Editor's Note: Please see the Citibank credit card section of CardWisdom for updated details on the offers mentioned in this article.
A few months ago, the idea of getting a 0% APR for 18 months was ludicrous. Banks cut back on 0% interest rates through much of 2009 and many just started offering 0% interest rates for 12 months. Last month, Citi upped its longest 0% interest rate on balance transfers and purchases to 15 months, three months longer than most banks offer, and as long as many pre-credit crisis 0% rates. A few days ago, they upped the offer to 0% for 18 months on both purchases and balance transfers. Getting the longest 0% APR on balance transfers and purchases isn't as straightforward as simply applying.
In the fine print of this offer, you can learn that Citi actually offers three introductory lengths. Consumers who presumably have impeccable credit card be approved and granted a 0% APR for 18 months. However, because the granting of 0% rates is based on a review of your applications and credit history, other applicants may not get this very long 0% rate. Citi doesn't reveal what it takes to get the best rate; they simply offer three rate tiers. As I mentioned, people with the best credit will get a 0% interest rate for a full 18 months. However, applicants that do not qualify for this deal will get a 0% APR for 12 months on purchases and balance transfers. This is still as good a deal as one can get, especially for balance transfers, as the balance transfer fee is a low 3%.
Unfortunately, there is a catch. Some applicants can get approved, but only offered a 0% APR for 7 months. And, in typical credit card company fashion, Citi credit cards don't provide any information about who will get this less than stellar 0% APR period. Presumably, people who just barely qualify will get this rate. This could mean someone with a 680-700 credit score or someone with a high debt to income or credit utilization ratio.
Ultimately, if you don't have perfect credit, its unclear how long your 0% interest rate will last. It is likely safe to bet that anyone with a 720 or higher credit score will get at least a 0% APR for 12 months. And, in all likelihood, anyone with a 770 or higher credit score will get a 0% for 18 months. But you won't know if you'll get the longest 0% interest rate until you apply. With such good rates, its definitely worth a shot. If you transfer $5,000 from a card with a 15% interest rate, you can save more than $1000 on interest during 18 months-about $400 more than you can save with a 0% APR for 12 months. That's a deal worth chasing. For more information and to apply online, please see the 0% APR credit card offers section of CardWisdom.com.
All information is presented as is and without warranty. Credit card offers change frequently, so please refer to the main section of CardWisdom for up to date offer details.
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