The Best 0% Purchase Credit Card

Using 0 purchase credit cards to finance transactions that can be paid off within the introductory offer period is a great way to save money. The typical time period for one of these offers is six months, but it is important for you to know the exact date your deal expires. You should understand any and all of the limits of a card like this before you submit your application.

1. Who do these cards work best for? 0 purchase credit cards are good for those who know they will be making significant purchases within a set period of time. You will be able to save money on interest and still pay them off over a short period of time, freeing up your cash flow.
2. What happens to the debt after the introductory rate expires? Any amount left over will be subject to your cards ongoing interest rate for purchases. This rate could be quite high, some are as high as 20%. It is very important that you budget carefully so you can pay off your purchases before it incurs interest. If you do not your original savings will quickly be wiped away.
3. What about the cards that also offer 0% on balance transfers? You should be very careful about cards that have a double offer. In many cases they offer the same rate but for different periods of time. If you transfer a balance that has a zero interest rate for six months and a purchase rate of zero for three months you could wind up spending much more then you anticipated. Credit card companies use a thing called allocation of payments or negative payment hierarchy this means that they can, and usually do, apply your payments to the cheapest debt first. They may split the payments during the three months the rates are the same, but after that all of your payment will go to the balance transfer until it it paid off. That means your purchases will begin gaining interest and continue to until after the balance transfer is cleared. It is often best to use these cards for only one purpose during the introductory offer period or until those original debts are repaid.
4. Are cash advances allowed in 0 purchase offers? You will be able to make cash advances on your card, but they will be subject to interest immediately. In most cases there are no cash free days for cash advances nor are they considered purchases.

One of the best credit cards is the Citibank 0% purchase rate credit card. It offers no interest on purchases for six months and then a rate of only 11.49% per annum after that. The balance transfer rate is .99% for six months and the annual fee is a low $42. Owners also have access to various Citibank rewards programs.