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Are 0% APR Interest Credit Cards Worth It?

One of the biggest factors to consider when taking out a loan or opening a new credit card is the interest rate you’ll be assessed. This is why 0% APR interest loans or credit cards are so enticing. Below we’ll break down why many are drawn to these offers and a few things to check for in the fine print.

The benefits

Who wouldn’t want to be able to borrow money without having to pay any interest? Some people use 0% APR to consolidate debt with the goal of paying it off faster while others turn to them for specific purchases. If you’re carrying high-interest credit card debt, paying it off can seem impossible when you see what is going toward interest vs. your principal balances, making 0% APR helpful. It can also be useful when making larger purchases to give you time to carry the balance and space out paying it off without paying the interest that would normally come with it.

Typically when taking out a 0% APR credit card or loan, there is a set duration before interest accrues. This can range from six months to two years depending on the type of loan or card, and the provider.

The fine print

If avoiding paying interest sounds too good to be true, it’s because it can be if you don’t know everything you’ve agreed to in order to escape doing so. Understanding what types of transactions qualify as 0% APR, the requirements to maintain 0% APR, and what happens to remaining balances are just a few things to consider.

Sources:

• https://www.nerdwallet.com/article/credit-cards/pros-cons-0-interest-credit-card
• https://www.cnbc.com/select/how-do-0-apr-credit-cards-work/
• https://www.bankrate.com/finance/credit-cards/zero-interest/