Zero Rated Credit Cards

What Are Zero Rated Credit Cards?

Zero rated credit cards, also known as 0% APR credit cards, offer an introductory period where you won’t be charged interest on purchases, balance transfers, or both. These cards are particularly useful if you’re planning a big purchase or want to consolidate high-interest debt without paying hefty fees.

How Do Zero Rated Credit Cards Work?

The primary feature of zero rated credit cards is their 0% introductory APR. This means you can borrow money without accruing interest for a specific period, often ranging from 6 to 21 months. After the introductory period ends, the standard variable APR will apply, so it’s important to pay off your balance before then to avoid high interest rates.

Top Zero Rated Credit Cards to Consider in 2024

1. Chase Freedom Unlimited®

  • Intro APR: 0% on purchases and balance transfers for 15 months.
  • Regular APR: 19.24% - 27.99% variable APR.
  • Why it’s great: No annual fee, cash back on all purchases, and a solid 0% APR period for purchases and balance transfers.

2. Citi® Diamond Preferred® Card

  • Intro APR: 0% on balance transfers for 21 months.
  • Regular APR: 17.99% - 28.74% variable APR.
  • Why it’s great: One of the longest 0% intro APR offers for balance transfers, ideal for debt consolidation.

3. BankAmericard® Credit Card

  • Intro APR: 0% on purchases and balance transfers for 18 billing cycles.
  • Regular APR: 18.24% - 28.24% variable APR.
  • Why it’s great: No annual fee and a generous introductory period make it a great choice for paying down existing debt.

Benefits of Zero Rated Credit Cards

  1. Debt Consolidation: Move existing credit card debt to a card with a 0% intro APR to save on interest.
  2. Interest-Free Purchases: Spread the cost of a large purchase over time without paying interest.
  3. Savings: Cards with no annual fee can help you save even more, making them budget-friendly options.

What to Watch Out for With Zero Rated Credit Cards

  • Balance Transfer Fees: Some cards charge a fee (usually 3% - 5%) when you transfer a balance.
  • APR After Intro Period: Be aware of the standard APR that applies after the promotional period ends.
  • Missed Payments: Missing a payment can lead to losing your 0% APR offer, so set up automatic payments or reminders.

How to Choose the Best Zero Rated Credit Card for You

When comparing zero rated credit cards, consider the following factors:

  • Length of the Introductory Period: The longer the 0% APR period, the more time you have to pay off your balance without interest.
  • Balance Transfer Options: If you’re consolidating debt, look for cards with no balance transfer fees.
  • Rewards and Perks: Some cards offer cash back or points, making them more valuable.

Zero rated credit cards are a powerful tool for saving money on interest, whether you’re managing existing debt or planning a big purchase. By understanding the terms and choosing the right card, you can take advantage of these benefits and improve your financial health.