Does 0% APR have interest?

If you have 0% APR on a credit card, it means you won’t be charged interest on purchases or balance transfers during the promotional period, as long as you make at least minimum monthly payments. The catch is that when the promotional APR period ends, you’ll pay interest on any remaining balance at the card’s regular APR. The regular rate also applies to any new purchases or balance transfers made once the intro APR expires.… read full answer

Key Things to Know If You Have a 0% APR

0% APR cards typically have high regular APRs

The average regular interest rate for credit cards with a 0% APR on new purchases is about 17.66%. For credit cards with a 0% intro rate on balance transfers, it’s around 17.32%. It’s best to pay off your intro balance before the 0% APR expires and then pay any future balances in full by the due date. You can use a credit card calculator to come up with a payment plan.

Some 0% APR offers are not what they seem

Not all 0% APR offers are created equal. Store credit cards commonly offer a 0% APR on purchases, but with deferred interest. With a deferred interest promotion, if there’s a balance left after the 0% APR offer expires, the regular interest rate will be charged on the full purchase amount retroactively from the purchase date.

Mistakes could cancel your 0% APR

Be aware that if you have a 0% APR, you may lose that intro rate if you make a late payment. If the issuer revokes your 0% APR offer, the regular rate or a higher penalty APR will immediately apply to your existing balance.

If you’re in the market for a credit card with a 0% intro APR, take a look at our editors’ picks for the best 0% APR credit cards for 2022. Bear in mind, though, that many credit cards with a 0% intro APR require good or excellent credit for approval.

A 0% APR is not good for your credit when you abuse the interest-free period by overspending, because it will eventually lead to expensive finance charges, high credit utilization and missed payments. Plus, every time you apply for a new 0% APR credit card, it will hurt your credit score temporarily.… read full answer

On the other hand, a 0% intro APR can be good for your credit if you use the lack of interest charges to reduce either the amount of debt that you owe or the total cost of financing important big-ticket purchases.

You can estimate the effect that getting a new 0% APR credit card and reducing your debt will have on your credit score by using WalletHub’s free credit score simulator. Signing up for a free WalletHub account will also help you keep tabs on your credit score, with daily updates.

A 0% APR for 15 months means you will pay no interest on new purchases or balance transfers for 15 consecutive billing periods, as long as you make at least the minimum monthly payments along the way. When the interest-free introductory period ends, the credit card’s regular interest rate will apply to any remaining balance.… read full answer

Credit Cards That Offer 0% Intro APR for 15 months

• American Express Cash Magnet® Card*
• Bank of America® Travel Rewards Credit Card for Students
• Bank of America® Unlimited Cash Rewards credit card
• Capital One Quicksilver Cash Rewards Credit Card
• Chase Freedom Unlimited®
• Citi Rewards+® Card
• U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
• Wells Fargo Active Cash® Card

If you’re looking to save money on either new purchases or balance transfers, you should also consider credit cards that have 0% APR periods longer than 15 months. You can check out our editors’ picks for the best 0% APR credit cards and the best balance transfer credit cards to see more options.

*All information about the American Express Cash Magnet® Card has been collected independently by WalletHub. The American Express Cash Magnet® Card is no longer available to new applicants through WalletHub, but may be available on the American Express website.