05/16/2016

No Interest Credit Cards - too Good to be True?

No interest credit card

You can save a significant amount of money on your purchases if you are aware of the interest rate attached to the card. If you can take advantage of the no interest credit cards available, you can save even more. Cards without interest rates are rare but are often available in a couple different forms. One no interest option is with cards offering 0% introductory APR offers. Another option for saving on interest is using a charge card. Here are some other tips for finding the right no interest credit card for you and saving money on interest.

 

0% Introductory APR Offers

Credit card issuers frequently offer 0% introductory APR promotions designed to attract new cardholders. Some of these offers allow you to use the card without paying interest on your purchases for as long as 24 months. Right now the best 0% no interest cards available include the following:

read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR 0% for 21 monthsregular APR12.99 - 22.99% (V)
intro BT APR 0% for 21 months 3% BT fee $5 min

no annual fee

0% APR for 21 months for BT and purchases

read review

Citi Simplicity Credit Card offers a 0% introductory APR for purchases and balance transfers for 21 months, which is one of the longest no interest offers available at the moment. After the introductory period, you will pay a variable APR between 13.24% and 23.24%, depending on your credit. There is no annual fee for this card, no late fee, and no penalty rate, making it one of the lowest fee credit cards available as well.

Advantages of the Citi Simplicity Credit Card

  • 0% intro APR on purchases and balance transfers for 21 months
  • No annual fee, no late fee, no penalty rate

Disadvantages of the Citi Simplicity Credit Card

  • Few extra card benefits

 

read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR 0% for 21 monthsregular APR12.24 - 22.24% (V)
intro BT APR 0% for 18 months 3% BT fee $5 min

no annual fee

low APR from 12.24%

21 months 0% intro APR on BT and purchases

read review

Another Citi card currently offering a lengthy 0% introductory APR is the Citi Diamond Preferred card. This card offers 0% APR for 21 months for purchases and balance transfers and then a variable APR of 12.24% to 22.24% will apply. This card also includes VIP treatment which includes personalized concierge services and other benefits.

Advantages of the Citi Diamond Preferred

  • 0% intro APR on purchases and balance transfers for 21 months
  • VIP treatment benefits

Disadvantages of the Citi Diamond Preferred

  • No rewards program

No Interest Cards for Balance Transfers

Cards offering no interest promotions are also useful for balance transfers. With a 0% APR for balance transfers, you can save money on interest by transferring a balance from another card with a high APR. You can then pay down the balance without paying interest and save hundreds of dollars. In order to get the most out of no-interest balance transfer offers, keep these tips in mind.

  • Make sure you can pay down the balance during the 0% introductory period
  • Don’t forget to calculate the cost of balance transfer fees
  • Look for cards that offer low interest rates after the intro period in case you can’t pay it off

The Chase Slate Credit Card currently offers one of the best balance transfer opportunities because it not only provides a 0% intro APR for 15 months for balance transfers and purchases, but there is also no balance transfer fee on transfers made in the first 60 days of opening the account. Balance transfer fees with other cards are normally at least, 3% of the transfer, which can become expensive if you need to transfer a large balance. After the intro period, a variable APR of 13.24% to 23.24% will apply. There is also no annual fee for this card.

read card review Apply Now
at issuer’s secured site
fair credit
intro purchase APR 0% for 15 monthsregular APR12.99 - 22.99% (V)
intro BT APR 0% for 15 months, 0% BT fee 60 days 3% BT fee $5 min

no annual fee

0% intro APR on purchases and balance transfers

0% BT fee for 60 days

free FICO score

read review

Advantages of Chase Slate

  • 0% intro APR on purchases and balance transfers for 15 months
  • No balance transfer fee for transfers in the first 60 days

Disadvantages of Chase Slate

  • No extra rewards or benefits

Read more about the best balance transfer credit cards here.

No Interest Charge Cards

There are opportunities available that don’t charge interest at all, even without special 0% introductory offers. If you don’t want to deal with paying interest on your purchases, but you still want to be able to use a card for your purchases, you should consider charge cards. Charge cards usually don’t have set credit limits and don’t charge interest because you have to pay the entire balance in full every month. Cardholders often find charge cards more convenient because the credit lines are open and you don’t pay interest. Some of the best charge cards include the following:

read card review Apply Now
at issuer’s secured site
good credit
rewards 1x-2x-3x on every dollar +25,000
  • earn 3x points on airplane tickets booked directly with airlines
  • 2x points for gas, supermarkets 
  • 1 point per dollar on everything else
  • get 25,000 points after spending $3,000 in the first 3 months of the account

 

$175 annual fee, waived for first year

charge card, need to pay off balance in full every month

read review

Premier Rewards Gold Card from American Express is a charge card and thus, has no credit limit or interest rate. The annual fee for the card is $195. You can earn three points per dollar for flights booked with airlines, two points for U.S. supermarket, gas station, and restaurant purchases, and one point for all other purchases. This card is also well known for providing many extra perks and benefits for traveling. New cardholders can also receive 25,000 points after spending $2,000 on the card within the first three months of opening the account.

Advantages of Premier Rewards Gold Card

  • No interest charge card
  • Bonus 25,000 points

Disadvantages of the Premier Rewards Gold Card

  • Annual fee

 

rewards 1 point per $1 on all purchases 

$95 annual fee, waived for the first year

charge card-not revolving

read review

Another charge card from American Express is the Platinum Card. This card is considered one of the most elite cards available and comes with an annual fee of $450. However, many users find the extra card and travel benefits, like the airline fee credit of $200 each year, to be worth the annual fee. New cardholders also get 40,000 points after using the card for, at least, $3,000 in purchases in the first three months of opening the account.

Advantages of the Platinum Card

  • No interest charge card
  • Bonus 40,000 points
  • Additional card and travel perks

Disadvantages of the Platinum Card

  • High annual fee

Saving Money on Interest

No matter the interest rate you get with the credit card, you can still save money and avoid paying the interest if you pay your balances in full each month within your grace period. In this way, even if you don’t have excellent credit or don’t qualify for some of the no-interest opportunities that are available, you can still use your card interest-free. Charge cards generally require excellent credit scores to qualify. So, if you aren’t able to pay your balances in full each month, it’s best that you look for the credit card that offers the lowest rate possible, even if it doesn’t offer a 0% introductory period.

Read more about low interest rate cards here.

 

 



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