Using 0% APR Credit Cards for Holiday Shopping

I’m not a fan of incurring debt for holiday shopping. In fact, I’m very much against it. I believe that if you don’t have the money, you shouldn’t buy it.

However, there are exceptions to the rule.

Using 0% APR Credit Cards

Using a credit card that has 0% interest for a year or more can be a useful tool to purchase something you can’t currently afford. My husband and I used 0% cards after we bought our first house. We purchased new floors and a sprinkler system with 0% interest and paid off the balance during the promotional period.

A few years ago, we did it again. My husband wanted a new bike to use over the summer. He had a bonus payout coming, but not until a few months after the prime cycling season was over.

We decided to charge the bike to a 0% card. We made monthly payments until he got the bonus, and then we paid it off in full.

Over the holidays, Americans rake up on average more than $1000 of credit card debt. Some people take years to pay that off. If you have to incur debt for holiday spending, at least do it on a 0% APR credit card.

Keep in mind that you still must make minimum monthly payments even on 0% APR credit cards. Take your total balance and divide by the number of months with 0% interest to determine what monthly payments you should make to pay off your balance during the promotional period.

Best 0% APR Credit Cards

If you don’t currently have a credit card that is offering 0% APR, it’s not too late to get one for your holiday spending. Note: Credit card offers are constantly changing. Check out our Best Credit Card deals here.

Chase Freedom Unlimited currently has 0% for 15 months and 1.5X points on all purchases. The card comes with a $200 bonus after spending $500 in the first 3 months.

Capital One Quicksilver also offers 0% for 15 months, 1.5% cash back and a $150 bonus after spending $500 in the first 3 months.

Citi Simplicity offers 0% for 12 months AND 0% for 21 months on balance transfers.

Each of these cards has $0 annual fee. See New Card Approval Restrictions by Bank.

Bottom Line

Don’t go into debt for holiday shopping. But if you do, at least use a 0% APR card and pay it off during the promotional period.

CLICK HERE TO VIEW VARIOUS CREDIT CARDS AND AVAILABLE SIGN-UP BONUSES