0% APR Credit Cards

A 0% APR means that you pay no interest on new purchases and/or balance transfers for a certain period of time. The best 0% APR credit cards give 15-18 months without interest. But the average 0% APR intro period is about 10.5 months for cards offering 0% purchases. And it’s around 12 months for the average card with 0% on transfers.

A 0% APR does not keep you away from monthly payments, nor does it completely remove interest out of the equation. You still have to make monthly minimum payments to keep your 0% APR. And if you don’t pay off your balance by the end of the 0% intro period, you’ll have to pay interest on whatever balance remains. The penalty is even worse with many retailers’ 0% financing offers. If you don’t pay off your full balance in time, interest will retroactively apply to your entire original balance – as if the 0% APR was never there.

There are a few other things you should keep in mind when thinking about 0% APRs, too.

0% APR Key Takeaways:

• You pay no interest on your purchases and/or balance transfers for 2 to 21 months, depending on the card.
• 0% APRs make debt cheaper to pay off, which helps you get out of debt faster.
• A 0% APR does not free you from the responsibility of making monthly payments. You must pay at least your monthly minimum to avoid being classified as late. Late payments damage your credit score.
• Zero percent credit cards tend to have fairly high regular APRs. So you should strive to bring your balance to zero by the end of the 0% APR period, when regular rates take effect.

It’s also important to note that you won’t only find 0% APRs on credit cards. You may see auto loans with them, for example. Just be sure to always read the terms in detail before signing. You don’t want to end up with deferred interest instead of a true 0% APR.

The longest 0% APR credit cards are the Citi Simplicity Card (0% for 21 months on balance transfers), the U.S. Bank Visa Platinum Card (0% for 20 months on purchases and balance transfers), and the Wells Fargo Visa Platinum Card (0% for 18 months on purchases and transfers). They all have $0 annual fees, but watch out for transfer fees.

A long period of 0% interest can be really helpful if you need to make a big purchase but can’t pay it all off right away. You can avoid interest entirely if you pay in full by the time the intro rate ends. And if you can’t manage that, you’ll at least have a smaller balance when interest kicks in.

It’s important to note that some store cards may offer 0% interest for longer than 21 months, but they use deferred interest. That is, you earn interest on your balance during the 0% period but don’t have to pay that interest if and only if you bring your balance to $0 before the 0% period ends. The JCPenney Card is one example, offering 48 months of deferred interest. But those cards are best avoided because there’s a chance you’ll get blindsided by interest charges. So they’re not really eligible to be in the running for longest 0% APR.

Here are the longest 0% APR credit cards:

• Citi Simplicity: 0% for 21 months on balance transfers and 0% for 12 months on purchases. 5% transfer fee. No annual fee and no late fees. Requires good credit.
• U.S. Bank Visa Platinum: 0% for 20 months on purchases and 0% for 20 months on balance transfers. 3% balance transfer fee. No annual fee. Requires excellent credit.
• Wells Fargo Platinum Visa: 0% for 18 months on purchases and 0% for 18 months on balance transfers. 3% balance transfer fee. No annual fee. Requires good credit.
• HSBC Gold Mastercard: 0% for 18 months on purchases and 0% for 18 months on balance transfers. 4% balance transfer fee. No annual fee. Requires good credit.

None of these cards offer rewards, but they’re meant for financing rather than regular spending. And you can use a different card for purchases you’ll pay in full each month. All of these cards also require at least good credit (so you should shoot for 700+ before you apply).

Credit cards with 0% APR for 21 months used to be common, but there’s only one credit card with no interest for 21 months right now: the Citi Simplicity card. Citi Simplicity offers 0% for 21 months on balance transfers only. That’s the longest interest-free period of any balance transfer card. But there is a transfer fee of 5% (min $5). And you have to transfer your balance within four months of being approved for an account to get the 0% rate. Citi Simplicity also offers 0% for 12 months on purchases. Plus, there are no late fees or penalty APRs.

To avoid interest on a credit card, either pay the full statement balance by the due date every billing period or maintain a $0 balance by not charging any purchases to your credit card account. There is no revolving balance for a credit card’s interest rate to apply to in either case.

More specifically, it’s impossible to owe interest without buying anything, and even a card with no balance reports positive information to the credit bureaus every month. Alternatively, making purchases and paying off the full balance listed on the monthly statement by the due date avoids interest thanks to the so-called “grace period” that most cards have. That basically means people who consistently pay their bill in full get an opportunity to do so before interest applies to their purchases.

But interest is most often a concern when you need to buy something now but won’t have all the money for a while. And in that case, the best way to avoid interest on a credit card is to get a card with a 0% introductory APR. Keep reading below to learn more about that option and the rest of the best ways to avoid credit card interest charges.

How to Avoid Interest on Credit Cards:

1. Don’t make purchases, balance transfers or cash advances. Not using your card guarantees no interest, as long as you pay any annual or monthly fees it may charge. And the issuer will still report positive information to the credit bureaus each month.
2. Schedule monthly payments for your full statement balance. As long as you always pay the full balance listed on your monthly statement by the due date, the issuer won’t charge interest. Set up automatic monthly payments from a bank account for the full balance so you don’t need to remember. Just make sure your bank account balance exceeds the amount you charge.
3. Use a 0% credit card, and get out of debt before the regular APR kicks in. Lots of credit cards offer 0% intro rates on purchases, balance transfers or both for a certain number of months after account opening. Your balance won’t accrue interest during that period if you make the minimum payment each month. After the 0% rate expires, the regular interest rate kicks in.

Final Thoughts

It’s not too hard to avoid interest on a credit card if you know what to do. If you’re in the market for a new card and need to finance a big purchase, getting a 0% card is the best option. If you already have debt, you can move the balance to a 0% balance transfer card and pay it off before the intro period expires. WalletHub’s credit card payoff calculator can help you.

The best 0% APR travel credit card is Discover it Miles. It offers a 0% APR on purchases for your first 14 months of card membership. And it also gives a reduced rate on balance transfers, with a 10.99% APR for 14 months. That’s about the longest introductory period you’ll see on a travel card, which focus more on rewards than financing. 

That said, there are other travel cards with 0% APRs on purchases. Some have 0% balance transfers, too, like the Frontier Airlines card. Other cards, like Amex Blue Cash Preferred, aren’t necessarily focused on travel but combine great rewards with 0% APRs and thus could be useful.

Here are the best 0% APR travel credit cards:

• Discover it Miles: 0% purchase APR for 14 months. 
  10.99% balance transfer APR for 14 months (3% fee). 1.5 miles per $1 on all purchases. First year’s miles matched. No annual fee. No foreign transaction fee. Good credit needed.
• Capital One VentureOne: 0% purchase APR for 12 months. 
  20,000 bonus miles for spending $1,000 in the first 3 months. 10 miles per $1 at hotels.com/venture, and 1.25 miles per $1 on all other purchases. No annual fee. No foreign transaction fee. Good credit needed.
• Bank of America Travel Rewards: 0% purchase APR for 12 months. 
  20,000 bonus points when you spend $1,000 in the first 90 days. 3 points per $1 at the Bank of America Travel Center, 1.5 everywhere else. 10% additional points if you have a Bank of America checking or savings account. No annual fee. No foreign transaction fee. Excellent credit needed.
• Frontier Airlines Credit Card with No Annual Fee: 0% balance transfer APR for 15 months (3% fee).
  10,000 bonus miles for making your first purchase (no required timeframe). 1 mile per $1 on Frontier Airlines purchases, 1 mile per $2 everywhere else. No annual fee. 3% foreign transaction fee. Miles don’t expire as long as you use your card every 6 months. Good credit needed.
• JetBlue Card: 0% balance transfer APR for 12 months (3% fee).
  10,000 bonus miles for spending $1,000 in the first 90 days. 3 points per $1 on JetBlue purchases, 2 at restaurants and grocery stores, 1 everywhere else. Share points with Family Pooling. 50% savings on in-flight purchases. No annual fee. No foreign transaction fee. Good credit needed.
  
• Amex Blue Cash Preferred: 0% purchase APR for 12 months. 0% balance APR for 12 months (3% fee). 
  $200 statement credit for spending $1,000 in the first 3 months. 6% cash back on your first $6,000 at U.S. supermarkets, 3% on gas and at select department stores, 1% on everything else. $95 annual fee. 2.7% foreign transaction fee. Good credit needed.
• China Airlines Credit Card with No Annual Fee: 0% balance transfer APR for 6 months (5% fee).
  500 bonus miles for making your first purchase in the first 3 billing cycles. 1 mile per $1 on China Airlines purchases, 1 mile per $2 everywhere else. No annual fee. No foreign transaction fee. Good credit needed.

If you’re looking to finance an upcoming trip, Discover it Miles is probably your best bet, since it’ll give you the longest amount of time before interest kicks in.