Best 0% APR Credit Cards

A 0% APR is good for your credit if you take advantage of the introductory period to pay off your debt in full. While credit card APRs don't directly affect your credit scores, you can bring down a large balance faster if you don't have to pay interest, which will ultimately help your credit score. Using a 0% APR credit card irresponsibly, however, can have the opposite effect.

With a 0% APR credit card, you don't pay any interest on new purchases and/or balance transfers for a certain amount of time. The average length of 0% interest is 12 months on purchases and 12 months on balance transfers. A 0% APR credit card can have a positive effect on your credit, but it all comes down to how you use it.

Things to Consider When Building Credit with a 0% APR Credit Card

• Choose a 0% APR credit card that suits your financial needs. It is usually best to apply for a card with a long 0% APR offer, because it will give you more time to pay off your balance. And if you keep your account in good standing, it will eventually help you build credit.
• A new credit card might affect your score. Keep in mind that regardless of the card’s APR, a new credit card application will result in a hard pull of your credit report. This inquiry may create a short term drop of your credit score.
• Avoid the urge to overspend. It goes without saying that you'll still have to repay everything you charge to your card. Rather than buying on impulse, come up with a reasonable spending plan that takes full advantage of the 0% APR on purchases.
• Bring your balance down to zero by the end of the 0% APR period. Cards with 0% intro APRs tend to have high regular interest rates. Regular APRs go into effect as soon as the promotional period expires, and they usually apply to any balance remaining at that time. Some retailers offer deferred-interest financing, which means you will retroactively owe interest on the entire original purchase amount.
• Remember to make monthly payments. Regardless of whether your balance is accruing interest, you still owe minimum monthly payments. Missing payments can considerably damage your credit score, and it also puts you at risk of losing the 0% APR period altogether.
• Keep your credit utilization rate low. It's generally a good idea to charge large purchases to a 0% APR credit card so you can pay back the debt over time while avoiding interest. However, a credit utilization rate over 30% will temporarily impact your credit score in a negative way.

How 0% Loans Affect Your Credit

Installment loans, such as car loans, also offer 0% deals, but they don't affect your credit score in the exact same way. Installment loans are not factored into your credit utilization score, as credit utilization only measures your use of credit cards and other revolving lines of credit. That said, a loan - and your payment record on a loan - will impact your credit score overall, so make timely monthly payments.

To keep track of your credit score while repaying a debt with a 0% interest deal, you can sign up for a free WalletHub account.

The biggest pros and cons of 0% APR credit cards are the opportunity for interest-free debt repayment, on the positive side, and the potential for overspending due to the lack of an immediate penalty for carrying a balance from month to month, on the negative side. Getting a 0% APR credit card for a big purchase or a balance transfer can save a cardholder lots of money that they’d otherwise pay in interest. That can make the difference...

A 0% APR means that you pay no interest on new purchases, balance transfers or both for a certain period of time after you open the credit card account. The best 0% APR credit cards on the market currently give 15-21 months without interest. The average 0% APR intro period is about 12 months for cards offering 0% on purchases, according to WalletHub’s Credit Card Landscape Report, and around 13 months for the average card with 0% on balance transfers.

A 0%...

You can get a 0% APR credit card if you have an above-average credit score and meet the minimun income requirements. Credit cards offering a 0% intro APR period are usually geared toward people with good credit or better.

Best 0% APR Credit Cards

If you don’t have a good credit score, you probably won’t be able to qualify for a 0% APR credit card. In this case, the best approach is to first apply for...

The best way to use a 0% APR 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 18% regular APR, according...

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...

Zero-interest credit cards charge a 0% interest rate on purchases and/or balance transfers for the duration of the introductory period – typically from 6 to 21 months, depending on the card. When the intro APR period ends, the regular interest rate kicks in for any remaining balance and any future purchases or balance transfers charged to the card. The average 0% APR period lasts for about 11 months.

Due to the fact that 0% APR credit cards...