The 0% credit cards are back with a bang

Saturday, October 2nd, 2010
Updated: October 2nd, 2010
The content is accurate at the time of publication and is subject to change.

Now that the 0% credit card is back, it is but natural for many of us to think of opting out of our regular credit cards (with 18% or over) to 0% credit cards. It is a clever ploy and one has to deal with caution before jumping in to these alluring offers and doing the balance transfer. Each of these transfers could cost a part of that balance which could easily amount to the minimum due for two months. As a rule, one must make sure that the fine print is read before making the switch.

While many feel that this batch could actually, one must be aware of the penalty factors as well. If a person`s credit scores are good (720 or more), their mailboxes would be filled with offers from various issuers. Some issuers offer 0% APR`s on fresh purchases as well as balance transfers for a period of about 21 months.

Now that the economy is back on track after the 2-year recession and unemployment, the delinquency rates on credit card debts has gone down by a whopping 26%, which is a good sign. Almost 70% of the card issuers have offered low introductory annual percentage rates on new purchases, while balance transfers are heading north.

While just a year ago, customers who maintained almost zero balances were turned down by companies, there seems to be a massive turnaround since that time. This was in fact the flip side to maintaining low or zero balances as the companies hardly made any profits out of them. During this phase, interest rates were hiked and credit limits were sized down. However, with the change in scenario companies such as Smart Money, hope that the borrowers will carry forward the balance beyond the initial period (introductory) and spend more.

In a nutshell:

Promotional periods longer (21 months compared to 12 months previously).

Transfer fee (3%-5%) where the transfer fee is less, the annual fee is more.

Caps on balance transfer fees have been discarded by most issuers.

Most of the 0% credit cards would end up with around 15% after the introductory period.

APR`s can be raised any time by the issuer. Since it is mandatory, the card holder would be notified via mail and the standard rules apply wherein, rates on existing balances would remain the same, but change with subsequent purchases (made after 14 days of receiving the mail notification).

A grace period of around 60 days is granted before the penalty kicks in. This would make the 0% offer meaningless.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Low APR Credit Card News

Wednesday, September 30th, 2020

Finally, there is a credit card specifically designed for Generation Z which is to meet the needs of today’s youth. Meet a new no-annual-fee credit card with rewards – the X1 Card. The offer is described as “the smartest credit card ever made.” But what is so smart about it? Let’s figure it out. The […]

Friday, January 17th, 2020

The new year brought holders of the Chase Sapphire Reserve card sad news about an annual fee increase from $450 to $550. Still, this is not a cause for frustration, since the new year also means new perks! This week, Chase introduced a couple of nice benefits for holders of select credit cards, including the […]

Saturday, January 11th, 2020

At the beginning of September, Stripe, a San Francisco, CA technology company developing software to make and receive payments over the Internet, announced the launch of their new card for businesses. Now the Stripe Corporate Card is open to US-based companies. The Stripe Corporate Card is a Visa card issued by Celtic Bank. According to […]

Tuesday, June 18th, 2019

This week Amazon in cooperation with Synchrony Bank came out with their new Amazon Credit Builder credit card. It is not difficult to guess that the card is aimed at people who need to build or rebuild their credit. So, what is offered to them and is it really worthwhile?

Tuesday, April 9th, 2019

On March 25, Apple Announced their new Apple Card credit card. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money,” said Jennifer Bailey, Apple’s vice president of Apple Pay.

Best Credit Offer
Best Credit Cards from
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 All Rights Reserved.

See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.