Citibank credit cards currently have the longest 0% rates for balance transfers.  The Citi Platinum card carries a 0% APR for 18 months on balance transfers and the Citi Dividend card carries a 0% APR for 15 months on balance transfers. Some Citibank credit cards carry 0% rates on purchases for 12 months, though not all cards carry intro rates on balance transfers.

Discover also offers a long 0% interest rate period on balance transfers that lasts for 15 months. However, the longest 0% APR on purchases offered by Discover is only 9 months.

These balance transfer offers are great for consumers looking to save money on interest. However, there are a lack of credit card applications carrying a 0% on purchases for more than 12 months. The likely reason why 0% rates on balance transfers last significantly longer than those on purchases is that balance transfers carry fees of 3 to 5% which allows credit card companies to generate revenue when transfers are made.

In the coming months, it is more likely that the longest 0% APR credit card offers will decline. The present length of 0% offers is higher than it was before the credit crunch. This increase in the 0% credit card deals may be temporary, as banks look to add new customers to replace the ones they angered last year when they raised interest rates and cut credit limits.

Anyone who could benefit from a 0% APR credit card should do so while the offers remain the longest in recent history. Once these deals are decreased, it is unlikely that similar offers will take their place.

Today, most 0% credit card offers either last the full advertised amount or are advertised with multiple 0% rates.  For example, you may now see credit card advertise a 0% APR on balance transfers for 6 or 12 months, based on a review of your credit.  These are not the best 0% credit card offers, as the rate you receive may not be the longest advertised rate.

However, because credit card companies are more clearly disclosing how long 0% APR periods last, it has become easier to spot the best credit card applications with 0% interest rates: simply stick to cards that offer the same promotional interest rate to all approved applicants.

Today, the key thing to look for when comparing 0% APR credit cards is whether the 0% interest rate applies to purchases, balance transfers or both.  In the past, most credit card offers provided a 0% interest rate for purchases and balance transfers that lasted the same amount of time. Recently, a number of credit card companies have extended extremely generous balance transfer offers that last as long as 18 months. However, the 0% period for purchases on many of these deals can be as short as six months or possibly nonexistent.

Thus, the key to finding the best 0% APR credit card offer is to isolate a card that offers the longest 0% period for the purpose you intend to use it.  If you are looking to transfer balances and save money on interest, ignore the purchase intro rate and simply use your new card for balance transfers.  If, on the other hand, you intend to use your card for new purchases, look for a low APR credit card that offers a 0% APR on purchases for 12 months, which is currently the longest such offer among the major credit card companies.

Because of the CARD Act, understanding credit card offers has gotten significantly easier.  Just be sure to pay attention to the fine print so you can get the best 0% offer for your particular needs.  For more information, please see the 0% APR credit card section of Credit Card Depot.

When you apply for a 0% credit card that advertises a 0% rate for up to X months, special caution must be taken if you intend to use that card for balance transfers.  Specifically, if you are planning to transfer a balance, do not do it online.  Simply wait until your credit card arrives in the mail and transfer the balance when you can review the terms granted to you.  If you were lucky enough to get a 0% for 12 months, then go ahead and transfer your balance.  However, if you only got a 0% APR for 6 months, you may want to consider applying for a new credit card.

The same pricing strategies used to determine 0% rates are also used with long term interest rates.  In fact, multiple long term APRs are the rule, rather than the exception.  Generally, these rates are advertised with the verbiage “as low as,” and the lowest rate can be as much as 50% lower than the rate you actually get.  One current credit card offer advertises rates as low as 13.24%, but applicants can get a credit card in the mail with a 24% interest rate.  That’s quite a difference.

Ultimately, both the 0% and long term interest rate will be based on your credit profile regardless of the credit card you apply for.  However, some credit card companies offer better chances at getting low rates than others.  When applying for a new credit card, look for one that offers an APR range, i.e. 11.99-18.99%, rather than APR tiers, such as 13.24%, 17.24%, 24.24%.  With the former, you are likely to get a rate tailored more closely to your credit profile.  With the latter, you will get the best rate you qualify for, and one or two credit score points can turn into a 5% interest rate difference.

For additional information on current offers, please see the 0% APR credit card section of Credit Card Depot.

During this summer, credit card companies not only cut the length of 0% APR credit card offers, but also increased long term interest rates.  The latter increases occurred despite a stabilization in the Prime Rate, which hoovers near all-time lows.  Recently, credit card companies have begun offering 0% for 12 month deals, though these special introductory rates are generally reserved for customers with the best credit.  Customers who don’t meet new, stricter approval standards are likely to only receive 0% APRs lasting about 6 months, if they can get approved for new credit cards at all.

To make matters worse, the final stages of the new credit card laws are slated to take effect in February, and many credit card companies may have to further reduce the length of 0% APR credit card offers to insure profitability under the new restrictions.  While some have hailed the new credit card laws as a positive for consumers, the reduction of length in 0% balance transfer and purchase rates is likely a direct result of these new rules.  Should the economy fail to recover sooner and credit card default rates continue to increase, consumers will not only be missing 0% for 15 month deals, but all 0% deals. 

Fortunately, February is still a few months away and credit card companies continue to offer 0% rates.  Unfortunately, getting a 0% APR may become a memory by this time next year.

During the summer, when getting a 0% APR for 1 year was a near impossibility, it appeared as if these types of credit card offers were doomed.  Banks were raising interest rates, cutting credit limits, and closing accounts at breakneck speed.  However, now that some of the dust has settled, credit card companies are looking to lure in new customers again.  And the most effective method in their playbook is the 0% APR credit card.

What makes 0% credit card offers so appealing to credit card companies is the fact that they only last for a set amount of time.  During that time, they expect (hope?) that customers will run up bills that they will repay over time at significantly higher interest rates.  This is more true today than in the previous few years, as credit card companies are charging significantly higher long term interest rates despite an historically low prime rate.

Unfortunately, 0% credit card offers may be legislated into oblivion if additional credit card rules are passed, or if the implementation of the new credit card laws, slated for February of 2010, forces credit card companies to rethink their strategies.

Nevertheless, the current availability of 0% credit cards will help consumers who have been slapped with interest rate increases utilize balance transfers to escape rates as high as 29.99% imposed by Citibank recently.  And it will help consumers avoid interest on holiday purchases they can repay during the 0% introductory period.  Ultimately, however, anyone using a 0% credit card needs to be careful not to fall into the banks trap and run up credit card debt while the interest rate is low and repay that debt when the interest rate skyrockets.