Zero APR credit cards

You may have heard the term zero APR credit cards and may be wondering what exactly this refers to. This article will explain the details of zero APR credit cards.

Zero APR credit cards are basically credit cards that charge a 0% rate of interest. These cards are fairly common, but there are a number of catches that you should be aware of.

There are two types of zero APR credit cards – cards that offer a zero APR on balance transfers and cards that offer zero APR on purchases.

Zero APR balance transfer cards

If you choose to do a balance transfer to a zero APR balance transfer card, you will enjoy a 0% interest rate on the amount of money that was transferred.

Most of the time, there is a limit to the length of time that you will enjoy this 0% rate – normally, it is capped at six or nine months. In addition, most 0% balance transfer cards do not offer 0% interest on purchases.

So if you do get a zero APR balance transfer card, you will still be charged interest on any purchases made with the card. Any repayments that are made on the card first go towards repaying the cheaper debt, that is the 0% balance transfer that was made. So the amount spent on purchases will continue to attract interest charges.

Zero APR purchase cards

On the other hand a credit card that charges zero APR on purchases will not normally offer zero APR on any other kind of transactions such as balance transfers or cash advances. In addition the period of time that the zero APR is offered is usually limited to a few months, although it is possible to find cards that offer zero APR for up to twelve months.

Like the zero APR balance transfer cards, any repayment made on these cards will first go towards repaying the cheaper debt. For instance, if you make $100 of purchases and $50 of cash out (which attracts interest), a $50 repayment will go towards repaying the amount spent on purchases, while the $50 spent on cash out will continue to attract interest charges.

Banks normally offer zero APR deals to attract new clients. Since a bank is a business, they exist to make a profit and not to offer clients interest-free loans – so if you do accept a zero APR credit card, make sure to read the terms and conditions carefully and understand the exact benefits that you will be enjoying.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%