0% Intro APR Credit Cards

However, to take full advantage of this kind of credit card deal without getting burned, you need to look at that introductory rate in the context of the other terms of the offer.

What to look for in a zero-percent APR offer

A zero-percent introductory APR is certainly eye-catching, and that's just the idea. However, there are additional things to consider when evaluating these kinds of credit cards. Here are some of the key elements you should identify:

• What's eligible for the introductory rate. Does the promotional interest rate apply to balance transfers, new purchases or cash advances?
• Time window to make purchases and balance transfers that qualify for the introductory rate.
• Length of time that the introductory rate applies to your eligible balance.
• Regular interest rate. What interest rate will be charged after the promotion expires?
  
• Interest rate on cash advances. This may be higher than the regular rate.
• Rewards and other benefits. Find out about any cash back or points towards goods and services are awarded based on your use of the card.
• Annual fees. Some cards have no annual fee. Some waive the fee for the first year, and some don't.

Once you've identified all of the above, you will be ready to fully evaluate the credit card offers.

Is a zero-percent APR credit card deal right for you?

What could be lower than zero percent? Is this just a marketing gimmick, or can it really represent a worthwhile opportunity?

In the long run, other credit card terms, such as the regular interest rate and any annual fees, will be the main factors in determining whether a credit card offer is a good deal or not. However, in the short run a zero-percent credit card rate could certainly save you money if you're currently paying credit card interest. So, you need to weigh this short-term benefit against long-term costs.

Since no card offers zero percent APR on purchases and balance transfers forever, you'll need to make a realistic estimate of your spending patterns over the next year or two to determine if a zero-percent APR credit card is right for you.

How to choose a zero-percent APR offer

One easy way to evaluate competing offers is to start by comparing the regular interest rate and the annual fee, if any. Then, if you identify two or more roughly equivalent offers, a zero percent introductory rate could be viewed as the tie-breaker between otherwise similar offers.

If you're comfortable crunching numbers and want a more detailed analysis, you'll need to estimate your use of the credit card over the next year or two. Based on that estimate, determine how much different credit card offers would cost you over that time period. You'll need to consider:

• How much you expect to purchase during the introductory period
• How much you plan to purchase once the initial period expires
• How much of a balance you would be likely to carry from one month to the next
• The dollar value of what you expect to earn in rewards or miles
• Annual fees

The credit card terms that produce the lowest expense based on your estimates should represent the best offer for you.

Zero percent credit card deals: what to watch out for

While "0% intro APR" credit cards can certainly work to your advantage, there are some potential pitfalls you should avoid:

• Don't let a zero percent introductory rate lure you into purchases you wouldn't otherwise make. Spending more just because you can do it interest-free is false savings - especially if you don't pay off your new balance before the end of the introductory period.
• Don't get drawn into a higher ongoing rate just because of a temporary introductory rate. In the long run, the regular rate is much more important than the introductory rate.
• Don't assume the introductory rate also applies to balance transfers. This is significant if you are planning to transfer an existing balance to the new card.

In general, the key is to look for the offer that best fits your likely use of the card, without letting the benefits cause you to spend more than you might otherwise.

Last step: the credit card application

If you find a lot of great deals, keep in mind that applying for multiple cards in a short time frame can affect your credit score. Before you start applying for cards, pick the best credit cards that work best for you, and plan to stick with them for a while.

Also, before using a new card, make sure you got the terms you applied for in the first place, since specific offers may be subject to meeting specific credit quality criteria.

Credit card companies make a variety of special offers to attract new customers. Make the most of these offers by taking the time to compare credit cards and choose the card that will best match your probable usage of the card.