It’s common for credit cards to offer an introductory period of 0% annual percentage rate for new cardholders, often 12 to 21 months. But you don’t always have to apply for a new credit card to get a 0% APR offer, especially if you’re interested in a balance transfer.
Here’s how to access a 0% APR offer on your existing credit card. You’ll also want to review strategies to improve your approval odds and find alternatives if you don’t receive the offer you want.
[Read: Best Credit Cards.]
Do Credit Cards Have 0% APR Offers for Existing Customers?
Yes, credit cards sometimes have 0% APR offers for existing customers. When you take a 0% APR offer as an existing customer, you don’t have to apply for a new credit card.
“Normally, credit card issuers limit these teaser rates as a tool to attract new customers to their fold,” says John Ulzheimer, a credit expert who has worked for FICO and Equifax. “However, they can also be an effective retention tool used to incent existing cardholders to stick around and to also redistribute their credit card usage.”
You’re more likely to get a 0% APR for a balance transfer on an existing credit card than you are for a new purchase. Some issuers offer interest-free, pay-over-time plans or loans against your card’s credit line, which tend to be cheaper than cash advances or your purchase APR.
How to Get a 0% APR Offer on Your Card
Many issuers offer interest-saving promotions to current cardholders, but you have to ask for them. Be prepared to negotiate if necessary, though some issuers may give you a break just for asking.
“Generally, consumers may qualify for 0% APR if they’ve been with the same credit provider for a while and have not missed paying their bills on time,” says personal finance expert Barry Choi, of the Money We Have blog. “Offers change all the time, so if 0% APR is something you’re looking for, you should call in occasionally to see if an offer is available.”
Contact Customer Service
One way to request a 0% offer on your card is to contact customer service by chat, email or phone. Ask if there are any offers available for your account.
If there aren’t any, you might need to seek a retention offer to get a 0% APR offer. To snag a retention offer, tell a customer service agent that you want to close your account and ask to be transferred to the retention department. Retention agents may have more power than customer service agents to give you the offer you want so you’ll keep your account open.
[Read: Best Rewards Credit Cards.]
Check for Offers Online
You may be able to find offers by logging into your online account. For instance, Chase cardholders may see offers for pay-over-time options, credit line loans and balance transfers on their online account dashboard.
With a pay-over-time product, you can select qualifying purchases and enroll them in a plan with no interest and fixed payments for a monthly fee. Sometimes, issuers offer no-fee promotions, so you won’t pay interest or fees. That effectively gives you a no-interest offer for the plan period. However, these no-fee plans are generally only available for a limited time and may be reserved for specific offers.
Issuers may also offer a loan from your card’s credit line. While these typically don’t have 0% APR, you can expect the rate to be lower than your regular APR. Think of it as a personal loan using your card’s available credit. You’ll make fixed payments over the loan’s term — 12 to 48 months is typical — at an APR that’s generally comparable to personal loans. The benefit of these offers is that you don’t have to apply for a new loan to get the funds you need.
Another offer you may find in your online account is a balance transfer. You can look for these offers by checking under your account services. You may have multiple offers available or none. Check the details and compare total costs, as not all offers are 0%. For example, you might have a 0% APR balance transfer offer that lasts 11 months, vs. a 1.99% APR on balance transfers for 18 months.
Tips for Attracting 0% APR Offers
You’ll need to be an attractive customer to get the best offers on an existing credit card. You should wait until you’re firmly established before you ask for a 0% APR offer. For example, the general rule with seeking a credit line increase is to wait at least three months before requesting one — and a 0% APR offer is a similar ask. If you plan to ask for a retention offer, you might want to wait until you’ve had the card a full year, especially if you’re due to pay an annual fee.
You also may need good-to-excellent credit to get approved for a 0% APR offer on an existing credit card. Use the account responsibly, paying on time and not using too much of your available credit.
“You’ll have to be in good standing with the card issuer, and you really need average or better credit scores, which means into the 700s,” says Ulzheimer.
If you’re speaking with customer service, you might explain how you want to use the 0% APR offer, whether to make an upcoming major purchase or pay off debt.
[Read: Best Low-Interest Credit Cards.]
What to Do if You Can’t Get 0% APR on Your Card
If you don’t get the 0% APR offer you’re looking for, you still have options. You can apply for a new 0% APR card, as these offers are more widely available to new cardholders and may have better terms, such as longer promotional periods and lower balance transfer fees.
Another option is a loan, such as a personal loan or a home equity loan. Like a new 0% APR card, this option requires you to establish a new account with a credit check. However, loan interest rates are likely to be lower than the regular APR on a credit card.
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Can You Get a 0% APR on an Existing Credit Card? originally appeared on usnews.com
