San Diego, Calif. (PRWEB) March 14, 2013
The most savvy consumers know that the best way to pay for a big purchase (maybe a new flatscreen TV for March Madness) is with a cash back credit card that charges 0% interest on new purchases as part of its introductory offer.
Why? According to Creditnet.com, a leading authority on credit card offers and personal finance advice, there's no more lucrative way to shop big than with a cash back credit card. And zero interest on new purchases means that consumers can pay down that new purchase over time - usually six to 18 months - without accruing interest fees.
And while regular cash back rewards aren't likely to make a huge impact on the price of a big purchase, Creditnet Vice President Jason Bushey says it's the cash back cards with $100 sign-up offers that can really discount the cost of a big-ticket item.
"The best cash back cards include a $100 cash back incentive when you spend a certain amount over a specific period of time," said Bushey. "So if a cardholder spends $500 on one new purchase in the first month as a cardholder, that could qualify them for a $100 bonus and turn that $500 purchase into a $400 purchase with one swipe."
That said, Creditnet warns that consumers only make purchases with a credit card on items that can be paid back quickly, no matter the 0% introductory offer.
"The longer it takes to pay off a big-ticket item, the longer it has a negative effect on a consumer's credit utilization ratio," said Bushey. "Consumers always want amounts owed to remain relatively low compared to total available credit, which is why it's important to always pay down a debt quickly."
With those words of wisdom in mind, Creditnet today ranked the best cash back cards with 0% on new purchases. Creditnet factored in the length of a 0% interest intro period, the introductory and ongoing cash back reward value and current bonus programs when crafting its list.
Here are Creditnet's picks for the three best cash back credit cards with zero interest on new purchases:
This $100 cash back credit card from Citi® checks all the boxes for an excellent cash back card that also includes 0% interest on purchases. Cardholders pay no interest on new purchases (and balance transfers) for 12 months, the cash back program includes 5% cash back on eligible rotating categories when consumers enroll, and cardholders earn $100 cash back after $500 in purchases within the first 3 months of account opening.
Shoppers earn 1% cash back on all other purchases, and overall this is Creditnet's favorite cash back credit card to finance a big purchase.
2.) Chase Freedom® Visa
Another $100 cash back credit card Creditnet recommends is the Chase Freedom® Visa. Like the above Citi card, Chase will reward consumers that spend $500 or more within three months of account opening with a $100 cash back credit. The 0% intro period on new purchases and balance transfers is 15 months, and cardholders can earn 5% cash back on up to $1,500 in purchases made in rotating categories when they enroll.
Consumers earn another 1% cash back on all other purchases, making this another excellent cash back card in the long run too.
3.) Capital One® Cash Rewards - $100 Cash Back Bonus
Finally, the Capital One® Cash Rewards - $100 Cash Back Bonus is yet another credit card that rewards shoppers that spend $500 in purchases within the first three months with $100 cash back. The intro APR on purchases and balance transfers is zero, and shoppers earn 1% cash back on all purchases. While there are no rotating categories with bonus cash back to take advantage of, this Capital One® rewards cardholders with a 50% on the cash back earned every year.
Each of the above cash back cards with 0% interest on purchases can net users serious discounts on big-ticket items thanks to the sign-up bonuses attached to their respective intro periods.
Since 1995, Creditnet.com has served as an online authority for credit information, credit card comparisons and consumer credit advice. Creditnet hosts the web's oldest credit discussion blog - Credit Talk - and Creditnet is a HUB for credit news, weekly credit tips and credit card reviews.