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 mean you are excused from monthly payments, nor does it mean interest is completely 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.

Here’s what a 0% APR means for you:

• 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.

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.

The easiest ways to avoid interest on a credit card are to simply not make any purchases and to pay your bill in full by the due date every month. You can’t owe interest if you don’t buy anything, and even a card with zero balance reports positive information to the bureaus. Alternatively, if you make purchases and pay off the balance listed on your monthly statement by the due date, you’ll avoid 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 one with a 0% introductory APR. 

Here’s 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 you’ll still have positive information reported to the credit bureaus each month.
2. Schedule monthly payments for your full statement balance.
   As long as you pay the full balance listed on your monthly statement by the due date, the issuer won’t charge interest. So it’s a good idea to set up automatic monthly payments from a bank account. That way, you won’t have to worry about forgetting. 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, so long as you make the minimum payment each month. The regular interest rate will start to apply to any balance remaining at the end of the intro period. 

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. You can use WalletHub’s credit card payoff calculator to 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.

The best way to use a 0% credit card is with a clear plan. Interest-free credit cards aren’t always available. So you can’t just assume that you’ll be able to transfer whatever balance remains at the end of your new card’s 0% intro term to yet another 0% credit card. And exposing much of a balance to a card’s regular interest rate is a costly proposition. The average 0% credit card has a 17.86% regular APR, according to WalletHub’s latest Credit Card Landscape Report.

As a result, using a 0% card correctly starts with calculating how long it will take you to repay your debt (without interest). This will tell you how long of a 0% intro period you’ll need and how important each card’s regular APR will be.

The second step is to check your latest credit score, which you can do for free on WalletHub. This will tell you which, if any, zero-interest credit card you can qualify for.

Next, you’ll need to compare whatever eligible offers remain. In doing so, consider all of the various account terms that could affect your overall financing costs. That includes the length of the 0% period, the annual fee, the regular APR and if you’re trying to reduce the cost of existing debt, the balance-transfer fee. And WalletHub’s Credit Card Payoff and Balance Transfer calculators are perfect for the task.

After you find the best 0% APR card for your needs, submit an application and, hopefully, get approved, your focus should shift to making on-time monthly payments and reaching debt freedom as quickly as possible. And the best way to accomplish those goals is to set up automatic monthly payments for your budgeted amount.

Many people assume credit cards with 0% APRs are always around. But they’re actually just limited-time offers. They tend to be plentiful when the economy is strong and scarce when credit card companies believe the risk of nonpayment is too high.

That’s why it’s best to act as if another 0% card will not be available to bail you out. It’s also why you should consider a 0% card’s regular APR if there’s a chance you won’t be debt-free by the end of the intro period. You never really know when the economic tides or issuer policies will shift, after all. And a lot of 0% credit card users learned a costly lesson about not planning for the worst during the Great Recession.

It’s also worth noting that even when 0% APR credit cards are available, their terms still fluctuate over time. For example, the average 0% credit card offer had a 7.29-month intro period at the end of 2010. And that grew to 10.27 months in Q3 2013, before dipping to 9.85 months at the end of 2016. So getting the best 0% credit card deal is part good timing and part opportunism.

Credit card companies generally make money off of fees and interest. So it’s understandably confusing that they would sacrifice the interest part of the equation, if only for a limited time, especially since most 0% cards don’t charge annual fees. But there are three main reasons why banks and credit unions offer 0% APR credit cards:

1. To entice new customers. Zero percent intro rates are eye-catching, and banks can market their other products to new cardholders in order to make money.
2. To encourage more spending. Credit card companies make money from so-called interchange fees every time you make a purchase. And the more debt you rack up, the less likely you are to repay your full balance within the 0% term.
3. To make money from interest. This might seem a bit counterintuitive, but issuers know that many people will carry a balance for longer than their 0% intro rate is available. And that’s when they hit you with a high regular APR. The current average is 17.86%. In other words, credit cards with no interest whatsoever don’t actually exist.

These reasons also help to explain why credit cards don’t have permanent 0% rates. And the fact that issuers offer 0% APRs to make money, not just out of the goodness of their hearts, is why you should always be on the lookout for hidden costs and deals that seem too good to be true.

“If consumers actually routinely borrowed at 0% without paying any fees or interest, it would be difficult for credit card companies to earn a profit on these deals,” said Michael Simkovic, an associate professor at the Seton Hall University School of Law who studies the credit regulations. “Customers just really have to read the fine print, compare the total cost of borrowing the amount they need for the time they need it (including interest and fees) and be very, very careful.”

Believe it or not, 0% APR credit cards aren’t for everyone. In fact, there are three main situations in which using a 0% card is probably a bad idea.

1. If you always pay your monthly bill in full. You’ll save more money with one of the market’s best rewards credit cards if you don’t plan to carry a balance from month to month. And even if you do need a 0% credit card for big-ticket purchases that will take longer than a month to repay, you should still have a rewards card for everyday spending.
2. If you’ll spend more than you would otherwise. Spending can easily get out of hand without interest to worry about. But remember, you have to pay your full balance at some point. And if you do spend more than you can afford to repay before regular rates take effect, interest charges will quickly erase any prior savings.
3. If it’s a 0% store credit card. All of the major store credit cards with 0% intro rates use a dangerous feature called deferred interest, according to a 2016 WalletHub study. Deferred interest means that if you’re late with a monthly bill payment or you fail to repay your full balance during the 0% intro period, interest will retroactively apply to your entire original purchase amount at the card’s regular rate – like the 0% offer never existed.

Finally, it’s worth noting that you might not even be able to get a 0% credit card if you have fair, limited or bad credit. So checking your credit score for free on WalletHub is one of the steps in determining whether a 0% APR is in the cards.

Amex Blue Cash Everyday might be your best option. Can't really beat 3% cash back at supermarkets, 2% at gas stations and select department stores and 1% on the rest of your purchases. Plus, you get a 0% APR on purchases for 15 months. This is a great card especially considering that rewards credit cards tend not to offer long 0% periods and 0% cards lack in the rewards department.

Most of the time, though, it's best to keep separate cards for separate purchases. You can get both a rewards credit card and a 0% card to focus on earning for one and financing for the other. I found some good ones on WalletHub's rewards cards page and 0% cards page​​​​​​​. Good luck!