Best 0% APR Cards

If you are looking to make a big purchase or transfer high-interest debt, a 0% APR credit card may be the perfect solution. With these cards, you can enjoy a period of no interest charges on purchases or balance transfers, which can save you hundreds or even thousands of dollars in interest payments.

However, not all 0% APR credit cards are created equal, and choosing the right one can be a daunting task. That’s why we’ve put together this guide to help you find the best 0% APR credit card for your needs.

In this guide, we’ll cover the factors to consider when choosing a 0% APR credit card, such as the length of the introductory period, balance transfer fees, rewards programs, annual fees, and credit score requirements. We’ll also highlight the best 0% APR credit cards for balance transfers, purchases, and small businesses, and provide tips for using these cards effectively.

With the information in this guide, you’ll be able to make an informed decision about which 0% APR credit card is right for you and save money on interest charges in the process.

What are 0% APR credit cards?

0% APR (Annual Percentage Rate) is a promotional interest rate that credit card issuers offer to new or existing customers for a limited period of time, usually ranging from 6 to 18 months. During the promotional period, the cardholder is not charged any interest on their purchases or balance transfers, meaning that they can carry a balance on the card without incurring interest charges. However, it’s important to note that this promotional rate only applies for a limited time and once the promotional period is over, the interest rate will revert to the regular rate specified in the card agreement. The 0% APR offer is often used by credit card companies to attract new customers or to encourage existing customers to use their cards more frequently.

0% APR credit cards are credit cards that offer a promotional period during which no interest is charged on purchases, balance transfers, or both. The length of the promotional period varies depending on the card issuer and can range from a few months to over a year.

These cards can be useful for people who are looking to make a large purchase and want to pay it off over time without accruing interest charges. They can also be helpful for those who have high-interest credit card debt and want to transfer it to a card with a lower or 0% APR to save money on interest charges.

It’s important to note that the 0% APR promotional period is temporary, and once it expires, the card’s interest rate will revert to the standard rate. Therefore, it’s essential to pay off the balance before the promotional period ends, or the interest charges can quickly add up.

How are 0% APR credit cards used?

0% APR credit cards can be used in several ways, depending on the individual’s financial situation and goals. Here are some common uses of 0% APR credit cards:

1. Large purchases: If you need to make a big purchase, such as a new appliance or furniture, a 0% APR credit card can be a good option. You can spread out the payments over the promotional period without accruing any interest charges, making the purchase more affordable.
2. Balance transfers: If you have high-interest credit card debt, you can transfer the balance to a 0% APR credit card and pay off the debt during the promotional period without accruing any additional interest charges. This can save you a significant amount of money on interest payments.
3. Debt consolidation: You can use a 0% APR credit card to consolidate multiple high-interest debts into one payment. By doing so, you can pay off the debt during the promotional period and save money on interest charges.
4. Building credit: If you are new to credit or trying to build your credit score, using a 0% APR credit card responsibly can help you establish a positive credit history.

It’s important to note that using a 0% APR credit card effectively requires discipline and responsible credit management. You should have a plan to pay off the balance before the promotional period ends to avoid interest charges and potential debt.

How do 0% APR credit cards work?

0% APR credit cards allow you to make purchases or transfer balances from other credit cards or loans without accruing any interest charges during a promotional period. This means that you can use the card to finance a large purchase or pay off high-interest debt over several months without incurring additional interest charges.

The promotional period typically lasts for a set number of months, ranging from 6 to 18 months depending on the card and the offer. During this time, the card issuer will not charge interest on the balance you carry as long as you make the minimum required payment each month.

It’s important to note that 0% APR credit cards still require you to make payments on the balance you carry. Failure to make the minimum payment each month can result in late fees and damage to your credit score.

Once the promotional period ends, any remaining balance on the card will start to accrue interest charges at the regular interest rate specified in the card agreement. This rate can be higher than the rate on other credit cards, so it’s important to have a plan to pay off the balance before the promotional period ends.

Additionally, some 0% APR credit cards may charge fees for balance transfers or have an annual fee. It’s important to review the card’s terms and conditions carefully to understand any potential fees or charges that may apply.

Overall, 0% APR credit cards can be a useful tool for financing purchases or paying off high-interest debt over time. However, it’s important to use them responsibly and pay off the balance before the promotional period ends to avoid high interest charges.

How to choose the best 0% APR credit card?

Choosing the best 0% APR credit card requires careful consideration of several factors. Here are some key things to keep in mind when choosing a 0% APR credit card:

1. Length of promotional period: The length of the promotional period varies among 0% APR credit cards. Look for a card with a promotional period that aligns with your needs, whether that be for a large purchase or to pay off debt. The longer the promotional period, the more time you have to pay off the balance without incurring any interest charges.
2. Balance transfer fees: Some 0% APR credit cards charge a balance transfer fee, which is typically a percentage of the balance being transferred. Look for a card with a low or no balance transfer fee to save money on the transfer.
3. Rewards programs: If you plan to use the card for purchases, consider a card with a rewards program that aligns with your spending habits. Look for a card that offers cashback or points that you can redeem for travel, merchandise, or other rewards.
4. Annual fees: Some 0% APR credit cards charge an annual fee. Consider whether the benefits of the card outweigh the cost of the fee. If you plan to use the card for a balance transfer, a card with no annual fee may be a better option.
5. Credit score requirements: 0% APR credit cards typically require good or excellent credit scores. Check your credit score before applying for a card to ensure you meet the requirements.
6. Other fees: Some 0% APR credit cards may charge other fees, such as foreign transaction fees or late payment fees. Consider these fees when choosing a card and make sure they align with your spending habits and budget.

By considering these factors, you can choose a 0% APR credit card that aligns with your needs and helps you achieve your financial goals.

What are the benefits of using 0% APR credit cards?

There are several benefits to using 0% APR credit cards, including:

1. No interest charges: The primary benefit of 0% APR credit cards is that they allow you to make purchases or transfer balances without accruing interest charges during the promotional period. This can save you a significant amount of money on interest payments.
2. Lower monthly payments: Because you’re not paying interest during the promotional period, your monthly payments can be lower than they would be with a high-interest credit card. This can help you manage your finances more effectively.
3. Debt consolidation: If you have high-interest credit card debt, you can consolidate it onto a 0% APR credit card and pay it off during the promotional period. This can save you money on interest charges and simplify your debt payments.
4. Rewards programs: Some 0% APR credit cards offer rewards programs, allowing you to earn cashback or points on your purchases. This can help you save money or earn rewards on your spending.
5. Building credit: If you’re new to credit or trying to build your credit score, using a 0% APR credit card responsibly can help you establish a positive credit history.
6. Flexibility: 0% APR credit cards can be used for a variety of purposes, including making large purchases, paying for unexpected expenses, or consolidating debt. This flexibility can be helpful in managing your finances.

Overall, 0% APR credit cards can be a valuable tool in managing your finances, especially if you use them responsibly and pay off the balance before the promotional period ends.

Tips for getting the most out of 0% APR credit cards

If you’re planning to use a 0% APR credit card, here are some tips to help you get the most out of it:

1. Understand the promotional period: Make sure you understand the length of the promotional period and any conditions that may apply, such as minimum monthly payments. This will help you plan how to use the card effectively.
2. Pay on time: Even though you’re not paying interest during the promotional period, it’s still important to make your payments on time. Late payments can result in fees and may negatively impact your credit score.
3. Avoid new debt: It’s best to avoid making new debt on the 0% APR credit card, as this can increase your debt load and make it harder to pay off the balance during the promotional period.
4. Use the card strategically: Consider using the 0% APR credit card for a large purchase or to consolidate high-interest debt. This can help you save money on interest charges and pay off debt faster.
5. Don’t forget about fees: While you won’t be paying interest charges during the promotional period, there may still be fees associated with using the card, such as balance transfer fees or annual fees. Make sure you understand these fees and factor them into your calculations.
6. Plan to pay off the balance: It’s important to have a plan to pay off the balance before the promotional period ends. This will help you avoid interest charges and potential debt.

By following these tips, you can use a 0% APR credit card to effectively manage your finances and achieve your financial goals.

Types of 0% APR credit cards

There are several types of 0% APR credit cards available, including:

1. Balance transfer credit cards: These cards allow you to transfer high-interest debt from other credit cards or loans onto the new card, where you’ll have a promotional period of 0% APR to pay off the balance.
2. Purchase credit cards: These cards offer a promotional period of 0% APR on new purchases made with the card. This can be useful for making large purchases that you want to pay off over time without accruing interest charges.
3. Cashback credit cards: Some cashback credit cards offer a promotional period of 0% APR on purchases as well as cashback rewards for using the card. This can be a good option if you want to earn rewards while also avoiding interest charges.
4. Travel credit cards: Some travel credit cards offer a promotional period of 0% APR on purchases and also offer rewards points or miles for travel-related expenses such as airfare, hotel stays, and rental cars.
5. Business credit cards: Business credit cards may offer a promotional period of 0% APR on purchases, balance transfers, or both. These cards can be useful for small business owners who need to make large purchases or consolidate debt.
6. Student credit cards: Some student credit cards offer a promotional period of 0% APR on purchases, making them a good option for college students who are just starting to build credit.

When choosing a 0% APR credit card, it’s important to consider your specific needs and financial situation to determine which type of card will be most beneficial for you.

Are there business 0% APR credit cards?

Yes, there are business credit cards that offer a 0% APR promotional period for a limited time. These cards can be a good option for small business owners who need to make large purchases or transfer high-interest debt from other credit cards or loans.

Business credit cards with 0% APR may offer a promotional period on purchases, balance transfers, or both. Some may also offer rewards points or cashback for business-related expenses such as office supplies, travel, or advertising.

It’s important to carefully review the terms and conditions of the business credit card, including any fees associated with the card, such as an annual fee or balance transfer fee. It’s also important to have a plan to pay off the balance before the promotional period ends, as the interest rate will typically revert to the regular rate specified in the card agreement.

Overall, a business credit card with 0% APR can be a useful tool for managing cash flow and expenses, as long as it’s used responsibly and strategically.

How to best compare 0% APR credit cards?

When comparing 0% APR credit cards, there are several factors to consider to ensure that you choose the best card for your needs. Here are some key things to look for when comparing 0% APR credit cards:

1. Length of promotional period: The length of the 0% APR promotional period can vary between cards, typically ranging from 6 to 18 months. Longer promotional periods can give you more time to pay off your balance without accruing interest charges, but may also come with higher fees or stricter eligibility requirements.
2. Regular APR: Once the promotional period ends, the card’s regular APR will apply to any remaining balance. Make sure to compare the regular APRs of different cards to find the one with the lowest rate.
3. Balance transfer fees: If you’re planning to transfer a balance from another credit card or loan, you’ll want to check the balance transfer fees associated with each card. Some cards may offer a 0% APR promotional period on balance transfers, but charge a fee of 3% to 5% of the amount transferred.
4. Annual fees: Some 0% APR credit cards may come with an annual fee, which can offset the savings from avoiding interest charges. Be sure to factor in any annual fees when comparing cards.
5. Rewards programs: Some 0% APR credit cards may also offer rewards points or cashback on purchases. If you plan to use the card frequently, consider choosing a card with a rewards program that aligns with your spending habits.
6. Credit requirements: To be approved for a 0% APR credit card, you’ll typically need to have a good to excellent credit score. Be sure to check the card’s eligibility requirements and review your own credit report to ensure that you meet the criteria.

By comparing these factors across different 0% APR credit cards, you can find the card that best fits your needs and helps you save money on interest charges.

Pros and cons of 0% APR credit cards

Like any financial product, 0% APR credit cards come with both advantages and disadvantages. Here are some pros and cons to consider when deciding whether a 0% APR credit card is right for you:

Pros:

1. Interest-free financing: One of the most significant benefits of 0% APR credit cards is that they allow you to finance purchases or transfer balances from other credit cards or loans without accruing any interest charges during the promotional period. This can be an excellent way to save money on interest charges and pay off debt more quickly.
2. Flexibility: 0% APR credit cards give you the flexibility to make purchases or transfer balances without incurring immediate interest charges. This can be particularly helpful if you need to make a large purchase or consolidate high-interest debt.
3. Rewards programs: Some 0% APR credit cards offer rewards programs that allow you to earn points or cashback on purchases. This can help you earn rewards while paying off your balance interest-free.

Cons:

1. High regular APR: Once the promotional period ends, the card’s regular APR will apply to any remaining balance. These regular APRs can be higher than the rates on other credit cards, making it important to pay off the balance before the promotional period ends.
2. Fees: Some 0% APR credit cards may charge fees for balance transfers or have an annual fee, which can offset the savings from avoiding interest charges. Be sure to factor in any potential fees when comparing cards.
3. Credit requirements: To be approved for a 0% APR credit card, you’ll typically need to have a good to excellent credit score. If you don’t have a high credit score, you may not qualify for the best offers or may be offered a shorter promotional period.
4. Temptation to overspend: With the ability to make purchases without immediate interest charges, there may be a temptation to overspend and accumulate debt that can be difficult to pay off later.

Overall, 0% APR credit cards can be a useful tool for financing purchases or paying off high-interest debt over time. However, it’s important to use them responsibly, pay off the balance before the promotional period ends, and be aware of any potential fees or charges that may apply.

Tips on how to make the most out of your 0% APR credit card

If you have a 0% APR credit card, there are several ways you can make the most of it and maximize your savings. Here are some tips:

1. Use it for large purchases: Since you won’t be charged any interest during the promotional period, a 0% APR credit card can be an excellent option for financing large purchases. Just be sure to have a plan to pay off the balance before the promotional period ends.
2. Pay more than the minimum payment: While the minimum payment is all that’s required to avoid late fees, paying more each month will help you pay off the balance faster and avoid interest charges when the promotional period ends.
3. Consider a balance transfer: If you have high-interest credit card debt, consider transferring the balance to your 0% APR credit card. This can help you save money on interest charges and pay off the debt faster. Just be sure to factor in any balance transfer fees when deciding whether to do this.
4. Avoid new purchases: If you’re using your 0% APR credit card to pay off debt, avoid making new purchases on the card. This can add to your balance and make it harder to pay off the debt before the promotional period ends.
5. Use rewards programs: Some 0% APR credit cards offer rewards programs that allow you to earn points or cashback on purchases. If your card has a rewards program, be sure to take advantage of it to earn rewards while paying off your balance interest-free.
6. Keep track of the promotional period: Make sure you know when the promotional period ends so that you can pay off the balance before interest charges start accruing. Set up reminders or automatic payments to help you stay on track.

By following these tips, you can make the most of your 0% APR credit card and save money on interest charges. However, it’s important to use the card responsibly and pay off the balance before the promotional period ends to avoid high interest charges.

How long does the 0% APR last on credit cards?

The length of the promotional 0% APR period on credit cards varies depending on the issuer and the specific card. The promotional period typically ranges from 6 months to 18 months, but some cards offer promotional periods that can last up to 24 months or longer.

It’s important to note that the length of the promotional period can be affected by a variety of factors, such as your credit score and credit history. If you have excellent credit, you may be able to qualify for a longer promotional period, while those with lower credit scores may only qualify for a shorter promotional period.

It’s also important to be aware that the promotional period is not a guarantee of interest-free financing for the entire period. If you make a late payment or fail to pay off the balance before the end of the promotional period, you may be charged interest retroactively from the date of the purchase.

To make the most of a 0% APR credit card, it’s important to pay close attention to the length of the promotional period and create a plan to pay off the balance before the promotional period ends.

What happens when the 0% APR promotion ends?

When the 0% APR promotion ends, the credit card issuer will typically begin charging interest on any remaining balance. The interest rate will vary depending on the card issuer and may be significantly higher than the 0% APR rate. It’s important to read the terms and conditions of your 0% APR credit card carefully to understand when the promotional period ends and what the interest rate will be after the promotion ends.

To avoid paying high-interest charges after the 0% APR promotion ends, it’s important to pay off the balance in full before the promotional period ends. If you’re not able to pay off the balance in full, consider transferring the balance to another 0% APR credit card or a credit card with a lower interest rate to minimize interest charges. Additionally, be sure to make payments on time to avoid late fees and penalty APRs, which can also increase your debt.

Who should apply for a 0% APR credit card?

A 0% APR credit card can be a great option for individuals who want to make a large purchase or pay off high-interest debt without incurring additional interest charges. Here are some specific groups of people who may benefit from applying for a 0% APR credit card:

1. Individuals with high-interest credit card debt: If you’re carrying a balance on a credit card with a high-interest rate, a 0% APR credit card can help you save money on interest charges and pay off the debt faster.
2. Individuals who want to make a large purchase: A 0% APR credit card can be a good option if you want to make a large purchase, such as furniture or electronics, and pay it off over time without incurring interest charges.
3. Individuals who want to consolidate debt: Some 0% APR credit cards offer balance transfer promotions that allow you to transfer high-interest debt from other credit cards to the 0% APR card. This can help you consolidate debt and save money on interest charges.
4. Individuals with good credit: To qualify for a 0% APR credit card, you typically need to have good to excellent credit. If you have a strong credit history, you may be able to take advantage of the promotional financing offer.

It’s important to note that while a 0% APR credit card can be a useful tool, it’s important to use it responsibly and pay off the balance before the promotional period ends to avoid high interest charges. Additionally, if you’re using a 0% APR credit card to pay off debt, it’s important to address the underlying issues that led to the debt in the first place to avoid falling into debt again.

The future of 0% APR credit cards

The future of 0% APR credit cards is uncertain and may be influenced by a variety of factors such as changes in the economy, interest rates, and consumer behavior. However, it’s likely that these types of credit cards will continue to be offered by credit card companies, as they are popular with consumers and can be a profitable product for issuers.

One potential trend that may emerge in the future is an increase in the length of the promotional period offered by 0% APR credit cards. As competition among credit card companies intensifies, issuers may offer longer promotional periods to attract consumers and stand out from the competition.

Another trend that may emerge is the use of 0% APR credit cards for financing purposes beyond traditional credit card purchases. For example, some credit card issuers may offer promotional financing on personal loans or other types of loans to compete with traditional lenders.

Additionally, advancements in technology and changes in consumer behavior may influence the future of 0% APR credit cards. For example, mobile payment options and online shopping may become more prevalent, and credit card companies may need to adapt their promotional financing offers to meet the changing needs and preferences of consumers.

Overall, the future of 0% APR credit cards is likely to be shaped by a combination of market forces, consumer behavior, and technological advancements. However, it’s likely that these types of credit cards will continue to be a popular option for consumers looking to save money on interest charges and finance purchases.

Are there annual fees for 0% APR credit cards?

Some 0% APR credit cards come with annual fees, while others don’t. It’s important to carefully read the terms and conditions of each credit card to determine whether an annual fee is charged. If there is an annual fee, you’ll need to consider whether the benefits of the card, such as rewards programs or cash back offers, outweigh the cost of the annual fee. However, there are also many 0% APR credit cards available that do not charge an annual fee, so it’s possible to find a card that fits your needs without incurring any additional costs.

Can you transfer balances to a 0% APR credit card?

Yes, many 0% APR credit cards allow you to transfer balances from other credit cards with high-interest rates. This is commonly known as a balance transfer. By transferring your balance to a 0% APR credit card, you can save money on interest charges and pay off your debt faster. However, it’s important to read the terms and conditions of the 0% APR credit card carefully to determine whether there are any balance transfer fees or other restrictions that may apply. Additionally, it’s important to make sure you pay off your balance before the introductory 0% APR period ends, as the interest rate may increase significantly at that point.

What credit score do you need to qualify for a 0% APR credit card?

The credit score required to qualify for a 0% APR credit card can vary depending on the issuer and the specific card. However, most 0% APR credit cards typically require a good to excellent credit score, which is generally considered to be a FICO score of 670 or higher.

If you have a lower credit score, you may still be able to qualify for a 0% APR credit card, but you may not receive the best terms and may be offered a lower credit limit. Alternatively, you could work on improving your credit score before applying for a 0% APR credit card by making payments on time, paying down debt, and minimizing new credit applications.

It’s important to note that meeting the credit score requirement is just one factor that issuers consider when evaluating credit card applications. They also take into account other factors, such as your income, debt-to-income ratio, and credit history, when deciding whether to approve your application and what terms to offer you.

What’s the difference between interest and APR?

Interest and APR (Annual Percentage Rate) are two terms that are often used interchangeably, but they are not the same thing.

Interest is the cost of borrowing money. It is usually expressed as a percentage of the outstanding balance on a loan or credit card. For example, if you have a credit card balance of $1,000 and the interest rate on the card is 20%, you will be charged $200 in interest over the course of a year.

APR, on the other hand, is a broader measure of the cost of borrowing money. It includes not just the interest rate but also any fees or other charges associated with the loan or credit card. This means that the APR is typically higher than the interest rate, as it takes into account all of the costs of borrowing. For example, if a credit card has an interest rate of 20% and an annual fee of $50, the APR would be higher than 20%.

When comparing credit cards or loans, it’s important to look at both the interest rate and the APR to get a full understanding of the cost of borrowing. The APR is typically a more accurate measure of the total cost, but the interest rate can be a useful tool for comparing different loans or credit cards with similar terms.

Glossary of Common APR terms

Here are some common terms related to APR that you may encounter:

1. Annual Percentage Rate (APR): The annualized interest rate plus any other fees or charges associated with borrowing money.
2. Interest rate: The rate at which interest is charged on a loan or credit card balance.
3. Introductory rate: A temporary interest rate that is offered for a limited time when you first open a credit card or take out a loan.
4. Fixed rate: An interest rate that remains the same for the life of a loan or credit card.
5. Variable rate: An interest rate that can fluctuate over time, based on changes in a benchmark interest rate.
6. Balance transfer rate: A promotional interest rate offered by credit card issuers for balances transferred from other credit cards.
7. Purchase APR: The interest rate charged on new purchases made with a credit card.
8. Penalty APR: A higher interest rate that is charged if you miss a payment or violate the terms of your credit card agreement.
9. Annual fee: A fee charged by some credit cards for the privilege of using the card each year.
10. Late payment fee: A fee charged when you don’t make a payment on your loan or credit card by the due date.
11. Balance transfer fee: A fee charged by credit card issuers for transferring a balance from one card to another.
12. Cash advance APR: The interest rate charged for cash advances on a credit card, which is typically higher than the purchase APR.

These are just a few of the many terms related to APR that you may encounter when borrowing money. It’s important to understand what these terms mean and how they can impact the cost of borrowing before making any decisions about loans or credit cards.

FAQs about 0% APR credit cards