0% APR Credit Cards

Compare Top 0% APR Credit Cards

An annual percentage rate or APR is the rate at which interest is calculated on your business credit card. Depending on your provider, the APR may vary with every transaction and in the initial days of your card usage. Some providers even offer 0% annual APR depending on your credit profile. Below we’ve provided recommendations on top 0% APR cards.


A Guide to Annual Percentage Rates or APR

APRs can vary with transactions

As already mentioned, APRs can vary with each transaction that you make, so you can have several rates associated with just one business credit card. Generally, a different APR is applied for percentages, and another is applied for balance transfer. Even with time, APRs can vary. They are often zero in the first 6, 12 or 18 months of usage, which are known as the inertest free or zero interest periods. Sometimes, these periods are also offered form promotional purposes and last for around a week or two. Try to make use of these and you will be able to manage your debt.

APRs can either be variable or non-variable

A variable APR depends on a set value which is mentioned by your credit card provider and a reference rate, which is called the index. Often, this is the US prime rate. An adjustable APR is the sum of these two rates. The prime rate can increase and decrease any time, and your offered rates will also change with it. You should go through the terms and agreements to get more details on these.

A non-variable APR does not depend on the prime rate, but may not always be the same. Business credit card providers reserve the right to change this rate as and when deemed necessary. For instance, your APR can change in accordance to the market conditions. It can also change on the basis of the manner in which you make your payments and manage your credit card. In all these situations, you will be notified before any changes take place.

Interest is calculated on a monthly basis

Interest is incurred on all your purchases every month. The lengths of all months are not the same, so business credit card providers make use if the Daily Periodic Rate or the DPR to determine the interest amounts. The DPR can be obtained when the APR is divided by the total number of days in a year. This resultant DPR value is then multiplied by your balance amount and the number if days in a billing cycle, which gives you the interest amount

APR may be applied to balances in a different manner

Your daily balance on your business credit card may vary and so the inertest charges can be calculated by any number of methods. The most common of these are the adjusted balance and the average daily balance.

Adjusted balance can be determined by deducting the balance of the previous month from the total. Average daily balance is determined by summing up the balance of every single day in a month and dividing it by the number of days in that specific month. Any of these balance amounts can be used for calculating interest.