0 Interest on Purchases: What You Need to Know
Are you tired of paying high interest rates on your credit card purchases? Do you want to make a big purchase without breaking the bank? If so, you may be interested in credit cards that offer 0 interest on purchases.
What is 0 Interest on Purchases?
0 interest on purchases means that you won't be charged any interest on your purchases for a specific period of time, usually ranging from 6 to 24 months. This can be a great benefit for consumers who want to make a large purchase and pay it off over time without incurring interest charges.
How Does it Work?
Here's an example of how 0 interest on purchases works:
Let's say you apply for a credit card that offers 0 interest on purchases for 12 months. You use the card to make a $2,000 purchase on a new TV. As long as you make the minimum payment each month, you won't be charged any interest on your purchase for the entire 12-month promotional period.
Benefits of 0 Interest on Purchases
There are several benefits to 0 interest on purchases:
Save Money on Interest
The most obvious benefit is that you won't be charged any interest on your purchase, which can save you a significant amount of money over time.
More Time to Pay
0 interest on purchases gives you more time to pay off your debt without incurring interest charges, which can be especially helpful if you're making a large purchase.
Flexibility
With 0 interest on purchases, you can make a large purchase and pay it off over time, without worrying about interest charges piling up.
Things to Consider
While 0 interest on purchases can be a great benefit, there are some things to consider:
Promotional Period
The 0 interest promotional period is usually limited to a specific period of time, after which the regular interest rate will apply.
Regular Interest Rate
Make sure you know what the regular interest rate will be after the promotional period ends, as it may be higher than you expect.
Fees
Check if there are any fees associated with the credit card, such as annual fees or late payment fees.
Best Credit Cards for 0 Interest on Purchases
Here are some of the best credit cards for 0 interest on purchases:
Citi Simplicity Card
The Citi Simplicity Card offers 0 interest on purchases for 21 months, with a regular APR of 15.74% - 25.74% (Variable) after the promotional period ends.
Bank of America Cash Rewards credit card
The Bank of America Cash Rewards credit card offers 0 interest on purchases for 12 months, with a regular APR of 14.49% - 24.49% (Variable) after the promotional period ends.
Discover it Balance Transfer
The Discover it Balance Transfer credit card offers 0 interest on purchases for 6 months, with a regular APR of 14.24% - 25.24% (Variable) after the promotional period ends.
Conclusion
0 interest on purchases can be a great benefit for consumers who want to make a large purchase and pay it off over time without incurring interest charges. However, it's important to carefully consider the terms and conditions of the credit card, including the promotional period, regular interest rate, and fees. By doing your research and choosing the right credit card, you can save money on interest and make your purchase more affordable.
