Anyone who has been deep in credit card debt knows firsthand the incredible power of interest. It can turn a manageable debt into an absolute disaster quicker than most would believe.
But what if you could put the brakes on interest for a while? What if you could go a year or more without interest charges adding to your debt? Seems like a no-brainer, right? Well, those offers are out there, and they’re easy to find.
There’s never been a better time to shop for zero percent interest credit cards. They’re plentiful. They’re attainable. And some of the zero percent periods last for nearly two full years. These zero percent cards aren’t just for those who are struggling with debt either. If they play their cards right, smart shoppers can use them to save money on big purchases.
These cards aren’t without their pitfalls. Before you sign up for one, you need to do your homework to be aware of any fees, deadlines and restrictions that can trip you up.
Here are some of the best zero percent interest credit card offers out there right now.
[See: 8 Ways to Maximize Your Credit Card Rewards.]
Citi Diamond Preferred. If you’re simply looking for the card with the longest zero percent introductory period you can find, look no further. The Diamond Preferred offers zero percent on both purchases and balance transfer for 21 months — that’s nearly two years and the longest offer on the market today.
Say you have a $2,000 balance on a card with a 20 percent APR. If you reduced that APR to zero and paid the entire balance off in those 21 interest-free months, you would save yourself $387 in interest. That’s a major savings and can have a real impact on your ability to knock down your debts.
Those savings don’t come without some cost. For example, you will be charged 3 percent of your balance to do the transfer to the Diamond Preferred card. On a $2,000 balance, that’s $60. However, when you consider that you’re paying $60 to potentially save $387, it still makes sense.
This isn’t just about balance transfers, though. You also pay zero percent on purchases for 21 months. If you’re planning to buy a new refrigerator, laptop or some other big-ticket item, you can pay no interest on that purchase for 21 months if you use this card.
Other details: There’s no annual fee. The regular APR — the one you get after the zero percent period ends — ranges from 12.99 to 22.99 percent, depending on your creditworthiness. And you don’t have to have excellent credit to be approved.
[See: 10 Easy Ways to Pay Off Debt.]
Chase Slate. The Slate card can’t match the Diamond Preferred’s 21-month no-interest period, though its own 15-month introductory period is still one of the best in the business. It also applies to both purchases and balance transfers, like the Diamond Preferred card.
What separates Slate from other zero percent cards is that it doesn’t charge a balance-transfer fee if you transfer a balance in the first 60 days you have the card. That means you don’t have to pay that extra $60 to do the transfer — and when you’re doing everything you can to knock down your debt, every bit helps.
Let’s stick with the example of the $2,000 balance on a 20 percent APR card: If you transfer that balance to the Slate card and pay it off during those 15 interest-free months, you can save about $276 in interest charges. That doesn’t match the savings from the Diamond Preferred, but add in the fact that there is no balance-transfer fee associated with the Slate card, and the difference in savings shrinks considerably.
Other details: There’s no annual fee. The regular APR ranges from 15.49 to 24.24 percent, substantially higher on both ends than the Citi Diamond Preferred. And you don’t have to have excellent credit to get it.
[See: 12 Simple Ways to Raise Your Credit Score.]
BankAmericard Credit Card. This card can’t match Citi Diamond Preferred’s 21-month offer. It can’t match Chase Slate’s no-balance-transfer-fee offer. However, if you don’t expect to be able to fully pay off your balance during the zero percent introductory period, this might be the card for you because neither the Diamond Preferred nor Slate can match this card’s regular APR.
— Citi Diamond Preferred: 12.99 to 22.99 percent.
— Chase Slate: 15.49 to 24.24 percent.
— BankAmericard: 11.49 to 21.49 percent.
BankAmericard’s lowest and highest possible regular APRs are lower than those of its main competitors. Everyone hopes to pay off their debts in a given time period, but that often doesn’t happen. They end up with hundreds or even thousands left to be paid off and find themselves stuck with a high APR. That’s why these regular APRs really matter.
BankAmericard’s 18-month zero percent offer isn’t bad either. It’s one of the best in the business. And while it does come with a balance transfer fee, that fee is an industry-standard 3 percent.
The card falls short in comparison to the two aforementioned cards in one way: It’s the only one of the three that doesn’t offer zero percent interest on purchases. Depending on how you plan to use the card, that could be important. However, if you’re focusing on paying down your balances, you probably shouldn’t be doing much spending on the card anyway.
Other details: There’s no annual fee, and you don’t have to have excellent credit to get it.
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The Best 0 Percent Interest Credit Card Offers Available Now originally appeared on usnews.com
