How To Compare 0% Credit Cards

Many banks are offering credit cards with a 0% introductory rate which can be a great deal, but there are a few key issues you want to look at before you start filling out applications. Some of the questions you should be asking are: what is the term limit, what is the rate after the term ends, what other benefits are tied to this card – if any? So, here we go.

Term Limits

First and foremost, as you begin to compare credit cards is what the term limits for each card is. Most of these 0% credit cards are on purchases and balance transfers for at least 6 months, some offer 12 months, and one card advertises 15 months. For those who want to save on interest payments, the longer the term lasts, the better.

Rate After Term

After your 0% term ends the rates will vary depending on the company and the card you have selected. In researching this, the rates I have found have been between 12% and 21% based on your credit score. Now, before you have a heart attack over these rates, remember this: you have to have an excellent rating score in order to qualify in the first place. That being said, as long as you keep up with your good habits, you should be in good shape to get a lower rate. Make sure you take a good look while you compare credit cards because there are a few that have a set rate when the term ends regardless.

Additional Benefits

This is important, almost as important as the rate. Every card offers different additional benefits. One might offer cash back, roadside assistance, airline miles with no black-out dates, etc. Find what works for you and your lifestyle and then choose your card.

Additional Recommendations

Now that you have selected one out of many 0% credit cards and have the shiny new card in your hand, here are a few recommendations. First, if you have a credit card with a higher balance, which you more than likely do, I recommend transferring your balance from the one card to your new card. This will save you money in the long run and – provided you get it paid off before the end of the term – you won’t have anything to worry about in regards to interests rates. These cards can be a great tool to help you out of debt.