I got approved for the Discover Student IT card which has 0% APR for the first 6 months. I read over the terms and all, and it doesn't seem to have any surprise purchase / carryover fees / negative implications as long as you make the minimum payment. I'm planning to buy a $200 item for which I plan to pay off in 2 months, about half this month. INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum. Citi® Diamond Preferred® Card. On Citibank's application. Annual Fee $0 Regular.

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This offer is no longer available on our site: Capital One® VentureOne® Rewards Credit Card

Even if you’re not looking for another credit card, discovering new credit card offers for a 0% intro APR can be incredibly exciting.

After all, it could mean you don’t have to pay interest on purchases for a certain period of time. But is taking advantage of a 0% intro APR offer the right decision for you?

Before you rush off to apply for a 0% intro APR card, make sure you understand how the offer works, as well as how you plan to use the card.

Types of 0% APR offers

A purchase APR, or annual percentage rate, is the interest rate applied to your purchases if you carry a balance on your credit card. A credit card offer may boast a 0% intro APR, but it may not apply to both balance transfers and purchases.

To find out the specifics of the card you are considering, check the terms and conditions listed on the credit card agreement and a summary of the costs of the credit card listed in a table format (also known as the Schumer box). You can find the Schumer box in credit card agreements.

One type of 0% APR offer is for purchases. A 0% introductory purchase APR means you won’t be charged interest on your purchases for a certain period of time as determined by your credit card company. In order to take advantage of this offer, you’ll need to make at least the minimum payments due on your statement.

For example, if you receive an offer for 12 months, you won’t be charged interest for 12 months on items you’ve purchased in the first year of your account opening. However, any benefits of this offer may be contingent on you paying off your balance in full by the end of the introductory period.

Another type of 0% APR offer is for balance transfers. A 0% introductory APR offer on balance transfers means you’re not charged interest on a balance you transfer from another credit card. This type of offer also comes with a temporary introductory period.

Is it really 0% APR?

In order to tell if a card offers 0% intro APR, you’ll need to scrutinize the fine print.

Even if a card offers a 0% intro APR, you may still have to pay interest on some things. For example, if your 0% intro APR offer was for balance transfers only, then any new purchases on your card may be charged interest unless you pay off your balance in full each month by the due date.

After the introductory period ends, your balance and any new purchases will be subjected to the regular APR (the national average as of June 24, 2017, is 15.96%). This could negate the savings from transferring your balance if you do not pay it off during the introductory period.

You’ll also need to watch for penalty APRs, which are imposed if you’re late on your payments or exceed your credit limit. Penalty APRs can be significantly higher than the regular APR. In fact, a penalty APR can be as high as 29.99%.

In addition to paying the penalty APR, paying late may cause you to lose your introductory APR offer. Also note that even one late payment can hurt your credit.

When is it a good idea to apply for a 0% APR offer credit card?

If you can make the minimum payments to keep the introductory offer, there are a few scenarios when you may want to get a 0% intro APR card.

You want to pay down high-interest credit card debt

High-interest balances can be difficult to pay down, but making a balance transfer with a 0% intro APR card could help ease the burden. Doing so can help you focus on paying off your debt as quickly as possible, ideally during the introductory period.

Keep in mind that some cards will require you to request a balance transfer within a certain timeframe of account opening, so check to see if this is the case.

One more thing to note: Balance transfers are typically subject to a fee — often between 3% and 5% of the balance.

You have a large purchase

Whether you’re saving for a vacation or a major appliance, or you get struck with an unexpected emergency, a credit card with a 0% intro purchase APR can be a handy tool.

Using this credit card can help ease the burden of paying a large amount at once. It can also help you avoid taking out a personal loan, which you may have to pay interest on. Instead, you can parcel out your payments throughout the introductory period without having to pay any interest.

However, this option only works to your advantage if you pay off the balance before the introductory offer ends. Otherwise, you will have to start paying interest on the remaining balance moving forward. To avoid this, make a plan to pay off the card before the introductory offer is over.

Keep in mind that there is a chance you may get denied when applying for a new credit card. Also, if you apply to a card, you will have a hard inquiry on your credit reports. Too many of these within a short timeframe could result in lowering your credit scores.

Credit cards with great 0% intro APR offers

Chase Freedom Unlimited®

Chase Freedom Unlimited®

4.0/5

From cardholders in the last year

To decide whether to pay off credit card or loan debt first, let your debts' interest rates guide you.

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Credit cards generally have higher interest rates than most types of loans do. That means it's best to prioritize paying off credit card debt to prevent interest from piling up. Doing so can also help build credit, since reducing credit card debt directly impacts your credit utilization, one of the biggest contributing factors to your credit scores.

Here's how to figure out which debts to eliminate first—and the best ways to get rid of them, once and for all.

How to Determine Which Debt to Pay Off First

Typically—though not always—the interest rates on loans are lower than on credit cards. Personal loans, auto loans and mortgages are examples of installment loans that you pay back with monthly fixed payments over a set period of time.

In addition to interest rate, you'll see the term APR (annual percentage rate) used for installment loans and credit cards. For installment loans, the APR reflects the total cost of the loan, including fees such as origination fees. For credit cards, the interest rate and APR are the same thing.

The average credit card APR as of November 2019 was around 17%; yours could be higher or lower depending on your personal credit profile when you applied. Personal loan APRs, for instance, start at 6%, though they can reach 36%, also depending on your credit and type of loan.

To find your own credit cards' or loans' rates, take a look at your monthly statements or contact your lender if you're unsure. Start by sending extra money to the debt with the highest APR—which will generally be a credit card. That way, you'll begin cutting down on the principal balance of your debt, and you'll pay interest on a reduced amount.

Make sure whichever debt you decide to attack first, you continue paying your monthly bills on the rest of your debts to avoid missing a payment. A history of on-time payments is the largest contributor to a strong credit score.

Paying Off Credit Card Debt

If you have several credit cards, first make a list of your current balances, APRs, minimum monthly payments and due dates. That will help you figure out how to begin your payoff journey. Here are a few paths you can take:

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• Debt avalanche method: The most cost-saving payoff method is to target the credit card with the highest APR first, also known as the debt avalanche method. Using this strategy, you pay as much as you can on that card while you pay just the minimums on the rest of your cards. Once you pay off that card, you'll move to the card with the next-highest balance and employ the same strategy until all your cards are paid off.
• Debt snowball method: You might prefer paying off small balances first, which is known as the debt snowball method. Doing so won't save you as much money as paying off credit cards with the highest APRs first, but it can be effective if experiencing a series of small wins—by paying off accounts more quickly—encourages you to continue attacking debt.
• Balance transfer credit card: If you have good or excellent credit, you may also qualify for a balance transfer credit card. This gives you the opportunity to move multiple credit card balances to a single card, potentially at 0% APR for a period of time. You can pay off debt interest-free if you get rid of the balance by the time your promotional period ends—a crucial component of the strategy so you can avoid paying a much higher standard APR.

As an added bonus, paying off credit cards can also help improve your credit scores. The amount you owe on your credit cards compared with your total credit limit makes up your credit utilization ratio. Experts recommend limiting your utilization to 30% or less at all times to keep your scores strong, or below 7% for top scores. The more you pay down credit cards—without adding to debt—the lower your credit utilization will be.

Which Loans Should You Pay Off First?

Similar to the credit card payoff process, the best approach with installment loans is generally to focus on loans with the highest interest rates or APRs. In practice, that often means concentrating on car loans over mortgages, for example, and private student loans if they have higher rates than your federal student loans. In addition, because mortgages tend to be very large, long-term loans of up to 30 years, paying this loan off quickly might simply be unrealistic compared with paying off other, smaller installment loans over a relatively short time period.

Just like you did for credit cards, list your loan balances, APRs, monthly payments and due dates to get yourself organized. With any extra money you can spare—potentially from increasing your income or cutting back on expenses—make extra payments toward the loan with the highest interest rate first.

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You can also consider strategies to lower your loans' interest rates or monthly payments. That way, you can send more money to your bills and get out of debt more quickly. Here are some options:

• Refinance your mortgage to a lower interest rate, if you qualify for one, and put the savings toward other debts with higher interest.
• Refinance your student loans, which is a particularly smart strategy if you have high-interest private loans. Refinancing federal student loans isn't as safe a bet: You'll lose the ability to lower your monthly payments to a portion of your income and you'll forfeit access to potentially useful forgiveness programs.
• Opt for a debt consolidation loan, which allows you to roll multiple debts into a single personal loan with a fixed monthly payment. For debt consolidation to work, the interest rate you qualify for must be lower than the average rate of your current debts.

To make sure you can keep up with your loan payments, make a budget. You can do it yourself with a traditional spreadsheet or use one of the many free budgeting apps available online. Set up autopay on all your loan bills, either for the minimum payment or a larger amount if your lender allows for it.

Keep It Simple—and Start Now

The decision to pay off debt is a major one, and figuring out where to start can be the hardest part.

Keep it simple by focusing on your balances with the highest interest rates first, which will generally be credit cards. The same interest rate strategy applies when you're determining the best order to pay off your loans. Because this approach helps you save money on interest, you'll be able to free up cash to put toward other debts—and potentially achieve your debt-free goals sooner.