0% Credit Card – Compare & Apply for 0% Credit Cards
Posted August 12th, 2010 and last modified May 16th, 2011Compare 0% Credit Cards to find the best offer for you
Personal debt is on the rise and people are finding themselves buried in debt that is usually a product of their own financial excesses. It can be overwhelming and frustrating, to say the least. People are looking for more ways to get control of their personal finances and get ahead.
One way to do this is by finding ways to move forward and make progress on the debt that is already owed. You can do this by searching for credit cards that give you the best rates. 0 APR credit cards and 0% balance transfer credit cards are excellent ways to save money and make some serious headway on your debts.
Featured Balance Transfer Credit Card
If you are looking for a credit card that will give you a low rate on the balances you transfer from your existing credit cards from another bank, the ANZ Low Rate MasterCard is a great offer, combined with a low purchase rate and annual fee.
- $58 annual fee
- 0% p.a. for 3 months (reverts to 13.24% p.a.) on purchases
- 0% p.a. for 3 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
Read the ANZ Low Rate MasterCard – Balance Transfer terms and conditions.
Why Choose 0 APR Credit Cards or 0 Balance Transfer Credit Cards?
0 APR credit cards and 0 balance transfer credit cards are some of the easiest and fastest ways to reduce your debt. The reason for this is because when you have either of these types of cards you are charged 0% interest! 0% APR credit cards will allow you to make purchases at no interest. And, balance transfer cards allow you to transfer higher interest balance over and charge no interest for a certain period of time. This time is known as the promotional period.
Let’s say you have a credit card balance of $1000 on another card that is charged at an interest rate of 20% p.a. Over a 6 month period you would end up paying approximately $100 in interest charges. However, transferring that balance over to a 0 interest credit card and you would pay absolutely no interest and you would end up saving that $100.
How Long Will This Rate Last?
As previously described, these are promotional rates and, therefore, will not last forever. The typical time period is for up to 6 months. You may find some that are longer but they are rare. After this promotional period expires then the rate will go back to the standard interest rate that is described in the terms and conditions.
Looking for 0 credit card offers can take some time but it is worth it. While you are searching, you will need to consider the following:
- Am I going to use this card to make purchases?
- How long will it take me to pay off the debt in full?
- Do I want or do I need any rewards programs?
After you have answered these questions you will be able to get a better picture of the type of card you will need. There are many different deals available so you want to find the right one that fits your budget and your spending style.
Other Things You Should Know
- Standard Rate of Interest – Whether you have a 0 interest credit card or a 0 balance transfer credit card, you will eventually, most likely, have to go back to paying the standard rate of interest. The standard rate of interest is the interest rate that the credit card provider will charge once the promotional rate has expired.
- Transfer Fees - When you decide on an offer to transfer a balance, you will be charged a fee for the transaction. This is called the transfer fee. The fee that is usually charged is 2-4%.
- Annual Fee - Most credit card providers charge an annual fee. The fees vary wildly from card to card. You can pay absolutely nothing to upwards of $200. The higher fees are associated with the gold and platinum cards that have extensive rewards schemes attached to them.
It is important to look at all of the details before deciding whether the change is worth the costs associated. If you need a basic card then choosing a card with a rewards program, a high annual fee may not be worth your time. With some careful consideration, you will be able to find the perfect card for you.
No Balance to Transfer?
If you are one of the lucky few who do not have a credit card balance to transfer then count your blessings! You may wonder if you can still benefit from a 0 credit card balance transfer. Well, you most certainly can.
Without a balance to transfer, you can use your credit card for an interest free loan. A regular bank would not generally offer a loan such as this so you can save a lot on interest by using this card to make purchases and not pay any interest during the promotional period.
If you are really comfortable with your financial standing then you can freely use these cards for your benefit in this manner. You have to decide what you want from your card so you can use it to your advantage.
Everyone wants to save money and pay off their debts at a faster rate. In order to meet this goal, you will need to look closely at all the related fees to see if it is worth the costs involved. In addition, you will want to take control of your spending and not use your cost to make purchases and pay as much as you can before the promotional period ends.
These cards can be magnificent tools for chipping away at your debt. You have to, however, use them wisely and make certain that you are focused and responsible.
Comparing 0 Credit Card Offers
Amid the myriad of credit card offers out there, it can be difficult to choose the right one. Credit card companies are working hard every day to get your business. They are constantly finding new tactics and strategies to pique your interest and increase their bottom line.
One way that they have gotten our attention is through these 0% interest credit card offers. With such fierce competition between the providers, the good news is that it is the customer that can win in the end, if he uses the card properly.
With so many to choose from, you must be judicious in your decisions and find the option that is most suited for your needs.
The Best Way to Compare Cards
If you are looking for the 0 balance transfer credit route then this is one of the best ways to pay off your high interest debt. When you transfer a balance over from a high interest card over to a card that has no interest for a certain time period then you are saving a bundle in interest charges during that promotional period. This can give you some breathing room to get it paid down faster than you would if you did not have the balance transfer card. You can actually move forward and not feel like you are struggling to simply make the minimum payments.
Like most good things, these promotions end. Each credit card has its own promotional period and the time frame is usually 6 months, sometimes less and sometimes more. Once the promotional period has ended, reality enters the picture again and with that comes the interest. The interest will return and will be added to your balance if you have not been able to pay it off entirely.
For this reason, you will want to look closely at the interest rate that it will revert to once the introductory period has ended. If the interest rate reverts back to 20% or more and you have a large amount of debt that you will not be able to pare down by the time the promotional period is over then this type of card may not be for you. You may want to look for credit cards, 0 interest cards specifically, that will allow you to spend on purchases without any interest. This way you will not accumulate debt as quickly and your balance will not be as high because you are not paying any interest on your purchases. You can also look for 0 credit card balance transfers that offer a longer period. This will give you more time to pay off the balance.
Understanding Balance Transfer Rate and Purchase Rates
When you are in the midst of comparing 0 balance transfer credit cards, it is important to note that these cards should be used solely for the purposes of balance transfers. They can be used to make purchases but you will pay a hefty price for this privilege. You are receiving the excellent rate of 0% only on the balance transfers. If you choose to make a purchase, it will be charged at the standard purchase rate. Even worse, if you take out cash advances on these types of cards, you will pay a lot in the way of fees. This will only increase your balance significantly and will hamper your efforts to clear your debt in a prompt manner.
Credit card companies have a payment structure called the hierarchy of payments. This means that payments will be applied to debts that are accruing interest at the lowest rate first. Any debt that is collecting interest at a higher rate will be paid off when the other balance or balances have been paid in full.
For example, if you transfer a balance at 0% and then you decide to use your card for purchases, the payments that you send in will be applied first to your balance transfer. The balance from purchases will continue to accumulate interest until that debt has been paid off. If you have a significant amount, it could be a long time before any payments will be applied to that higher interest balance. This would negate your efforts of paying off your debt quickly.
There are offers that exist that are 0% for balance transfers and 0% for purchases. This is a good card for someone who wants a card to serve these dual purposes. Be sure to check terms of each promotional period, however. They do not always coincide. For example, you could have a balance transfer promotional period that lasts longer than the purchase promotional rate period. If you continue to make purchases past the promotional period, you will begin to pay interest on those purchases. To make it easy on yourself, it is best to find an offer that has the time length of period for both purposes.
Use caution with these cards, however. If you are already in serious debt, then using your card for purchases whilst paying down another debt may get you into trouble if you continue to rack up high balances without the ability to pay it off promptly.
What To Do Next
So, you have found the card you want and now what? See below for specifics on getting the card you need.
- Fill out the application – You have done all of your homework and found the card best for you. Good job! Now, fill out the application either online or send in a paper application by post. If you are choosing a balance transfer card, have all your balances that you want to have transferred ready.
- Make those payments! - Look at your budget and see what you can reasonably pay. Paying the most you comfortably can will be the best option to pay off your debt quickly.
- Use that promotional period to your advantage - The whole purpose of acquiring these cards is to make use of the great rate and promotional period. They will not last forever so make the most of the time and pay off as much as possible.
Paying down your debt does not have to be difficult if you have the right tools in your arsenal. These 0 credit card balance transfer offers and these 0 credit card offers are the perfect way to get ahead and find your way out of the tangles of debt.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
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0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
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