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.
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.
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.
Citi Simplicity® Card
A good no annual fee card for balance transfers
Good-ExcellentCredit Needed
$0Annual Fee
14.74% - 24.74%APR
12 monthsAPR Offer Duration
21 monthsBalance Transfer Duration
The Citi Simplicity® Card might work well for people who’re looking for balance transfer cards with no annual fees. This card comes with a 0% APR offer on balance transfers for 21 months. However, you need to complete your balance transfer within the first four months, and you need to pay a 5% balance transfer fee. An intro 0% APR offer also applies on purchases for 12 months.
If you get the Citi Simplicity® Card, you may choose your own due date. You may also benefit through Citi Identity Theft Solutions and $0 liability on unauthorized charges
This card comes with foreign transaction fees and cash advance fees. It is one of the few cards you may find that charge no late payment fees. However, returned payments attract fees.
Pros
No annual fee
Long 0% APR introductory offer
Citi perks
No penalty rate
No late fees
Cons
3% foreign transaction fee
No rewards
You need to pay a fee of either $5 or 5% of the amount of each credit card balance transfer, whichever is greater.
You can have a flexible payment due date that can adjust to your unique situation.
0% intro APR for purchases for 12 months and 0% intro APR for 21 months on balance transfers.
No annual fees.
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
ExcellentCredit Needed
0% APR on new purchasesAPR Offer
12 monthsAPR Offer Duration
0% Intro APR on balance transfersBalance Transfer Offer
14.74%–24.74%APR
Citi® 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.
A good no-annual-fee credit card with a 0% APR offer on purchases and balance transfers
Good-ExcellentCredit Needed
$0Annual Fee
18 monthsAPR Offer Duration
18 monthsBalance Transfer Duration
We recommend the BankAmericard® credit card to people who’re looking for no-annual-fee cards with intro APR offers. This card comes with a 0% APR offer on purchases and balance transfers for the first 18 months. However, you need to carry out your balance transfer within the first 60 days and you need to pay a balance transfer fee.
New cardholders get the ability to earn a $100 bonus statement credit if they spend $1,000 on purchases within the first 90 days. Using this card outside of the U.S. might not be a good idea because it comes with foreign transaction fees.
Pros
No annual fee
Spend-based welcome bonus
0% APR on purchases and balance transfers for 18 months
Cons
Balance transfer fees
Foreign transaction fees
No rewards program
$0 annual fee
0% purchase and balance transfer APR for the first 18 months
Get a $100 statement credit by spending $1,000 on purchases in the first 90 days
No penalty APR
Balance transfer fee of 3%
Foreign transaction fee of 3% (5% for overseas cash advances)
Free access to updated FICO Score
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 good no annual fee card with a 0% intro APR offer
Good-ExcellentCredit Needed
$0Annual Fee
14.99% - 23.74%APR
18 monthsBalance Transfer Duration
18 monthsAPR Offer Duration
We recommend the Chase Slate Edge℠ to people who are looking for cards with intro 0% APR offers that don’t charge annual fees. This card’s 0% APR offer applies on purchases and balance transfers for the first 18 months. However, balance transfers come with fees.
The Chase Slate Edge℠ lets you break up purchases of $100 or more into equal monthly payments through the My Chase Plan. If your purchases qualify for this plan, you pay a fixed monthly fee and no interest.
Depending on your card’s initial APR, you might qualify for an APR reduction of up to 2% when you make timely payments and spend at least $1,000 on purchases by your next account anniversary.
Additional benefits come in the form of automatic reviews for a higher credit limit, free access to your credit score, purchase protection, extended warranty protection, auto rental collision damage waiver and roadside dispatch.
Using this card outside of the U.S. might not work well for you, given its 3% foreign transaction fee.
Pros
Long introductory APR period for both purchases and balance transfers
No annual fee
Annual APR reduction with good usage
Automatic credit line increase with responsible usage
Cons
Foreign transaction fee
No rewards program
0% APR for 18 months from account opening on purchases and balance transfers
Balance transfer fee of 3% of the amount of each transfer or $5 minimum for the first 60 days of account opening, then 5% or $5 of the amount of each transfer, whichever is greater
Purchase and travel protections
Auto rental collision damage waiver
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 card that offers up to 2% cash back
ExcellentCredit Needed
$0Annual Fee
2% Cash Back*Rewards Rate
2xRewards Rate on Gas
2xRewards Rate on Groceries
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.
A good no annual fee card with a lengthy 0% APR offer
Good-ExcellentCredit Needed
$0Annual Fee
18 monthsBalance Transfer Duration
18 monthsAPR Offer Duration
We recommend the Wells Fargo Reflect Card to people who’re looking for 0% APR cards with no annual fees. This card comes with a 0% intro APR for 18 months on purchases and balance transfers. In addition, if you make on-time payments, you may qualify for an extension of up to three more months.
If you wish to qualify for the intro rate offer on balance transfers, you need to carry out the desired transfers within 120 days from account opening. In this case, a balance transfer fee of $5 or 3% of the transferred amount (greater of the two) will apply. For transfers initiated after the 120-day period, the fee changes to $5 or 5% of the transferred amount.
All cardholders get complimentary cell phone insurance and access to 24/7 emergency roadside assistance. If you plan to use your card outside of the U.S., you’ll need to pay a 3% foreign transaction fee.
Pros
No annual fee
Up to $600 cell phone protection for eligible theft or damage
0% introductory APR on new purchases and balance transfers
Opportunity to extend intro APR period with timely payments
Zero liability protection
Competitive variable APR
Cons
No rewards program or welcome bonus
Foreign transaction fee of 3%
Balance transfer fee increases from 3% to 5% after 120 days
Intro APR may lapse if you don't make on-time payments
0% APR offer on purchases and balance transfers for up to 21 months
No annual fee
$600 cell phone protection available for those who pay their monthly cell phone bill with this card
Cash back is available in the form of statement credit through My Wells Fargo Deals
24/7 on-demand roadside dispatch network that offers roadside assistance, locksmith services and towing
$40 late fee
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 good no-annual-fee cash back credit card with revolving bonus categories
Good-ExcellentCredit Needed
$0Annual Fee
1%-5% Cash backRewards Rate
5xRewards Rate on Groceries
5xRewards Rate on Gas
We like the Discover it® Cash Back because it charges no annual fees and offers high cash back on revolving bonus categories. In addition, Discover matches the cash back you earn during the course of the first year, which you receive as a bonus at the end of the year.
You stand to receive 5% cash back on select categories through the course of the year, examples of which include grocery stores, restaurants and digital wallets. However, you need to activate these categories, and the bonus cash back applies on purchases up to a predetermined maximum spending limit.
This card comes with a 0% APR offer on purchases and balance transfers for the first 15 months. The offer applies on balance transfers until July 10, 2022. Using your Discover credit card outside of the U.S. is perfect because it comes with no foreign transaction fees.
Pros
No annual fees
No foreign transaction fees
No limit to the cash back Discover matches in the first year
Earn up to 5% cash back on revolving bonus categories
1% cash back on all other purchases
Choose from 25 card designs while applying
Cons
Need to activate bonus categories
5% cash back on spending of up to a quarterly maximum
0% APR offer on balance transfers for a limited time period
Balance transfer fee
No annual and foreign transaction fees
Balance transfer fee of 3% until July 10, 2022, and 5% thereafter
Up to 5% cash back on revolving bonus categories that you need to activate each quarter
Revolving bonus categories include Amazon.com, restaurants, grocery stores, gas stations and payments made via PayPal
Redeem cash back as statement credit, a direct deposit or to checkout at Amazon or PayPal
25 card designs from which to choose
No penalty APR
$0 fraud liability
Free access to FICO Score
Social Security Number updates
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
ExcellentCredit Needed
$0Annual Fee
1.5–5% Cash BackRewards Rate
3xRewards Rate on Dining
5xRewards Rate on Air Travel
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 on purchases for 15 months from account opening
Intro bonus cash back offer
Earn 5% cash back on travel purchases
Earn 3% cash back on dining-related purchases
Earn 3% cash back on drugstore purchases
Earn 1.5% cash back on all other purchases
You may earn unlimited cash back that never expires
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 at gas stations (on up to $6,000 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.
A great no annual fee cash back card with a unique bonus category system
Good-ExcellentCredit Needed
$0Annual Fee
1% - 5% Cash BackRewards Rate
15 monthsAPR Offer Duration
15 monthsBalance Transfer Duration
The Citi Custom Cash℠ Card might be a great addition to your credit card portfolio if you wish to earn higher-than-usual cash back without paying any annual fees. In addition, you stand to earn $200 cash back if you spend $750 on purchases within the first three months.
This card offers 5% cash back on purchases up to $500 from your highest eligible spend category every billing cycle. The categories include grocery stores, gas stations, restaurants, home improvement stores, drugstores, live entertainment, fitness clubs, and select travel, transit and online streaming services. All other purchases come with 1% cash back. What helps is you don’t have to sign up for bonus categories, and the allocation of cash back happens automatically.
You may redeem the cash back you earn as a statement credit, a check by mail or a direct deposit to your bank account. You may also use it for booking travel, shopping at Amazon.com or buying gift cards.
This card might also work well for you if you want to transfer a balance from a different credit card or if you plan to maintain revolving balances in your account. This is because it comes with a 0% APR offer on purchases and balance transfers for the first 15 months.
Other benefits include free access to your FICO Score and Citi Entertainment.
Pros
$200 cash back after you spend $750 within the first three months
5% cash back on up to $500 spent in the top category every month
An introductory APR offer that is valid for the first 15 months on purchases and balance transfers
No annual fee
Protection against unauthorized charges
Cons
Foreign transaction fee of 3%
Relatively low limit of $500 per month for a 5% cash back on the top-spending eligible category
You need a credit score that is either good or excellent.
Only 1% cash back for purchases made on categories other than the high spend category
One-time balance transfer fee of $5 or 5%
Late payment fee of $40
No annual fee.
5% cash back on the top purchase category on spending of up to $500 every month.
The spend category can change from one month to another, depending on what you spend most on.
You get unlimited 1% cash back on all other purchases.
Intro 0% APR applies for 15 months on purchases and balance transfers.
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 easy-to-use cash back card with quarterly rotating bonus categories
Good-ExcellentCredit Needed
$0Annual Fee
1–5% Cash Back*Rewards Rate
5xRewards Rate on Air Travel
3xRewards Rate on Dining
We recommended the Chase Freedom Flex℠ to people who wish to earn high category-based cash back without paying an annual fee. You get 5% cash back on combined purchases of up to $1,500 in bonus categories you activate every quarter and on travel purchased through Chase Ultimate Rewards. You get 3% cash back on multiple bonus categories. You also get higher-than-usual cash back at gas stations during the first year.
This card comes with an introductory APR applies on purchases and balance transfers. However, if you use this card to transfer a balance, you need to pay a balance transfer fee. This card also comes with foreign transaction fees.
Some of the additional benefits come in the form of purchase protection, extended warranty, cell phone protection, trip cancellation/interruption insurance and auto rental collision damage waiver.
Pros
Generous welcome offer
Rotating cash back bonus categories
No annual fee
Excellent customer-facing features
Grocery store perks
DoorDash and Lyft benefits
Cons
Modest base cash back rate
Your interests might not align with quarterly rotating bonus categories
Foreign transaction fees
5% cash back on quarterly rotating bonus categories
5% cash back on Chase Ultimate Rewards travel purchases
3% cash back on dining, takeout, delivery and drug store purchases
1% cash back on all other purchases
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 cash back card with a 0% APR offer
Good-ExcellentCredit Needed
$0Annual Fee
2% Cash BackRewards Rate
2xRewards Rate on Gas
2xRewards Rate on Groceries
We think the Wells Fargo Active Cash Card might work well you if you wish to earn cash back and pay no annual fee. As a new cardholder, you may earn a $200 cash rewards bonus if you spend $1,000 on purchases during the first three months. This card also comes with a 0% APR offer for 15 months on purchases and balance transfers.
The Wells Fargo Active Cash Card offers 2% cash back on all purchases. You may use the cash back you earn to offset eligible purchases, you may redeem it as a credit to an existing Wells Fargo credit card, checking or mortgage account, you may redeem it through ATMs or you may use it to purchase gift cards.
Additional benefits come in the form of cell phone protection and access to a 24/7 concierge service as well as the Visa Signature Hotel Collection. Using this card outside of the U.S. might not work well for you, given its 3% foreign transaction fee.
Pros
2% cash back rewards on all spending
Unlimited cash back rewards that don't expire
No annual fee
0% intro APR on purchases and balance transfers for 15 months
$200 welcome bonus after spending $1,000 on purchases within three months from account opening
Access to Visa Concierge and Visa Signature Luxury Hotel Collection
Cons
3% foreign transaction fee
Balance transfer fees
Limitations on welcome bonus eligibility
No annual fee
2% cash back on all purchases
Redeem cash back as a statement credit, a direct deposit to a Wells Fargo account, or a mailed check
Spend $1,000 within three months from account opening to earn a $200 welcome bonus
Enjoy 0% APR on purchases and balance transfers for first 15 months
3% foreign transaction fee
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 experts analyze 57 data points they collect from issuer websites, the Consumer Finance Protection Bureau and details provided by our partners to make sure we give you the most accurate information possible. They subject all new and existing cards from this segment to our unique ranking methodology that takes multiple parameters into account to arrive at the best of the lot.
APR: 3%
Annual Fee: 5%
Cash Back Rate: 5%
Miles Rate per $: 5%
Points Rate per $: 5%
Balance Transfer Offer: 25%
Balance Transfer Duration: 25%
Balance Transfer Fee: 5%
Balance Transfer APR: 5%
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.
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.
What’s the Difference Between a 0% Credit Card and a Low-Interest Card?
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.
MONEYGEEK QUICK TIP
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
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.
How to Take Advantage of Zero-Interest Credit Cards
A 0% APR card can help you avoid or minimize how much you pay in interest charges. If you have no outstanding balance at the end of the promo period, you pay no interest at all. Once the promo period ends, any outstanding balance starts accruing interest at the card’s regular APR. That is why you should try to pay off as much of the balance as possible before the intro 0% APR offer ends.
Consider this example to see how much a balance transfer can save.
How Much You Will Pay With Your Current Credit Card
How Much You Will Pay When You Transfer Your Balance
Current outstanding balance: $10,000 Regular APR: 19.49% Monthly payment: $500 Time required to pay off the balance: 25 months Total amount to pay: $12,190.16
Balance transfer amount: $10,000 Balance transfer fee: 3% Intro APR: 0% for 18 months Regular APR: 19.49% Monthly payment: $500 Time required to pay off the balance: 20 months Total amount to pay: $10,339.00
Total savings: $1,851.16
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.
Benefits & Risks
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
Dr. Mary Sasmaz
Assistant Professor at Baldwin Wallace University
Alex Young
Assistant Professor of Accounting, Taxation and Legal Studies in Business at Hofstra University
Masud Chand
Professor at Wichita State University
Lawrence Chui
Associate Professor of Accounting at the University of St. Thomas, Opus College of Business
Robert Warren
Instructor at The University of North Dakota
Dr. Steven Kozlowski
Assistant Professor in the Finance Department at Fairfield University’s Dolan School of Business
Mauricio Rodriguez
Professor at the Neeley School of Business at Texas Christian University
Richard M. Proctor
Associate Professor of Finance at University of Siena
Dr. Chandan Kumar Jha
Assistant Professor of Finance, Madden School of Business, Le Moyne College
Tom Hall
Associate Professor & Associate Director of the Center for Public History at Christopher Newport University
George Langelett
Professor at Ness School of Management and Economics, South Dakota State University
Dr. Corey Cole
Assistant Professor of Finance at Eastern New Mexico University
Robert H. Scott III, Ph.D
Professor in the Department of Economics, Finance and Real Estate at Monmouth University
Paul (Ted) Klontz, PhD
Associate Professor of Practice of Financial Psychology and Behavioral Finance at Creighton University’s Heider College of Business and Co-Founder and Director of the Financial Psychology Institute®
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
Amanda S. King
Professor of Economics at Georgia Southern University
Mitchell Franklin
Associate Professor of Accounting at the Madden School of Business at Le Moyne College
Mahmoud Haddad
Professor of Finance at The University of Tennessee at Martin
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, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available. Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com 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.
