Americans are thrifty by nature, always looking for the best deal we can find. This desire to save the most we can extends to nearly every purchase we make. We haggle with car salesman for hours at a time to lower a monthly payment by as little as $25 and we compare every loaf of bread at the grocery store to find the loaf with the same ingredients as the name brand at half the price. This thrifty nature extends to other non-purchase related moves as well, such as choosing a no interest credit card. It is a good thing this is in our nature because not all cards are created equal and shopping for the right no interest credit card can be daunting given all the options.
No interest credit cards are usually only available to new card customers with a particular bank, lender, or credit card company. These cards carry an introductory period during which purchases or balance transfers, or both, carry no interest charges. After the introductory period ends though, the card returns to a normal interest rate that is determined by regular market factors. The following groups offer no interest credit cards:
- American Express
- Bank of America
- Citi Bank
- Discover Card
- MasterCard
- Visa
All of these companies are competing for your dollars and as such will all be trying to convince you that their no interest credit card is the best. When shopping for a no interest credit card it is important to do your homework, and this starts with ordering a credit report. By federal law Americans are entitled to one free credit report each year, so if you haven’t used it yet now is the time to do so. Even if you have, you can get your credit report from each of the three credit bureaus for as little as $15. Once you have your credit report in hand it is time to start shopping.
Search the internet or speak with a representative at your bank to learn as much as possible about no interest credit cards available. Typical features of no interest credit cards will include the following:
- No interest on purchases during the introductory period (6 to 18 months)
- No interest on balance transfers during the introductory period
- NO or waived annual fees
When shopping for a no interest credit card it is extremely important to pay attention to the introductory rate and the regular rate on the credit card. Many credit card companies are offering enticing interest rates, often at zero percent, to those who sign up for their card. This no interest period often lasts for six to 18 months, and when it expires a regular interest rate will take over.
This is where comparison shopping comes to the forefront. Credit card companies will offer various perks to try and entice new customers, but the long term interest rate is the most important factor to keep in mind. The average credit card APR is around 25%, but an individual’s regular rate after the introductory period can vary from as low as 10.99% to above the average APR.
Knowing your credit score ahead of time will come in handy at this point. The regular interest rate that will take effect after the no interest period expires will be determined by your credit score and credit history. Cards with a lower regular rate range are going to be the best option for you because with excellent or good credit you can get the lowest possible rate.
For help shopping for no interest credit cards, check out Zerointerestcreditcards.com. Here you can compare various cards and even apply on the spot.