Aug 28, 2011

Best Interest Free Credit Cards

If you are shopping around for a new credit card, you should definitely pay attention to credit cards with 0% interest. Though such generous offers last for introductory period only zero percent credit cards are excellent way to save some money. 0% APR cards attract a lot of new customers to banks but unfortunately they are available for people with good credit score only.

When you apply for 0% interest credit cards, you should pay attention to the duration of introductory period length and know what the regular APR will be. You should also evaluate the annual fee and rewards program offered. If you are going to transfer the balance to the new card check the rates and fees for balance transfer cause they can be different from the purchase APR.

Citi Platinum Select Master Card

Citi Platinum Select Card offers you 0% APR for 18 months both on purchases and balance transfer.  There is no annual fee. You will also get unique theft protect solution form Citi bank and 0% liability on unauthorized purchases. Regular interest rate from 11.99% to 20.99% is determined based on your creditworthiness. Balance transfer fee is 3% of the transaction or $5, which is greater.

Our resume: Citi Platinum Select is the best card for those who are looking for interest free credit card. With 18 months introductory offer and no annual fee this card is excellent one to apply for. If you plan to do a balance transfer, be aware of the 3% flat fee for the transaction.

Capital One Venture One Rewards Credit Card

That card offers 0% intro APR on purchases till August 2013. 11.9% – 19.9% APR on balance transfer applies.  No annual fee. You’ll receive 1.25 miles per dollar on every purchase you make and then can redeem them for car rentals and airline tickets. As most Capital One Cards Venture Credit Card comes with no international transaction fee. Regular APR is 11.9% – 19.9%. Excellent credit is needed to apply.

Our resume: Great card to get before the vacation – you’ll not only get 0% APR till next August, but also get nice miles rewards without annual fee and international transaction fees. But be aware of the balance transfer APR.

Discover Cards

Most of the credit cards, offered by Discover have zero interest for the intro period. Check some of the cards below. Please note that Staring from January 2nd 2013 Discover discontinues its line of credit card and offers a new Discover it card and Discover it for students instead.

Discover it Card

This new card takes the best of the popular More card and as a plus offers a combination 1% cashback for all purchases and 5% cashback for selected quarterly categories.

  • no annual fee, no international transactions fee, no overlimit fee, no fee for the first late payment
  • 14 to 18 month of the intro 0%APR
  • 10.99 – 20.99% regular APR after
  • 6 to 14 month intro interest free balance transfer APR
  • 3% balance transfer fee
  • 5% cashback on movies and restaurants (through march 2013, selected categories calendar is on Discover site).
  • 1% cashback on all other purchases

Discover it Card for Students

  • regular APR – variable 12.99% – 18.99%
  • intro APR – 0% for 6 month
  • intro balance transfer - 10.99% for 9 month
  • 5% cash back on selected, 1% on other spending – same as Discover it card
  • no annual fee, no international transaction fee, no fee for the first late payment

Discover More Credit Card

18 months with 0% interest rate are offered by Discover bank. Discover More Card goes with 1-5% cash back and no annual fee. For online shopping at selected retailers you can get up to 20% cash back. 0% fraud liability and 24/7 access to account manager located in US. Regular APR is 11.99% – 20.99% Balance transfer fee is 3% for every transaction.

Our resume: The reason why Discover More credit card is ranked #1 by customers’ loyalty is no annual fee, 0% intro APR for 18 months for both balance transfer and purchases and up to 20% cash back. Real cashback can be much smaller because most purchases will have only 1% cashback, only selected categories offer 5% and only online shopping at Discover will bring 20%.

Discover Student More

That card has an into APR on purchases only for the 1st 9 month, than regular 19.99%-18.99% APR applies. 5% cash back on selected items is a good addition to that. This is a student card so it doesn’t require a long credit history.
Our resume: Not all banks offer 5% cashback with no annual fee and intro 0 APR for students – Discover Student More it is a generous offer.

Discover Open Road

Open Road is a gas and dining rewards card – it offers you to earn 2% up to $250\month for gas and restaurants. 0% APR for balance transfer and purchases, rather low regular APR of 10.99%-19.99% then.

Our resume: Not the best option on the market but 2% cashback (with limitations though) and zero into APR makes it better. Be aware of the 3% balance transfer fee.

Discover Miles and Discover Escape

These are two Discover miles options that offer 0% APR for the 1st 6 month only and 10.99-19.99% regular APR (for both balance transfer and purchases). Miles rewards are different – Miles Card gives you double miles for first $3000\year spent on restaurants and travel and 1 mile for every $1 otherwise, Escape offers double miles for every $1 spent. Some additional sign up bonuses apply. The difference is also in the annual fee- Miles has no annual fee and Escape has $60 annual fee. Both cards require good to excellent credit to apply.

Our resume: If your goal is to earn more miles the Escape is a better option for you, if mile hunting is not your primary goal maybe you will prefer 0 annual fee of the Miles Card.

BankAmericard Visa Signature Card

BankAmericard Cash Rewards Visa Signature Card offers 0% APR on purchases for 12 billing cycles. Regular APR and interest rate for balance transfer is 12.99% – 20.99%. The best part about AmeriCard is that you get 1% cash back on every purchase, 2% cash back on groceries and 3% cash back on gas. So it’s an excellent way to maximize rewards from your everyday spending.

Our resume: BankAmericard Visa Signature Card is not the best card for balance transfer (because of the balance transfer APR), but it’s an excellent 0 APR card that offers 12 months of intro rates and nice rewards for everyday shopping.

Chase Freedom Card

This card has no annual fee, 0% APR for the first 15 month, and good cashback options. Transaction fee is 3% or 5$ which is greater. Regular APR is a bit higher than average 12.99-22.99%.Cashback is up to 5%on selected categories (changing through a year) with a $1500 quarterly maximum.

Our resume: Very good card because of the combination of  0% into APR and a cashback. Transaction fee of 3% is a drawback if you need it.

Chase Slate Card

This card is great if you need to move your balance – it combines zero APR for balance transfer and purchases for 15 month, 0% balance transfer fee for the first 60 days, and no annual fee. Regular APR will be from 11.99% to 21.99%.

Our resume: A great option for balance transfer. No rewards or cashback options is the drawback but if youhave debt the APR is much more important.

American Express Blue Card

Blue card from AmEx has no annual fee, intro APR for 12 month and excellent rewards – 2x points on travel, 1x points on all expenses.

Our resume: Low regular APR of 15.24-20.24 makes it a good deal for people with less than good credit.

American Express Blue Cash Everyday Card

No annual fee, 12 month interest free, great cash back – 3% on supermarkets, 2% for gas and selected department stores, 1% for everything else.

Our resume: Great card, but regular APR is 17.24-22.24% which is rather high.

As the conclusion we can say that interest free credit card that will be the best for your situation is a combination of the longest intro APR on balance transfer (if you need it), 0% balance transfer fee, longest introductory 0% APR on purchases, no annual fee and the best rewards or cashback you can find. And the best way to use that kind of card is to pay off all your balance during the introductory period, otherwise you can suddenly find a big debt on the card after the intro period finishes.

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