What are the best 0% interest 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.

Are 0% interest credit cards good?

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.

How to get 0% interest on an existing credit card?

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.

Does a 0% interest credit card affect your credit score?

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](https://www.moneygeek.com/credit-cards/advice/credit-utilization-ratio/), which, in turn, might affect your credit score.

What is the minimum payment on a 0% interest credit card?

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.

Does 0% APR mean no interest on a credit card?

While APRs and interest rates are not the same when it comes to mortgages and auto loans, the [credit card interest](https://www.moneygeek.com/credit-cards/advice/how-credit-card-interest-works/) is closely related to APR. So, yes, 0% APR means no interest on a credit card — although only for a predetermined period.

Should I transfer my credit card balance to 0% interest?

You may use a [balance transfer card](https://www.moneygeek.com/credit-cards/balance-transfer/) 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.

How do I transfer credit card debt to a 0% interest card?

Start by selecting a card that comes with a 0% APR offer on [balance transfers](https://www.moneygeek.com/credit-cards/balance-transfer/). 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.

Why do credit cards offer 0% APR?

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.

How can I extend a 0% APR credit card?

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.

Best 0% APR Credit Cards in 2023

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 the best 0% interest credit cards so you can choose one with ease.

Advertising & Editorial DisclosureLast Updated: 1/22/2023

Edited By

Erika Hearthway

Written By

Rajiv Baniwal

Reviewed By

Lee Huffman

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

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.

More about 0-APR Credit Cards

MoneyGeek’s Take: Top 11 0% APR Credit Cards

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Card Name
BT Offer Length
BT Offer
BT Fee
1.
Citi Simplicity® Card
21 months
0% Intro APR on balance transfers for 21 months then a 17.74% – 28.49% Variable APR afer that
Introductory Fee– either $5 or 3% of the amount of each transfer, whichever is greater for the first four months of account opening, after that balance transfer fee of $5 or 5% after first four.
2.
Citi® Diamond Preferred® Card
21 months
0% Intro APR on balance transfers for 21 months then a 17.74% – 28.49% Variable APR afer that
$5 or 5%, whichever is greater
3.
BankAmericard® credit card
21 billing cycles
0% Intro APR on balance transfers
$10 or 3%, whichever is greater
4.
Chase Slate Edge℠
18 months
0% Intro APR on balance transfers
$5 or 3% of each transfer amount (whichever is greater) in the first 60 days. After that, either $5 or 5%, whichever is greater.
5.
Citi® Double Cash Card
18 months
0% Intro APR on balance transfers
3%
6.
Wells Fargo Reflect® Card
18 months
0% Intro APR on balance transfers
Intro balance transfer fee: 3% or $5 minimum, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer, with a minimum of $5
7.
Discover it® Cash Back
15 months
0% Intro APR on balance transfers
Introductory Fee– 3% of the amount of each transfer for transfers that post to your account by March 10, 2023, with 0% intro APR balance transfer offer. After that, 5% of the amount of each transfer.
8.
Chase Freedom Unlimited®
15 months
0% Intro APR on balance transfers
$5 or 3% of each transfer amount (whichever is greater) in the first 60 days. After that, either $5 or 5%, whichever is greater.
9.
Citi Custom Cash℠ Card
15 months
0% Intro APR on balance transfers
$5 or 5%, whichever is greater
10.
Chase Freedom Flex℠
15 months
0% Intro APR on balance transfers for the first 15 months, then a 19.24% – 27.99% Variable
$5 or 3% of each transfer amount (whichever is greater) in the first 60 days. After that, either $5 or 5%, whichever is greater.
11.
Wells Fargo Active Cash® Card
15 months
0% Intro APR on balance transfers
Intro balance transfer fee: 3% or $5 minimum, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer, with a minimum of $5

Best 0% APR Credit Cards

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–ExcellentRecommended Credit
- $0Annual Fee
- 18.24% – 28.99% VariableAPR
- 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, after that, the variable APR will be 17.74% - 28.49%. However, you need to complete your balance transfer within the first four months, and you need to pay an Introductory Fee- either $5 or 3% of the amount of each transfer, whichever is greater for the first four months of account opening, after that balance transfer fee of $5 or 5% after first four. An intro 0% APR offer also applies on purchases for 12 months, after that, the variable APR will be 18.24% – 28.99%.
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 an Introductory Fee- either $5 or 3% of the amount of each transfer, whichever is greater for the first four months of account opening, after that balance transfer fee of $5 or 5% after the first four.
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, then variable APR will be 18.24% – 28.99% thereafter
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.
Terms, rates and fees apply
Citi® Diamond Preferred® Card
Best balance transfer card for immediate transfers
- ExcellentRecommended Credit
- 0% Intro APR on new purchasesAPR Offer
- 12 monthsAPR Offer Duration
- 0% Intro APR, then 17.74% – 28.49% variable APR thereafterBalance Transfer Offer
- 17.24% – 27.99% VariableAPR
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 17.24% – 27.99% 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.
Terms, rates and fees apply
BankAmericard® credit card
A good no-annual-fee credit card with a 0% APR offer on purchases and balance transfers
- Good–ExcellentRecommended Credit
- $0Annual Fee
- 21 billing cyclesAPR Offer Duration
- 21 billing cyclesBalance 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 21 billing cycles However, you need to carry out your balance transfer within the first 60 days and you need to pay a balance transfer fee.
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
0% APR on purchases and balance transfers for 21 billing cycles

Cons
Balance transfer fees
Foreign transaction fees
No rewards program
$0 annual fee
0% purchase and balance transfer APR for the first 21 billing cycles, then a variable APR of 16.24% – 26.24%
No penalty APR
Balance transfer fee of $10 or 3%, whichever is greater
Foreign transaction fee of 3% (5% for overseas cash advances)
FICO Score for free
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.
Terms, rates and fees apply
Citi® Double Cash Card
A great no-annual-fee card that offers up to 2% cash back
- Good–ExcellentRecommended Credit
- $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 up to 2% cash back on purchases across all categories. 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, then 18.24% – 28.24% (Variable) 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
Up to 2% unlimited cash back on purchases
Redeem cash back rewards as a statement credit, a check or a direct deposit
Converting cash back rewards to Thank You points is an option
Intro 0% APR offer on balance transfers for the first 18 months, then variable APR will be 18.24% – 28.24% after that.
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.
Terms, rates and fees apply
Wells Fargo Reflect® Card
A good no annual fee card with a lengthy 0% APR offer
- Good–ExcellentRecommended Credit
- $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.
Terms, rates and fees apply
Discover it® Cash Back
A good no-annual-fee cash back credit card with revolving bonus categories
- Good–ExcellentRecommended Credit
- $0Annual Fee
- 1%–5% Cash backRewards Rate
- 1xRewards Rate on Groceries
- 1xRewards 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 April 10, 2023. 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 March 10, 2023, 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.
Terms, rates and fees apply
Compare this credit card with other top-rated credit cards.
Citi Custom Cash℠ Card
A great no annual fee cash back card with a unique bonus category system
- Good–ExcellentRecommended Credit
- $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 $1500 on purchases within the first six 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, then a variable APR of 18.24% – 28.24%.
Other benefits include free access to your FICO Score and Citi Entertainment.
Pros
$200 cash back after you spend $1500 within the first six 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, then a variable APR of 18.24% – 28.24%
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 $41
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, then 18.24% – 28.24% variable APR thereafter
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.
Terms, rates and fees apply
Wells Fargo Active Cash® Card
A great no annual fee cash back card with a 0% APR offer
- Good–ExcellentRecommended Credit
- $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.
Terms, rates and fees apply

The Best Credit Cards for 0% APR at a Glance

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HOW WE RANK CREDIT CARDS FOR 0% INTRO APR

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.
>>MORE: APR vs. APY
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.

Other Cards to Consider

Best Cash Back Credit Cards

Best Rewards Credit Cards

Best Credit Cards

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 to purchases might not be the same as the APR that applies to 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: The interest-free period may only apply to purchases or balance transfers depending on your 0% promo offer. 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 the example below to see how much a balance transfer can save.

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 to 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 from 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®

May Jiang

CPA, CFP®, Founder of Beyond Profit and Wealth Consulting

Lambrianos Nikiforidis, Ph.D.

Assistant Professor of Marketing at SUNY Oneonta

Priya Raghubir

Professor of Marketing at New York University Stern School of Business

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

S. Abraham Ravid

Sy Syms Professor of Finance, Sy Syms School of Business at Yeshiva University

FAQs About 0% APR Credit Cards

In this section, we provide answers to other commonly asked questions about 0% APR credit cards.

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.