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The best way to avoid paying interest on a credit card is to never carry over a balance on that card in the first place.
However, in real life, things happen — an unexpected home or car repair, a large medical bill, or even a last-minute trip to attend a funeral can result in you spending more than you had planned.
Regardless of the reason, carrying large balances on your credit card can cost you dearly when interest is added to the debt and you find yourself unable to pay it off in a timely manner.
The good news is that there are several credit cards with zero-interest offers that can help you get the cost of that debt under control while you focus on paying it off. It’s even possible to earn rewards on purchases you make with 0% APR cards.
Let’s look at how 0% APR cards work, how you may earn rewards while saving on interest charges, and some of the best introductory 0% APR credit cards.
0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.24% - 29.99% variable APR (rates & fees)
Earn 20,000 bonus points when spending $1,000 in purchases in the first 3 months.
Annual fee of $0
0% intro APR for 12 months from account opening on purchases, 20.24%, 25.24%, or 29.99% Variable APR thereafter
Best for earning points
The Best 0% APR Personal Cards
If you’re looking for a 0% APR credit card, consider the repayment period that best fits your needs and any associated fees you might be charged. Another consideration, especially if you’re making a large purchase, is whether the card earns travel rewards or cash-back or has a generous welcome bonus offer.
With so many variables to consider, you might need a little help, so we’ve put together all the information you need to select the right card for your situation.
Let’s start with suggestions for 0% APR cards to consider for purchases.
Wells Fargo Reflect® Card – Best for 21-Month Intro APR
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Wells Fargo Reflect Card offers a long intro APR period without an annual fee.
The Wells Fargo Reflect Card offers a long intro APR period without an annual fee.
$0
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
The Wells Fargo Reflect® Card is a great option for those looking for a long intro APR window on purchases and qualifying balance transfers without an annual fee.
Pros
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter
Select “Learn More” to take advantage of this specific offer and learn more about product features, terms and conditions.
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min $5.
$0 Annual Fee.
Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It’s an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Financial Snapshot
APR: 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter
Foreign Transaction Fees: 3% of each purchase transaction after conversion into U.S. dollars.
When it comes to credit cards with a long 0% intro APR on purchases, you’d be hard-pressed to find a credit card with a longer 0% APR offer than the Wells Fargo Reflect card. This is because it offers an industry-leading 0% intro APR for 21 months from account opening on purchases, then a variable APR of 18.24%, 24.74%, or 29.99%, while many other 0% APR credit cards offer 12- to 15-month windows.
This makes the card great for those looking to finance larger purchases over the 21-month period, during which you can take your time paying off your purchases without worrying about interest accruing. Plus, the card has a $0 annual fee and offers perks like cell phone protection.
Chase Freedom Unlimited® and Chase Freedom Flex℠ – Best for Earning Travel Rewards
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
This all-purpose cash-back card offers great bonus categories, including bonus points for every purchase you make!
This all-purpose cash-back card offers great bonus categories, including bonus points for every purchase you make!
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Up to $300 cash back
$0
0% Intro APR for 15 months on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
The Chase Freedom Unlimited® is easily one of the best cash-back credit cards on the market. There aren’t many no-annual-fee credit cards that offer multiple great bonus categories like 5% back on travel purchased through Chase, 3% back on dining and drugstore purchases, and 1.5% back on all other purchases.
When paired with other Chase cards in the Ultimate Rewards family, you can transfer that cash back into points if you wish – making it one of the most lucrative cards in your wallet.
Pros
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
Member FDIC
Financial Snapshot
APR: 0% Intro APR for 15 months on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
Foreign Transaction Fees: 3% of each transaction in U.S. dollars
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Freedom Flex card is an excellent no-annual-fee card that still earns big with 5% cash-back on travel and other bonus categories.
The Freedom Flex card is an excellent no-annual-fee card that still earns big with 5% cash-back on travel and other bonus categories.
Earn a $200 bonus after you spend $500 on purchases in your first 3 months from account opening.
$200
$0
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49%-29.24%.
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
The Chase Freedom Flex℠ sure does pack quite a punch — especially for a no-annual-fee card.
The Freedom Flex card is an incredible option for those looking for a well-rounded cash-back card, or a powerful point-earner when paired with a premium card in the Ultimate Rewards family.
Pros
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49%-29.24%.
Powerful cash-back earner: 5% back on quarterly categories and travel purchases through Chase Ultimate Rewards, 3% back on dining and drugstore purchases, and 1% back on all other purchases
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49%-29.24%.
No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Flex® card
Keep tabs on your credit health - Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.
Member FDIC
Financial Snapshot
APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49%-29.24%.
Cardholders can receive their cash-back at a rate of 1 cent per point via a statement credit to offset purchases made or receive a direct deposit straight to their bank account.
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
This cash-back card offers a capped 3% at U.S. supermarkets, 3% at U.S. gas stations, and 3% on U.S. online retail purchases!
This cash-back card offers a capped 3% at U.S. supermarkets, 3% at U.S. gas stations, and 3% on U.S. online retail purchases!
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
$200
$0
19.24%-29.99% Variable,0% on purchases for 15 months
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
This card is excellent at earning cash-back on your everyday purchases at U.S. supermarkets, U.S. gas stations, and on U.S. online retail purchases. So if you regularly spend money on everyday purchases, this could be the perfect card to add to your wallet.
Pros
3% back on purchases at U.S. supermarkets on up to $6,000 in purchases each year, then 1% back after.
3% back on purchases at U.S. gas stations on up to $6,000 in purchases each year, then 1% back after.
3% back on purchases on online retail purchases on up to $6,000 in purchases each year, then 1% back after.
Cons
Rewards are not flexible and can only be redeemed for cash-back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
No Annual Fee.
Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.24% to 29.99% variable APR.
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
Enjoy up to $15 back per month when you purchase a Home Chef meal kit subscription (subject to auto renewal) with your enrolled Blue Cash Everyday® Card.
Terms Apply.
Financial Snapshot
APR: 19.24%-29.99% Variable,0% on purchases for 15 months
Foreign Transaction Fees: 2.7% of each transaction after conversion to US dollars.
Depending on the nature of the large purchase, you could fare well using the Amex Blue Cash Everyday card because it earns 3% cash-back at U.S. online retailers (up to $6,000 in purchases each year). This might be a card you would keep after your purchase is paid off, too, since it also earns 3% cash-back at U.S. supermarkets (up to $6,000 in purchases per year) and 3% cash-back at U.S gas stations (up to $6,000 in purchases per year).
There’s also a welcome bonus offer on this card, and depending on the amount of your large purchase, the offer might be used to offset part of the cost of that purchase.
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Bank of America Customized Cash Rewards card allows you to maximize your cash-back in your choice category each month.
The Bank of America Customized Cash Rewards card allows you to maximize your cash-back in your choice category each month.
Earn $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
$200
$0
0% Intro APR for 15 billing cycles for purchases and balance transfers. Variable rate of 18.24% - 28.24% applies thereafter.
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
If you’re looking to the rake in the cash-back rewards, then the Bank of America® Customized Cash Rewards Credit Card is a great option. Not only do you get to choose the 3% category for the card, but you can also boost the cash-back you earn by being a member of the Bank of America Preferred Rewards program.
Pros
3% cash-back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings (your category can be changed each month)
2% cash-back at grocery stores and wholesale clubs
1% cash-back on all other purchases
Cons
3% and 2% cash-back categories are limited to the first $2,500 in combined purchases each quarter, then you’ll earn 1%
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined quarterly purchases) and unlimited 1% on all other purchases.
If you’re a Preferred Rewards member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
No annual fee and no expiration on rewards.
0% Introductory APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24%-28.24% Variable APR will apply. A 3% fee applies to all balance transfers in the first 60 days your account is open. After the intro balance transfer fee offer ends, the fee for all future balance transfers is 4%.
Contactless Cards – The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Financial Snapshot
APR: 0% Intro APR for 15 billing cycles for purchases and balance transfers. Variable rate of 18.24% - 28.24% applies thereafter.
Foreign Transaction Fees: 3%
In addition to its solid 15-month APR offer, the Bank of America Customized Cash Rewards card is excellent for those looking to rack up cash-back.
With it, you earn 3% back in a category of your choice from the following:
Gas and EV charging stations
Online shopping, including cable, internet, phone plans and streaming
Dining
Travel
Pharmacies
Home improvement and furnishings
Plus, you earn 2% cash-back at grocery stores and wholesale clubs and 1% cash-back on all other purchases. Keep in mind that your 3% and 2% cash-back categories are limited to the first $2,500 in combined purchases each quarter in the choice category and at grocery stores and wholesale clubs.
Wells Fargo Active Cash® Card (Best for Simple Cash Rewards)
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Wells Fargo Active Cash card earns 2% cash rewards on purchases with no annual fee.
The Wells Fargo Active Cash card earns 2% cash rewards on purchases with no annual fee.
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
$200 cash rewards bonus
$0
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter.
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
Pros
Earn unlimited 2% cash rewards on purchases
No annual fee
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5
Cons
No bonus categories for those who want to optimize certain purchases
Select “Learn More” to take advantage of this specific offer and learn more about product features, terms and conditions.
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Earn unlimited 2% cash rewards on purchases.
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
$0 annual fee.
No categories to track or remember and cash rewards don’t expire as long as your account remains open.
Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Financial Snapshot
APR: 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter.
Foreign Transaction Fees: 3% of each transaction converted to U.S. dollars.
If you like earning cash rewards on all of your purchases, prefer not to fuss with trying to remember bonus categories, and still want a great 15-month 0% APR offer, then consider the Wells Fargo Active Cash Card.
The card earns an uncapped 2% cash rewards on all purchases and gives you perks like cell phone protection, all for a $0 annual fee.
Wells Fargo Autograph℠ Card (Best for Earning Points)
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Wells Fargo Autograph Card offers great 3x bonus points and cell phone protection with no annual fee.
The Wells Fargo Autograph Card offers great 3x bonus points and cell phone protection with no annual fee.
Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.
20,000 points
$0
0% intro APR for 12 months from account opening on purchases, 20.24%, 25.24%, or 29.99% variable APR thereafter.
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
The Wells Fargo Autograph℠ Card is an excellent no annual fee card that offers 3x points on 6 different bonus categories. Choose from multiple options when you’re ready to redeem your rewards, and take advantage of great perks including cell phone protection, auto rental collision damage waiver, and no foreign transaction fees.
Pros
3x points per $1 spent on restaurants, travel, gas stations, transit, popular streaming services, and phone plans
1x points per $1 spent on other purchases
No annual fee
Cons
Points are worth a fixed 1 cent per point, so it isn’t possible to get outsized value
Select “Learn More” to take advantage of this specific offer and learn more about product features, terms and conditions.
Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months – that’s a $200 cash redemption value.
Earn unlimited 3X points on the things that really add up – like restaurants, travel, gas stations, transit, popular streaming services, and phone plans. Plus, earn 1X points on other purchases.
$0 annual fee.
0% intro APR for 12 months from account opening on purchases. 20.24%, 25.24%, or 29.99% variable APR thereafter.
Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Redeem your rewards points for travel, gift cards, or statement credits. Or shop at millions of online stores and redeem your rewards when you check out with PayPal.
Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
Financial Snapshot
APR: 0% intro APR for 12 months from account opening on purchases, 20.24%, 25.24%, or 29.99% variable APR thereafter.
Foreign Transaction Fees: None
The Wells Fargo Autograph card is fantastic for those who want both a 12-month introductory 0% APR offer and a card with tons of opportunities to earn points. This card has a long list of bonus categories, including:
Restaurants (including catering, delivery, and more)
Travel (including flights, hotels, car rentals, cruises, and more)
Gas (including electric vehicle charging stations)
Transit (including subways, ride-shares, parking, tolls, and more)
Popular streaming services (including Apple TV+, Disney+, Hulu, Peacock, and more)
Phone plans (including cell phone and landline providers)
In addition to its great 0% APR offer and bonus categories, the Wells Fargo Autograph card also offers a nice welcome bonus offer, flexible redemption options, cell phone insurance protection, rental car coverage, roadside dispatch, and more, all for a $0 annual fee.
Hot Tip:
Interested in 0% balance transfer cards in addition to 0% APR cards? Here are examples of cards that earn rewards and offer 0% APR for balance transfers.
The Best 0% APR Business Cards
Making a large business purchase and having a 0% APR business credit card to pay back the amount over time can help manage business cash flow.
Is there really such a thing as a credit card that doesn’t charge interest? It would be wishful thinking to believe any credit card never charged interest, but the next best thing might actually be a 0% interest credit card.
A 0% interest credit card (frequently referred to as a “0% APR credit card” — “APR” stands for “annual percentage rate”) is a normal credit card with a special introductory period when no interest is charged on purchases made and balances transferred from other credit cards.
4 Reasons To Consider a 0% APR Credit Card
How do you know if a 0% APR credit card is right for you?
If you have a solid credit history but any of these scenarios could put you in a financial bind, you might want to consider a 0% APR credit card.
An Emergency Arises: Whether it’s a large medical bill, a major car repair, or the furnace stops working in subzero temperatures, you know you’d have to shell out a lot of money. Repaying that considerable expense over time can soften the financial blow of an unexpected emergency.
You Have High-Interest Credit Card Debt: Perhaps you’ve run up some credit card debt and you’re making payments on high-interest credit cards. If you know you could pay off the entire balance within the 0% APR period, it makes sense to transfer those balances to a 0% APR card.
You’re Faced With a Large Purchase or Several Large Purchases: We tend to buy new appliances all at once (when moving into a new home, for example), so it does make sense that they tend to break down around the same time. Whether you’re replacing appliances or need a new riding lawnmower, several large purchases can send any budget into a tailspin. A 0% APR credit card gives you a little breathing room to pay your monthly bills over time.
Tuition Is Due: If your educational institution takes credit cards, you can utilize your 0% APR card to make that tuition payment and repay it over time instead of having to come up with a large lump sum or take out a student loan.
Now that you understand how a 0% APR card works and why you’d want to consider one, let’s look at some of the best credit cards with introductory 0% APR periods that also earn rewards.
How Much Can You Save?
Now that we’ve reviewed examples of cards with 0% APR offers, let’s dig deeper into how 0% APR cards work and go over tips on maximizing these offers.
While plenty of introductory 0% APR offers are available, these offers may only be temporary. In addition, 0% APR periods and subsequent interest rates can change. Before applying, review pricing and fee information on any card you’re considering.
Utilizing a 0% APR Credit Card for a Large Purchase or Expense
When you utilize a 0% APR credit card for a large purchase, you’re just spreading out the repayment of the original purchase price over time. For this reason, 0% APR cards can serve an important role in managing your finances when an unexpected or considerable expense arises.
For example, let’s say you need a new washer and dryer. You’ve found a set for $1,500 and have decided to charge the purchase on your credit card, which has an APR of 16%. You pay $94.28 per month for 18 months until the debt is repaid. The total interest paid would be $197.12.
However, you’d save this entire $197.12 if you made the purchase on a 0% APR credit card with an 18-month introductory 0% APR period.
Image Credit: Greenpath
Bottom Line: Using a 0% APR card for a large purchase and paying off the debt completely before the 0% interest period expires can be an effective way to save hundreds of dollars in interest.
How To Compare and Select a 0% APR Credit Card
Before jumping in and selecting a 0% APR credit card, you should ask yourself a few questions:
What is your primary reason for getting the 0% APR card? For instance, will you use the card for a large purchase?
How many months do you need to pay off the balance completely? Common 0% APR periods include 9, 12, and 18 months.
Are there fees associated with the transactions you plan on making?
Will you make additional purchases on the card while paying down a transferred balance or a large purchase?
Knowing the answers to these questions will help you select the right 0% APR credit card to fit your situation.
Hot Tip: You can benefit from 0% APR cards that have welcome bonuses and earn rewards or cash-back. If you make a large purchase, you generally want to receive rewards or cash-back.
Everything Else You Need To Know
Interest Rates on 0% APR Credit Cards
It’s common to hear people ask, “What’s the interest rate on that credit card?” The problem is, there’s no simple answer to this — credit cards can charge different interest rates for various transactions. Interest rates can also change periodically based on the prime rate.
Purchases: Interest is charged on purchases when the full balance is not paid off at each statement period. This does not happen during the 0% APR period when payments are timely, but any balance remaining after the period has expired incurs current interest rate charges.
Cash Advance: Cash advances may incur fees and a separate APR, frequently higher than the purchase APR.
Penalty APR: If you miss a payment or make a late payment during the 0% APR period, you could be subject to an APR penalty higher than the current purchase APR.
This sample chart shows interest rates for different types of transactions. Image Credit: American Express
Bottom Line:
Credit card issuers must disclose the terms, conditions, fees, pricing, and interest rates associated with each credit card. Before applying for any credit card, you should review this information carefully. There is always a link to this chart on the credit card information and/or application pages.
Things To Look Out For When Using a 0% APR Credit Card
It might sound like a 0% APR credit card is a great solution for paying off high-interest debt or spreading out the repayment of a large purchase over time, and it can be.
If you use the card correctly and follow the rules (better known as “terms and conditions” in the credit card world), a 0% APR credit card can be a real asset in managing your finances.
However, you should proceed cautiously and be aware of triggers that could make your decision to utilize a 0% APR card an expensive one.
Missing a Payment or Making a Late Payment
Missing or making a late payment on a 0% APR card can trigger a penalty interest rate that can significantly exceed the regular interest rate on the credit card. In some cases, this can be close to 30%.
Not all 0% APR cards charge a penalty interest rate. Some charge only the regular interest rate when a payment is late during the 0% APR period. This is still a costly mistake, so make every payment on time.
The penalty interest rate can be temporary and removed at the credit card issuer’s discretion after a specific period, like after 6 months of subsequent on-time payments.
Hot Tip: Set up automatic payments to your 0% APR credit card that are scheduled to be applied well before the due date, and follow up to ensure they’re credited to your account. If, for any reason, the payment isn’t processed correctly (and this does happen), you will still have time to make an on-time payment.
Failure To Repay the Balance by the Deadline
Not paying off your balance before the 0% APR period ends can trigger interest to be charged on the remaining balance. Paying interest on that balance diminishes the value of getting the 0% APR card at all, so plan effectively.
Using the Card for New Purchases
Say you made a large purchase or transferred a large balance to the 0% APR card and created a plan to pay off this balance by the end of the 0% APR period. If you use the card for new purchases, you could get into trouble if you don’t have a plan to pay off those purchases as well.
Bottom Line: To gain the most benefit from a 0% APR card, ensure all payments are made on time, pay off your balance by the expiration of the 0% APR period, and include new purchase amounts (if any) in your repayment plan.
0% APR Versus Deferred Interest
A lot of industry terminology is thrown around in the credit card world, and it can be confusing. For example, you may hear similar-sounding terms such as “0% APR period” or “deferred interest period” in various credit card offers. Pay attention, though, as there is a huge difference.
When we discuss 0% APR credit cards, we’re referring to credit cards with an introductory period (commonly starting when you are approved for the credit card), during which no interest is charged on purchases you make on the card. There may also be a 0% APR for transferring balances.
Other credit cards — usually co-branded retail store credit cards like those offered by Comenity Bank or Synchrony Bank — may provide an introductory period during which interest is deferred on specific purchases. With these cards, interest still accumulates during the interest-free period. It’s just not charged to your account.
If a deferred-interest purchase is not paid off by the deadline, interest is added retroactively back to the purchase date. The interest is also calculated on the entire purchase amount— so you can imagine the interest charges can be significant!
Credit cards with 0% APR work differently and do not incur interest during the 0% APR promotional period. These credit cards also do not charge interest retroactively if you do not pay off your balance by the expiration of the 0% APR period.
Expect, however, to be charged the current interest rate in effect at the time on any purchase balance remaining when the 0% APR promotional period expires.
The 0% APR Period Has Expired. Now What?
If you paid off your balance by the end of the 0% APR, congratulations! You’re probably wondering what you should do with the credit card now.
Should you continue to use it? If you select a rewards-earning credit card that fits your current spending habits, you’ll benefit from continuing to use it. Just make sure you pay off your balance monthly to avoid incurring interest charges.
Should you close it? There is no real reason to close the credit card unless it has an annual fee. When you are approved for a credit card, your credit history clock starts ticking … and a long credit history is good for your credit score.
Also, keeping the card even if you don’t use it often can help your credit utilization, which is the amount of credit you’re using compared to the total amount of credit you have available.
Hot Tip: Read our in-depth article about credit scores to learn more about credit utilization and how it affects your score.
What if you failed to pay off the balance on the card by the end of the 0% APR period? No need to panic — only the amount you haven’t paid off incurs interest charges. Although these charges can be hefty, you’ve hopefully paid down the balance enough to focus on eliminating the remaining balance quickly.
Final Thoughts
Applying for any credit card is a decision you should take seriously; how you manage that card can affect your financial future. Using a 0% APR credit card adds an additional layer of responsibility.
Just like with a regular credit card, you need to make timely payments — but you also need to ensure your balance is paid off before the 0% APR period expires. If not, you’ll incur interest rate charges that negate the benefit of having a 0% APR card.
You should judiciously manage new purchases on the 0% APR card to ensure you can pay those off before the expiration of the interest-free period.
A 0% APR credit card is a fine tool to help you manage your finances and potentially earn a lot of rewards. If you have the discipline to manage the card well, you’ll come out on the other side, reaping the benefits a stronger credit history can bring.
The information regarding the Chase Freedom Flex℠ was independently collected by Upgraded Points and not provided nor reviewed by the issuer. The information regarding the Bank of America® Customized Cash Rewards credit card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
For rates and fees of the Blue Cash Everyday® from American Express, click here.
Frequently Asked Questions
What's the difference between 0% interest on purchases and 0% interest on balance transfers?
A 0% APR on purchases means you can make purchases on your card for a specific period and not be charged any interest. The 0% interest (APR) on a balance transfer means you can transfer a balance from your high-interest credit card to the 0% APR credit card and then pay off the balance over a specific period without interest. One key difference is that 0% APR credit cards can charge a fee for transferring a balance, typically 3% to 5% of the amount transferred.
What are 0% interest rate credit cards and how do they work?
Credit cards with a 0% interest rate are just regular cards that offer a specific period after you’re approved during which you aren’t charged interest for purchases and/or transferred balances from other credit cards. Once this introductory 0% interest period expires, the issuer charges you the current interest rate for any balances in the future.
Are 0% interest credit cards a good idea? What are the drawbacks?
A 0% APR credit card can be a handy financial tool to pay off high-interest credit card debt, pay off a large purchase over time, or effectively finance a large expense interest-free. If you don’t make timely payments or pay off your balance in full before the 0% period expires, you can incur hefty interest charges. You can also get into trouble if you make extensive new purchases on the card and do not budget to pay them off by the deadline.
Are there 0% interest credit cards without an annual fee?
Yes, you will find 0% APR periods on cards with no annual fee. The cards featured in this article do not charge an annual fee.
Should I close my 0% APR credit card after I've paid it off?
If the card has an annual fee and you won’t use it, you should close it. If the card has no annual fee, you may want to keep it open and continue to build your credit history.
What happens if I don't pay off the balance by the end of the 0% interest period?
Any balance you have on the 0% APR credit card when the 0% APR period expires will incur interest charges.
Are there any other fees charged on purchases I make during the 0% APR period?
You are not charged any fees for purchasing on the 0% APR credit card. You may incur fees if you transfer a balance from another credit card to the 0% APR credit card.
Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, detailed content for UP.
This bonus value is an estimated valuation calculated by UP after analyzing redemption options, transfer partners, award availability and how much UP would pay to buy these points.
