Credit Karma Blog
0% Interest Rate Credit Cards for the Holidays
The peak holiday shopping period is right around the corner. In a tough economy, any saving is a nice bonus so we compiled a list credit cards with 0% APR for 6 or 12 months on new purchases to help consumers stretch their Holiday shopping dollars. Combined with the 0% APR, the rewards and cash back features could save you hundred dollars this holiday season. Here is a short list of the cards you may find useful. Keep in mind you will need good credit (640+) for most of these offers.
Consumers with Good Credit
- 0% Introductory APR for 6 Months on New Purchases
- No Annual Fee
- Up to 5% Cash Back on Purchases
- 0% Introductory APR for Up To 12 Months on New Purchases
- No Annual Fee
- 0% Introductory APR for Up to 12 Months on New Purchases
- No Fees of Any Kind
- American Express Gift Cards Rewards Program
- 0% Introductory APR for up to 12 Months on New Purchases
- No Annual Fees
- Cash Back Program
Student Cards
Citi mtvU Platinum Select for College Students
- 0% Introductory APR for 6 Months on New Purchases and Balance Transfers
- No Annual Fee
- Earn Additional Citi Rewards for Maintaining a Good GPA
Discover Student Open Road Card
- 0% Introductory APR for 6 Months on New Purchases
- No Annual Fee
- Up to 5% Cash Back on Purchases
Keep in mind that credit cards should be treated as a convenience and used responsibility. As such, we suggest using these cards as a way to make cash back or other rewards on gifts from your list. If you don’t think you have the discipline to pay off the balances during the 0% APR introductory period, we strongly suggest using cash.
Here are a few more tips to help manage your credit and credit cards this holiday season.
- Don’t Apply for Too Many Credit Cards. Too many credit inquiries are bad for your credit score. As such, do your research first and find the right card based on your credit score and your spending habits.
- Know the Details. Some cards have great rates for purchases but poor balance transfers rates or vice versa. Virtually all cards pay the balance with the lowest APR first. That means if you have a Balance Transfer of 0% APR and a purchase rate of 15% APR, all your monthly payments go towards paying off the lower APR balance transfer first while your purchase balance keeps accruing interest at 15% APR. Don’t fall for it! Be smart.
- Keep Credit Card Utilization Low. If you carry a balance, make sure it stays below 35% of your credit limit on any single card. Carrying a balance higher than 35% could negatively impact your credit score and possibly increase the interest rates on your existing cards.
- Pay On Time Each Month. Most credit card companies are counting on you to be late on your payment. Don’t get caught paying late fees or giving credit card companies the right to increase your APR. Pay on time or even a couple days early!
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I am confused about what constitutes a “good” credit score. In this post you say:
“Keep in mind you will need good credit (640+) for most of these offers.”
My score is 700, well above the “good” threshold by this definition. But when I view the details of my score and look at the charts, it shows my score as being on the borderline between “fair” and “good”. Most lenders I have talked to say anything in the 700’s is very good.
Confusing!
Like everything, good is relative. In the recent months with the credit crunch, the definition of good and excellent credit have definitely increased.
In this post, we are using good in the generic case (i.e. you can’t have bad credit). We used 640 because we have seen approvals for some of these cards with that credit score. http://www.creditkarma.com/creditcards/goodcredit
Sorry if this caused any confusion.
Zero percent cards are a good move that a lot of people don’t take advantage of. Sure, it takes time to locate them (which you’ve taken care of with this post) and fill out the forms, but if you carry a balance you are costing yourself potentially a lot of money.
Great post.
Alan