What are the best 0% APR travel credit cards?

A 0% APR means that you pay no interest on new purchases and/or balance transfers for a certain period of time. The best 0% APR credit cards give 15-18 months without interest. But the average 0% APR intro period is about 10.5 months for cards offering 0% purchases. And it’s around 12.21 months for the average card with 0% on transfers.… read full answer

A 0% APR does not keep you away from monthly payments, nor does it completely remove interest out of the equation. You still have to make monthly minimum payments to keep your 0% APR. And if you don’t pay off your balance by the end of the 0% intro period, you’ll have to pay interest on whatever balance remains. The penalty is even worse with many retailers’ 0% financing offers. If you don’t pay off your full balance in time, interest will retroactively apply to your entire original balance – as if the 0% APR was never there.

There are a few other things you should keep in mind when thinking about 0% APRs, too.

Here are some 0% APR key takeaways:

• You pay no interest on your purchases and/or balance transfers for the duration of the introductory APR period, which depends on the card.
• 0% APRs make debt cheaper to pay off, which helps you get out of debt faster.
• A 0% APR does not free you from the responsibility of making monthly payments. You must pay at least your monthly minimum to avoid being classified as late. Late payments damage your credit score.
• 0% credit cards tend to have fairly high regular APRs. So, you should strive to bring your balance to zero by the end of the 0% APR period, when regular rates take effect.

It’s also important to note that you won’t only find 0% APRs on credit cards. You may see auto loans with them, for example. Just be sure to always read the terms in detail before signing. You don’t want to end up with deferred interest instead of a true 0% APR.

You should get a 0% APR credit card if you have good credit or better, are planning to make a big purchase or balance transfer soon, and have a plan for paying off the balance before the intro APR period is over. If you fit these criteria, you’ll be able to make the most out of a 0% APR credit card.… read full answer

Making a plan to pay off a large balance can be an organizational hurdle for some – and if you never get around to planning the payoff, you’re more likely to end up paying some interest at the end of the 0% APR period. Using a credit card payoff calculator can be a big help.

You should get a 0% APR credit card if:

You have good credit or better

Most credit cards with a 0% interest period require at least good credit, so checking your credit score is a good first step.

You’re planning a big purchase or balance transfer

These are two of the best ways to use a 0% APR period because it’s a chance to pay off debt without interest charges. But be aware that not all credit cards offer 0% on both purchases and balance transfers - many only offer the deal on one or the other.

You have a plan for paying off the balance before the intro period is over

This is especially important because no-interest credit card offers usually lead to high regular APRs, and any balance left after the intro period will be subject to that rate. This works in the card issuer’s favor, not yours. The best way to plan paying off a balance is to use a credit card payoff calculator.

The credit card is not a store credit card

Store credit cards often advertise 0% interest periods, but most of the time, these are deferred interest deals. If you have any balance left at the end of a promo period on these cards, interest will retroactively apply - not just to the remaining balance, but to the entire purchase price. If you have good credit, you should qualify for a 0% APR period on a non-store credit card.

When shopping around for a 0% APR credit card, it’s also important to consider that a certain credit limit is never guaranteed. If you have a high limit in mind for a big purchase, for example, the best thing to do is to make your overall financial situation as low-risk as possible to a card issuer. That means having a clean credit report – including a history of on-time payments and low credit utilization – and enough annual income to afford your monthly payments.