This post comes from Logan Abbott, editor of the credit card section of My Rate Plan.
A Money Talks News reader recently wrote with the following question:
I have some big purchases coming up with some unexpected medical bills in addition to moving houses. I will probably be fine paying off my balance after a couple of months, but I want to be safe by opening a new credit card with a long intro period of 0% interest on purchases. I have pretty good credit. Can you recommend one for me?
Good question, Nicolai. First, it’s good you think you’ll be okay without completely relying on the 0 percent introductory period. You never want to put yourself in a situation where you’re relying only on credit to make everyday purchases. But if unforeseen expenses mean borrowing, you can’t get a better interest rate than zero!
Here are my top three picks for the best no-interest credit cards on the market; keep in mind while these cards have zero interest rates on purchases and balance transfers, balance transfers may incur a fee – so while the rate is zero, the cost for balance transfers isn’t.
The Discover it Card is my favorite no-interest credit card because it offers a host of other benefits in addition to its long 0 percent introductory APR period on purchases.
With the Discover it Card, cardholders receive a 0 percent introductory APR on both purchases and balance transfers for 14 months. After the intro period expires, the variable APR is between 10.99 and 20.99 percent depending on your creditworthiness.
The Discover it Card has no annual fee, no over-limit fee, no foreign transaction fee, and no pay-by-phone fee. If you make a late payment after the no-interest intro period, Discover will not increase your APR. Finally, the Discover it Card offers 5 percent cash back at rotating categories throughout the year, as well as 1 percent cash back on all other purchases.
Capital One Cash Rewards Card
The Capital One Cash Rewards Card is another great choice if you’re looking for a credit card with a long no-interest intro period.
With the Cash Rewards Card from Capital One, cardholders receive a 0 percent introductory APR on purchases and balance transfers until February 2014. After that, the variable APR between 12.9 and 20.9 percent applies.
The Capital One Cash Rewards Card features no annual fee, and offers 1 percent cash back on all purchases. In addition to the 1 percent cash back bonus, the Capital One Cash Rewards Card also offers a 50 percent cash-back bonus on the cash back you’ve already earned at the end of each year.
Citi Simplicity Card
The Citi Simplicity Card rounds out my list of the best no-interest credit cards currently available.
With the Citi Simplicity Card, cardholders receive a 0 percent intro APR on purchases and balance transfers for 18 months. The card also has no late fee, no penalty rate increases, and no annual fee. The only reason the Citi Simplicity Card isn’t higher on this list is because it doesn’t offer a rewards program. However, you won’t find another credit card on the market with a longer zero-rate introductory period.
Note: While we attempt to be completely objective when reporting on credit cards, this site may be compensated by issuers when a reader applies for a credit card through the links within credit card stories or on our credit card search page.
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