A 0% APR credit card on new purchases comes with a promotional period during which you pay no interest on eligible purchases. MoneyGeek has used a specially created ranking algorithm to narrow down on the best 0% interest credit cards so you can choose one with ease.
As with all other types of credit cards, zero-interest credit cards let you make purchases on credit, which you can then repay by making at least minimum monthly payments. When you carry forward balances from one billing cycle to the next with a regular card, the outstanding amount accrues interest. However, with a card that comes with a 0% APR offer on purchases, you get to pay no interest for a predetermined time. Once this period ends, you need to start paying interest toward any outstanding promotional balance.
Selecting a credit card with 0% APR on purchases requires paying attention to different aspects. In arriving at the best of the lot, we’ve taken note of factors such as annual fees, standard APRs that apply after the promo period and additional features. The information we put forth is through charts, tables, tips and expert advice.
The best 0% APR credit cards require applicants to have good to excellent credit. If you’re someone who has just gotten on the path to building your credit history, know that you have other options. While you might not get the best card in the world straightaway, you can definitely work your way there by relying on our tips and selections.
We have compared numerous alternatives to arrive at the best 0% APR credit cards. We have addressed aspects such as other promotional offers, APRs that apply when the intro period ends, annual fees, rewards and added perks.
1
Best 0% APR Credit Cards
Capital One SavorOne Rewards Card - This card comes with a 0% APR offer on purchases and balance transfers for 15 months. It charges no annual fees. Cardholders get to earn category-based cash back of up to 3%.
American Express Blue Cash Everyday Card - This card from American Express charges no interest on purchases for the first 15 months. It offers category-based cash back of up to 3% and comes with no annual fees.
Chase Freedom Unlimited Card - With this card, you get a 0% intro APR offer for 15 months, which applies on new purchases and balance transfers alike. You pay no annual fees and stand to earn up to 5% cash back on category-based spending.
2
Best 0% APR Balance Transfer Credit Cards
Citi Double Cash Card - This 0% interest credit card from Citi charges no interest on balance transfers for the first 18 months. However, a balance transfer fee applies. This card comes with no annual fees. It lets you earn up to 2% as cash back — 1% when you make purchases and 1% when you make timely repayments.
Citi Diamond Preferred Card - This card comes with a 0% APR offer on balance transfers for 21 months. On purchases, the 0% APR offer applies for 12 months. You need to pay a balance transfer fee. There is no annual fee.
U.S. Bank Visa Platinum Card - This 0% credit card comes with a 0% APR offer on balance transfers and purchases for 20 months. A balance transfer fee applies. You pay no annual fees.
American Express Blue Business Plus Credit Card - You can use this American Express card to pay no interest on purchases for the first 12 months. This card comes with no annual fees. It lets you earn 2x reward points on the first $50,000 you spend on purchases each year.
Chase Ink Business Cash Credit Card - This no-annual-fee credit card from Chase comes with a 0% APR offer on purchases for the first 12 months. It lets you earn up to 5% cash back on category- and threshold-based spending.
Capital One Spark Cash Select Card - This Spark Cash Select Card for Good Credit comes with a 0% introductory APR offer on purchases for the first 12 months. It charges no annual fees and offers 1.5% cash back on all business purchases.
Our experts have selected the best no-interest credit cards after accounting for all their pros and cons. For example, if a card comes with an extended promotional period, we inform you about it at the start.
Best 0% APR Credit Cards
Some of the best 0% APR cards come with promotional periods of 15 months or more. Several such cards let you earn rewards or cash back. The top alternatives tend to come with no annual fees as well. As long as you pay off your balance before the end of the promotional period, you pay no interest. You might consider using such a card to make an expensive purchase that you plan to pay off within a stipulated time frame.
FEATURED
Capital One SavorOne Rewards
A great no annual fee card that comes with rewards
15 monthsAPR Offer Duration
$0Annual Fee
3% Cash Back*Rewards Rate
Good-ExcellentCredit Needed
We love the no-annual-fee Capital One SavorOne Rewards card because it gives you the ability to earn unlimited 3% cash back across different categories and 1% cash back on all others. New cardholders stand to earn a $200 bonus, provided they meet simple spending criteria. Being able to redeem your cash back in multiple ways is a definite plus.
An introductory 0% APR offer on purchases and balance transfers for the first 15 months may lead to reasonable savings.
Using this card during your international travels is perfect because it comes with no foreign transaction fees.
Cardholders also stand to benefit through complimentary travel accident insurance and travel assistance services.
Pros
No annual fees
0% APR on purchases and balance transfers for the first 15 months
Earn 3% cash back on entertainment, dining, popular streaming services and at grocery stores
Earn 1% cash back on all other purchases
Get 8% cash back when you book tickets through Vivid Seats until January 31, 2023
Earn a $200 cash bonus if you spend $500 on purchases within the first three months
Earn unlimited cash back that does not expire for the life of the card
Redeem cash back in the form of a statement credit or a check
You may also use your cash back rewards through PayPal and Amazon.com
Pay no foreign transaction fees
Get complimentary extended warranty, travel accident insurance, 24-hour travel assistance services and concierge services
Get protection against unauthorized use of your card through $0 fraud liability
Get special access to premier culinary experiences as well as music and sporting events
Cons
Cash advance fee
Balance transfer fee
$0 annual fee
0% intro APR on purchases and balance transfers for the first 15 months
Unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores
Unlimited 1% cash back on all other purchases
Get a $200 bonus after spending $500 on purchases in the first three months
Redeem your cash back as a statement credit, as a check or through Amazon.com or PayPal
Credit rating-dependant APR on purchases
No foreign transaction fees
Complimentary travel accident insurance and access to 24-hour travel assistance services
Complimentary 24-hour access to concierge services
Purchases made using card protected by extended warranty
$0 fraud liability to safeguard against fraudulent use
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no-annual-fee cash back card with 0% intro APR on purchases
15 monthsAPR Offer Duration
$0Annual Fee
1-3% Cash Back*Rewards Rate
Good-ExcellentCredit Needed
We love the American Express Blue Cash Everyday Card because it comes with high category-based cash back rates and charges no annual fees. Its 0% APR offer on purchases remains valid for 15 months.
You stand to earn a bonus statement credit of $250 if you spend at least $2,000 on purchases in the first six months. Getting additional cards gives you the ability to earn increased cash back.
You pay no fees if you use the Buy Now, Pay Later Plan It feature during the first 15 months. Other benefits come in the form of access to American Express Experiences, car rental loss and damage insurance, and fraud protection.
Pros
$0 annual fee
Intro 0% APR on purchases for 15 months from account opening
Spending-based welcome bonus of $250 back
Up to 3% cash back
Cons
Foreign transaction and cash advance fees
Penalty APR might apply in case of late/returned payments
No annual fees
0% APR on purchases for 15 months from account opening
Variable APR of 13.99% to 23.99% applies on purchases after the intro period
Spend $2,000 on purchases in the first six months to earn $250 as statement credit
3% cash back on groceries at U.S. supermarkets, on up to $6,000 per year
2% cash back on gas at U.S. gas stations and at select U.S. department stores
1% cash back on all other purchases
No fees for Buy Now, Pay Later Plan It plans created in the first 15 months, then a fee of up to 1.33% applies per plan
Get peace of mind when you rent a vehicle because of complimentary car rental loss and damage insurance
Fraud protection offers safeguard against possible misuse of your card
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no annual fee card that lets you earn unlimited cash back
15 monthsAPR Offer Duration
$0Annual Fee
1.5-5% Cash Back*Rewards Rate
ExcellentCredit Needed
We're in love with the Chase Freedom Unlimited card because it comes with no annual fee and gives you the ability to earn unlimited rewards. Depending on your spending habits, you stand to earn up to 5% cash back on your purchases. Another plus is that the cash back rewards you earn don't expire for the life of the card.
An intro 0% APR on purchases for the first 15 months enables you to make big-ticket purchases without having to pay interest — provided you repay the entire amount during the intro period. Cardholders can also eliminate interest on existing debt with a balance transfer. You'll enjoy 15 months with no interest to pay off your transferred balances. After the promo period expires, you might benefit by getting a low ongoing rate depending on your credit score.
Complimentary purchase and travel protection might come in handy in various scenarios, such as if you miss your flight or an item is damaged or stolen after you buy it.
If you use Lyft to get around, you stand to benefit even more — by earning 5% cash back until March 2022.
Pros
No annual fees
0% APR offer on purchases or balance transfers
Intro bonus cash back offer
Earn up to 5% cash back on category-based spending
Earn unlimited 1.5% cash back on everything else
Cash back rewards never expire
Redeem rewards for cash back, for gift cards, for travel or through Amazon.com
Get complimentary purchase and travel coverage
Cons
Foreign transaction fees
Cash advance and balance transfer fees
Penalty APR may apply in case of late and returned payments
Pay $0 annual fee for the life of your card
Pay no interest on purchases and balance transfers for the first 15 months
Travel purchases through Chase Ultimate Rewards earn 5% cash back
For the first year, earn 5% cash back on grocery store purchases, excluding Target and Walmart (on up to $12,000 in purchases)
Spending at restaurants, on takeout and through other eligible delivery services, as well as drugstore purchases, earn 3% cash back
All other purchases earn 1.5% cash back
You get to earn unlimited cash back rewards, and they don't expire as long as your account remains active
Different ways to redeem your cash back include receiving a statement credit, withdrawing it through a direct deposit, using it to get gift cards or using it to pay for travel
Zero liability protection, 24/7 fraud protection, purchase protection and extended warranty protection are in place to provide extra peace of mind
Feel better when traveling by knowing that you have access to travel and emergency assistance services, trip cancellation/interruption insurance and auto rental collision damage coverage.
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
The best balance transfer cards tend to come with 0% APR offers that stay in place for 18 months or more. Using a balance transfer card makes sense if you wish to transfer existing balances from high-interest cards and pay them off within a given time frame. Keep in mind that you might need to pay a balance transfer fee, which can be up to 5% of the transferred amount.
FEATURED
Citi Double Cash Card
A great no annual fee card that offers 2% cash back
18 monthsAPR Offer Duration
$0Annual Fee
2% Cash Back*Rewards Rate
ExcellentCredit Needed
We think the Citi Double Cash Card is a great no-annual-fee card because it lets you earn an unlimited 2% cash back on purchases across all categories. You'll receive 1% on your purchases and 1% when you pay down your balance. You may redeem your cash back in the form of a statement credit, a direct deposit, a check or even by converting it to points.
You may look forward to savings by using the card's 0% intro APR offer on balance transfers for 18 months if you wish to pay off existing balances from high-interest cards.
Features such as 24-hour fraud protection, identity theft solutions, $0 liability on unauthorized charges and the lost wallet service are in place to safeguard cardholders' interests.
All cardholders get access to Citi Entertainment, through which they may purchase presale tickets.
Pros
Pay no annual fees
Pay 0% APR on balance transfers for the first 18 months
Earn up to 2% cash back on purchases across all categories
No caps on earning cash back
Options to redeem cash back rewards include a statement credit, direct deposit, check or conversion to points
Purchase tickets to scores of events, including presale tickets, through Citi Entertainment
Increased account safety through 24-hour fraud protection and $0 liability on unauthorized charges
Complimentary Lost Wallet service and identity theft solutions
Cons
Cash back rewards expire if you do not earn any cash back from purchases or payments for those purchases in a 12-month period
Foreign transaction fees
Cash advance fees
Balance transfer fees
Penalty APR applies in case of late and returned payments
$0 annual fees
Intro 0% APR offer on balance transfers for the first 18 months
2% unlimited cash back on purchases — 1% on purchases and 1% on payments
Redeem cash back rewards as a statement credit, a check or a direct deposit
Converting cash back rewards to Thank You points may provide even greater value when transferring to airline or hotel partners
Get access to presale tickets via Citi Entertainment
24-hour fraud protection, $0 liability on unauthorized charges and identity theft solutions provide added peace of mind
Get emergency cash through the Lost Wallet service
Foreign transaction fees apply on international transactions
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best balance transfer card for immediate transfers
18 monthsAPR Offer Duration
$0Annual Fee
NoneRewards Rate
ExcellentCredit Needed
Citi's Diamond Preferred Card is an effective balance transfer solution. A 0% APR applies on balance transfers for 21 months, from the date of the first transfer. The card also comes with a 0% APR offer on purchases for 12 months.
Afterward, you’ll face a variable APR based on your credit score. This basic card limits your ability to make use of the balance transfer offer after four months, so you’ll need to use this card quickly to take advantage of its benefits.
With that in mind, this can be a fantastic balance transfer card if you have a specific financial goal in mind and if you want to benefit from Citi’s other deal-sweeteners, including special tickets to events like concerts or dining experiences and free FICO score access.
All told, this simple balance transfer card is quick to grasp and easy to use to its full extent, making it a particularly good choice for cardholders that don’t like a lot of complex rules or bells and whistles.
Pros
Long 0% APR introductory term
No annual fees
Free access to FICO score online
Special access to Citi-branded tickets to events, etc.
Cons
Limited time to make balance transfers
No other significant rewards
Balance transfer fee of 5% of each amount transferred or $5 minimum, whichever is greater
0% APR on balance transfers for 21 months and 0% APR on purchases for 12 months, then a variable APR of between 13.74% and 23.74% based on your credit
Enjoy Citi Entertainment rewards and tickets upon making your account
Free FICO score access can be found through your online account’s portal
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best balance transfer credit card for short-term debt repayment
20 monthsAPR Offer Duration
$0Annual Fee
NoneRewards Rate
Good-ExcellentCredit Needed
The U.S. Bank Visa Platinum Card is an excellent option for people who wish to pay no interest on purchases and balance transfers for an extended duration because this card's 0% APR offer stays in place for the first 20 months. After the intro period, a creditworthiness-based interest rate applies.
You pay no annual fees for the life of the card. You may use its complimentary cell phone protection in case you lose or damage your phone. Fraud protection safeguards you against possible misuse of your card.
If you're looking for a card to pay off high-interest credit card debt through a balance transfer within 20 months, this card might work well for you.
Pros
No annual fee to increase your expenses
Excellent intro APR period for purchases and balance transfers
Comes with cell phone insurance
Flexible bill payment dates
Cons
Foreign transaction and cash advance fees
No rewards
0% APR for 20 months after account opening applies on purchases and balance transfers
Variable 14.49%–24.49% APR after the introductory period
Balance transfer fee is 3% of the transfer amount or $5 minimum, whichever is greater
Up to $600 cell phone protection against theft or damage, provided you pay your monthly cellular bill with this card
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Business credit cards with 0% APR offers tend to be focused on purchases. Most cards do not offer 0% APR on balance transfers. When they do, the best 0% APR business credit cards typically come with promotional periods of no more than 12 months. Exceptions include the U.S. Bank Business Platinum Card that comes with a 0% APR on purchases and balance transfers for 18 months and the U.S. Bank Triple Cash Rewards Visa Business Card through which you get a 0% APR on purchases and balance transfers for 15 months.
FEATURED
American Express Blue Business Plus Credit Card
Great no-annual-fee card for earning rewards on business spending
12 monthsAPR Offer Duration
$0Annual Fee
2 Miles per $1*Rewards Rate
Good-ExcellentCredit Needed
We like the Blue Business Plus Credit Card from American Express because it gives businesses the ability to earn rewards without having to pay any annual fees. This card comes with an intro 0% APR offer on purchases for 12 months. In addition, you may also get employee cards for free.
You’ll earn 2 points per $1 on all purchases up to a total of $50,000 per year, after which you’ll earn 1 point per $1. Redeeming your points is easy. You may use them to make purchases through popular online platforms, to book or upgrade travel and to buy gift cards. Points can also be transferred to airline or hotel partners for additional value.
Finally, assigning an account manager and using accounting-related tools provided by American Express can help ease your expense management woes.
Pros
No annual fees
0% intro APR on purchases
Earn 2x reward points on spending of up to $50,000 per year
Free employee cards
Can assign an account manager
Download interactive year-end summaries
Use Vendor Pay to improve business cash flow
Purchase protection
Cons
Penalty APR applies when you make a late payment
Foreign transaction fees
Balance transfer fees
There’s a minimum required to redeem points
Pay no annual fees for the life of the card.
Save money on interest by using the 0% intro APR offer on purchases for 12 months.
Earn 2x reward points for the first $50,000 you spend on purchases each year. Earn 1x after your spending exceeds this limit.
Redeem points for travel booked through American Express Travel, purchases via select online merchants or gift cards.
You may also transfer your reward points to different airline or hotel loyalty programs.
Get free employee cards and set individual spending limits.
Improve cash flow by using your card to pay bills via Vendor Pay.
Safeguard purchases made using the card through extended warranty and purchase protection.
Get protection when you or your employees rent cars through car rental loss and damage insurance.
Get access to American Express Experiences and purchase pre-sale tickets for various events.
Use the American Express Business App and Connect to QuickBooks tools to simplify transferring spending-related data to your existing accounting system.
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Fantastic card for earning rewards on office supplies
12 monthsAPR Offer Duration
$0Annual Fee
1-5% Cash Back*Rewards Rate
Good-ExcellentCredit Needed
We love the no-annual-fee Ink Business Cash Credit Card because it lets you earn 5% cash back on the first $25,000 spent per year when you shop at office supply stores as well as for your phone, internet and cable subscriptions. Spending at gas stations and restaurants comes with up to 2% cash back. All other purchases give you 1% cash back.
Redeeming your rewards through the Chase Ultimate Rewards program is simple. You may redeem your rewards for cash back, gift cards, travel, merchandise and more.
Cardholders stand to earn an introductory $750 bonus if they spend at least $7,500 in the first three months. An intro 0% APR offer applies on purchases for the first 12 months.
Additional employee cards come at no extra cost. All cards linked to the primary account benefit through fraud and purchase protection.
You may also look forward to simplified business accounting by integrating your credit card account with your bookkeeping software.
Pros
No annual fees
Generous introductory cash back and APR offers
Redeem points for cash, travel, gift cards and more
Points don't expire for the life of the account
Free employee cards
Complimentary purchase and travel protection
Cons
Foreign transaction fees
Balance transfer and cash advance fees
Get a $750 cash back bonus if you spend $7,500 on purchases in the first three months
Benefit through a 0% intro APR offer on purchases for the first 12 months
Pay no annual fees for as long as your account remains active
Get 5% cash back on the first $25,000 you spend on purchases at office supply stores, as well as on internet, cable and phone services every year
Get 2% cash back on the first $25,000 you spend on purchases at restaurants and gas stations every year
Get 1% cash back on all other purchases
Your rewards remain valid for as long as you keep using your card
Set individual spending limits for employee cards
All cardholders get access to extended warranty, purchase protection, baggage insurance, car rental loss and damage insurance and roadside dispatch
Fraud protection safeguards you against fraudulent transactions
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no-annual-fee business card with unlimited 1.5% cash back
NoneAPR Offer Duration
$0Annual Fee
1.5% Cash BackRewards Rate
Good-ExcellentCredit Needed
We recommend the Capital One Spark Cash Select Card for Good Credit to people who are looking for an option that comes with 1.5% cash back on all your business purchases.
Using this card outside of the U.S. makes sense as it does not charge overseas transaction fees. Employee cards come at no extra cost. Getting to select your own due date is a plus.
Other benefits include $0 fraud liability, downloadable purchase records, year-end summaries, extended warranty and complimentary roadside assistance.
Pros
$0 annual fee
Flat cash back across all categories
No foreign transaction fees
Free employee cards
Cons
Penalty APR might apply if you make a late or returned payment
Cash advance fees
No annual fees
1.5% unlimited cash back on all purchases
No added fees for employee cards with customized spending limits
Ability to assign account managers
Purchase records made available in Quicken, QuickBooks and Excel
$0 fraud liability to safeguard against fraudulent transactions
Complimentary roadside assistance for all cardholders
Get additional protection on eligible purchases through extended warranty
Disclaimer:Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Our lists of the best credit cards are based on publicly available data from card issuers and other reputable sources like the Consumer Finance Protection Bureau. We review each card’s fees, interest rates, rewards, benefits and more to assign a rating for each feature. These ratings are stack ranked and weighted for each card category to determine our top selections for each type of user. Because card details change regularly, we revisit our data each month to update our ratings, recommendations and other card information as needed. Learn more about our data collection and ranking process.
Top Rating Criteria for 0% APR Credit Cards
Credit Acceptance
Sign-up bonus
Annual Fee
Quick Tips for Comparing Zero Interest Credit Card Offers
You need to consider different factors before applying for a 0% interest credit card.
Applicable categories: Determine if you need a 0% APR card for purchases, balance transfers or both. Depending on the card you get, the APR offer might apply to just one of the two.
Introductory offer period: Introductory APR offer periods with consumer credit cards typically vary from 12 to 20 months. The Wells Fargo Reflect Card has a unique offer with a 0% intro APR for 18 months, which you may extend by up to 3 months by making on-time minimum payments.
APR after the intro period: No matter whether you get a 0% APR card for purchases or balance transfers, you need to start paying interest toward any outstanding amount that remains at the end of the promotional period. This aspect requires your particular attention if you plan to carry forward balances from one month to the next in the future.
Balance transfer fee: If you plan to use a card’s 0% APR offer on balance transfers, find out how much you’ll need to pay as balance transfer fees in advance. With the Chase Freedom Unlimited Card, you need to pay either $5 or 3% of the transferred amount (whichever is greater) on transfers you carry out within 60 days of account opening. Then, it changes to $5 or 5% of the transferred amount.
Annual fees: None of the 0% interest credit cards we’ve selected come with annual fees.
Rewards/cash back rate: While some 0% APR cards let you earn cash back, others offer reward points that you may redeem in different ways. In both cases, you may find alternatives that offer higher earn rates on category-based spending. For instance, the Blue Cash Everyday Card from American Express offers 3% cash back on groceries at U.S. supermarkets, on up to $6,000 in purchases per year; 2% cash back on gas purchases at U.S. gas stations and at select department stores in the U.S.; and 1% cash back on all other purchases.
Added perks: Since the 0% APR cards that MoneyGeek has selected come with no annual fees, they generally don’t offer premium benefits. However, some include valuable benefits, like no foreign transaction fees, fraud protection, basic insurance coverage and travel assistance services.
Best 0% APR Credit Cards Compared at a Glance
Check out the 0% interest credit cards listed in the corresponding table and compare them across different parameters, such as intro offer periods and rewards, before selecting one that you feel works best for you.
If you take advantage of a 0% balance transfer offer, you must still pay off all of your purchases each month to avoid interest on those transactions. -- Lee Huffman, credit card expert at BaldThoughts.com
MoneyGeek’s Quick Guide to Understanding 0% APR Credit Cards
A 0% APR credit card is one that charges no interest on purchases, balance transfers or both, for a predetermined time frame. More often than not, you need good to excellent credit to qualify. Low-interest credit cards, unlike 0% APR cards, come with low APRs that stay in place for as long as your account remains active. Some cards from both categories come with no preset spending limits. This means that your credit line fluctuates based on your purchase, payment and credit histories.
0% APR vs. Low-Interest Credit Cards
When you get a credit card with a 0% APR offer, you get to pay no interest for a given number of months, typically ranging from 12 to 20. Once the introductory period ends, any outstanding balance starts accruing interest. Depending on the card you get, the 0% APR offer might apply either on new purchases or balance transfers, or even on both. You’ll find out the APR that will apply after the intro period once you get approved for your card, and it essentially depends on your creditworthiness.
The low APR of a low-interest credit card stays in effect as long as your account remains active. However, credit card interest rates are typically variable, which means it is subject to change based on federal prime interest rates. Even if your card’s low APR changes because of fluctuations in prime rates, you can still expect it to be toward the lower end of the spectrum.
With low-interest credit cards, the APR that applies on purchases might not be the same as the APR that applies on balance transfers. In addition, the APR on cash advances is typically high no matter which card you get.
How Do 0% APR Credit Cards Work?
0% APR cards work in the same basic manner as regular credit cards do, wherein you are required to make at least minimum monthly payments toward the amount you borrow. In addition, they charge no interest for a stipulated time frame. However, there’s more:
Eligibility: Qualifying for the best 0% APR credit cards requires that you have good or excellent credit. If you don’t, you might consider applying after you’ve taken steps to build your credit.
Not all transactions are covered: Depending on your 0% promo offer, the interest-free period may only apply to purchases or balance transfers. Make sure you understand the details of your offer before charging anything to your card. Cash advances start accruing interest from the day of the transaction, and these never come with interest-free days.
Limits might apply: This might be the case with 0% balance transfer APR offers. For example, you might not be able to transfer more than a fixed percentage of your new card’s available credit limit.
Outstanding balances will accrue interest: Once the promo period ends, any outstanding balance will start accruing interest. You get to know the APR that will apply well in advance.
Your card provider might cancel the offer: It’s important that you keep making at least your minimum monthly payments on time. If you don't, your card provider might cancel the intro APR offer before it expires. A late or returned payment might also result in a penalty APR that is notably higher than your regular APR.
Are 0% APR Credit Cards Worth It?
A 0% APR credit card can be worth it if you have a clear goal in mind. When appropriately used for a predetermined time, this type of card can provide the help you need to make a large purchase or to avoid paying interest on existing credit card debt. However, you need to determine if the benefits outweigh the possible drawbacks at the very onset.
Key Takeaways
Benefits:
The large purchase factor. If you plan to make a large purchase on credit and know that you will be able to repay the amount within a given time frame, a card with a 0% APR offer on purchases might work well for you. As long as you repay the amount during the promotional period, you’ll pay no interest.
Balance transfers. If you have high-interest credit card debt, you may consider transferring it to a card that has a 0% APR offer on balance transfers. This way, you get a predetermined period to repay the amount without it accruing any interest. Since all your repayments go toward the principal and not interest, you get the opportunity to repay your debt faster.
Risks:
The 0% APR is not permanent. Depending on the card you get, the 0% APR offer might last for 12 to 20 months. Then, the regular APR kicks in and applies on any outstanding balance. The regular APR depends on your creditworthiness and does not have to be low. This requires being careful about carrying forward balances when the promo period ends.
Balance transfer fees. It is common for cards with 0% APR offers on balance transfers to charge balance transfer fees. This is usually 3% or 5% of the transferred amount (minimum fees of $5 to $10 may apply).
Penalty APR may apply. You might have to say goodbye to the 0% APR if you make a late or returned payment. In such a scenario, a high penalty APR might apply.
Expert Advice For Finding the Right Card
We’ve asked academic and financial experts a few questions, the answers to which can help you determine if you should consider getting a card that comes with a time-bound 0% APR offer.
Could making a large purchase on a 0% APR card affect one’s credit score?
Could you benefit through a 0% APR offer on balance transfers even if you don’t plan to pay off the entire balance during the promo period?
Might it be worth transferring high-interest credit card debt to a 0% balance transfer APR card, and then transferring the outstanding balance at the end of the promo period to another 0% balance transfer APR card?
Haibo (Stephen) Yao
Assistant Professor of Insurance & Risk Management at the University of Central Arkansas
Malcolm Robinson
Professor of Economics at Thomas More University
Chris Tamm
Associate Professor of Finance, Director - Institute for Financial Planning & Analysis at Illinois State University
Kathryn Morrison
Instructor at the School of Health & Consumer Sciences at South Dakota State University
Frank G. Cabano
Assistant Professor, Marketing and Management at The University of Texas at El Paso
Danny Chung
Program Manager at California State University, San Bernardino
John Lopez
Senior Professor of Practice at C.T. Bauer College of Business at the University of Houston
FAQs About 0% APR Credit Cards
In this section, we provide answers to other commonly asked questions about 0% APR credit cards.
The best 0% interest credit cards are ones that offer extended promotional periods and give you the ability to earn rewards or cash back. The top cards from this category come with no annual fees as well.
Zero-interest credit cards are good for avoiding paying interest during a predetermined period. The 0% APR might apply to new purchases, balance transfers or both. These cards are good, provided you do not keep any outstanding balance when the promo period ends.
Some card issuers provide 0% balance transfer offers to existing customers through targeted mailings or online offers. Contact your card's customer service to see if you are eligible. If you have good standing with your card provider and excellent credit, you may also consider negotiating for a lower rate.
A 0% interest credit card has the potential to affect your credit score just like any other credit card. For instance, if you end up using much of the credit that’s made available to you, it may have an adverse effect on your credit utilization ratio, which, in turn, might affect your credit score.
Credit card providers calculate minimum payments on 0% APR cards in the same way that they do for regular cards. In most cases, you need to pay the higher of either a flat fee or a fixed percentage of the total outstanding balance.
While APRs and interest rates are not the same when it comes to mortgages and auto loans, they are the same in relation to credit cards. So, yes, 0% APR means no interest on a credit card — although only for a predetermined period.
You may use a <a href="https://www.moneygeek.com/credit-cards/balance-transfer/">balance transfer card to pay off existing high-interest credit card debt. Doing so is ideal when you’re sure about paying off the entire amount before the end of the promo period because a card’s regular APR kicks in then. You might also have to pay balance transfer fees, which could be up to 5% of the transferred amount.
Start by selecting a card that comes with a 0% APR offer on balance transfers. If you have the option of providing details of the card from which you wish to transfer a balance during the application process, do so. Alternatively, speak with a customer service representative of your card provider. Once initiated, a balance transfer usually goes through in five to seven days, although it might take up to 21 days with some card providers.
The main aim of credit card companies that run 0% APR offers is to attract new customers. Besides, while you pay no interest for a given time, they still make money because of you. For instance, every time you make a purchase, the merchant in question needs to pay an interchange fee. If you plan to get a 0% APR card for a balance transfer, you might need to pay a balance transfer fee. In addition, the regular APR comes into play as soon as the promotional period ends.
Most banks will not extend the duration of your 0% APR offer. If you need more time to pay off your balance, your best option is to apply for a balance transfer card to receive a new 0% APR offer. Pick a new bank when applying because some banks will not allow you to do a balance transfer between two cards at the same bank.
Now that you know how 0% APR cards work on new purchases and balance transfers, determine if getting one might work well for you. If you think it might, make sure you compare your alternatives across aspects such as promotional periods, fees and rewards.
Rajiv Baniwal has been writing about different financial topics for over 15 years. Meticulous in his research, he makes sure he provides accurate and up-to-date information. His areas of expertise include mortgages, personal loans, credit cards, insurance and international money transfers.
*Rates or fees may vary or include specific stipulations. We recommend visiting the card issuer’s website for the most up-to-date information available. Advertiser Disclosure: MoneyGeek has partnered with CardRatings for our coverage of credit card products. MoneyGeek and CardRatings may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.
