Credit card rates continue to hit extraordinary extremes — ranging from 0% for those consumers with excellent credit all the way up to the 36% range for those looking for second chances at rebuilding their credit.

After 10 rapid-fire rate hikes by the Federal Reserve in more than a year, the average rate on credit cards has soared to 20.58%, up from 17.01% a year ago. The average rate was even lower at 16.28% back in February 2022, before the first Fed rate hike hit.

That 36% rate? It's part of a Premier Bankcard that starts with an ultra-low credit limit — $200 to $700 — and is being marketed to consumers who want to rebuild their credit scores back up from the 500-plus level. Annual fee: $50 to $125, based on creditworthiness. It has a list of other steep fees, too.

Annual interest rates or APRs on retail cards ballooned to the low 30% range, too. The APR for Macy's store accounts was 31.74% in early July. The Nordstrom card was 30.9%. Both rates will go up if the prime rate goes up again, which could happen as soon as July 26 should the Federal Reserve boost short-term interest rates as some expect.

0% remains real tempting

One might not dream that you'd spot any 0% credit card offers lately. But 0% promotional rates are still part of the picture, much like those 0% to 3% incentives being offered by automakers to move select cars and trucks during the summer sales season.

"0% offers are surprisingly common these days, on balance transfers as well as new purchases," said Ted Rossman, senior industry analyst for CreditCards.com and Bankrate.com.

"I say surprisingly because of the rising rate environment," Rossman said. "I know that 0% is an eye-popping marketing figure — more than, say, a 3% or 5% balance transfer or intro APR."

Even so, Rossman still would have expected at the very least that 0% offers would only apply for a few short months or that transfer fees would have gone up.

"But neither has happened," Rossman said.

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He attributes the robust offerings for 0% promotional rates on credit cards to the fact that consumer spending continues to be strong and delinquencies are still pretty low. Credit card delinquencies have gradually been going up since their lows in 2021, showing some particular stress among younger consumers.

Credit card balances remained flat at $986 billion in the first quarter of 2023, which went against the trend for balances to typically fall in the first quarter, according to a report by the Federal Reserve Bank of New York.

Going from 0% to nearly 30%

What's important for consumers to realize is that 0% can be a loss leader for the card issuers, who know that they'll make more money if you don't pay off that balance in full before the 0% expires and the higher rate kicks in.

Take a Discover it card with a 0% intro offer for 15 months for purchases and balance transfers. The balance transfer must post to your account by Oct. 10 to qualify. The online disclosure notes: "After the intro APR expires, your APR will be 16.99% to 27.99% based on your creditworthiness. This APR will vary with the market based on the prime rate."

If your credit card rate zooms from 0% to nearly 30% in a bit more than a year, you're facing a true financial squeeze if you're carrying a high balance on that card.

"If you pay late at all — even just a day late, or a few hours even, you can lose your 0% term," Rossman said. It's essential to make at least the required monthly minimum payment on time.

After the 0% term, for example, Rossman noted that the Wells Fargo Reflect charges a variable APR between 17.99% and 29.99%, depending on creditworthiness. When the 0% offer ends, the Citi Simplicity card's rate ranges from 18.99% to 29.74% and the Citi Diamond Preferred charges 17.99% to 28.74%.

For card issuers, Rossman said, "the real sweet spot is if people carry balances but avoid default, and an increasing number of cardholders are balance-carriers that still pay on time."

He noted that Citi mentioned during an earnings call a few years ago that about half of these balances on 0% cards are not paid in full by the time the clock runs out.

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Many cards with a 0% promotion, Rossman said, charge above average annual percentage rates or APRs once the intro period ends. Carefully read all the terms and conditions.

Who qualifies for a 0% promotion?

No surprise here, you'd need good-to-excellent credit — say a credit score of 670 or better — to qualify for a 0% offer. "Most people have that, since the average FICO score is 716," Rossman said.

Seeing a 0% offer pop up in your mail is a good sign, too, but it's not a guarantee that you'd qualify to get that card, either. The Bankrate.com site lists offers but also a box to help you predict your odds for getting approved, too. It’s a free estimator that involves a soft credit check. Not a guarantee.

What you don't want to do is automatically assume that you'd qualify for 0% and then be able to transfer as much money off another high-rate card as you'd like. You might be approved for a 0% card but then only be approved to transfer $2,000 instead of $5,000. Much can depend on your credit score, your income, how much you owe and the lender’s risk tolerance.

Pay off what you owe before zero goes to double-digits

Fortunately, some 0% offers continue to run for nearly two years.

The longest 0% offers on the market in July, Rossman said, are running 21 months. These include ones offering 0% interest on balance transfers, such as the Wells Fargo Reflect, BankAmericard, Citi Simplicity and Citi Diamond Preferred. The Wells Fargo Reflect and the BankAmericard, Rossman said, also offer 0% for 21 months on new purchases. The Citi Simplicity and Citi Diamond Preferred have 12-month 0% periods on new purchases.

Consumers who transfer balances need to understand that the card will charge a fee that can range from 3% to 5% of the amount being transferred. If you're transferring a balance of $2,000 to that new card, you'd pay $100 in fees if the rate is 5%.

If you pay off the debt during that 0% intro period, you would save money in interest charges.

"My top tip is to divide what you owe by the number of months in your 0% term," Rossman said, "and try to stick with that level payment plan. It’s hard to hit a moving target, so I’d advise against adding new purchases."

Simple math: If you owe $4,200 on that balance transfer, you'd want to pay $200 a month for the next 21 months to make sure the bill gets covered.

Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor.

This article originally appeared on Detroit Free Press: How a credit card offer can zoom from 0% to 30% before you know it