0% Intro APR Credit Cards

Comparing Zero Interest Credit Card Offers

By: Laura Mohammad

Updated: June 19, 2018

The best of us get into trouble with our credit cards. We might have had back-breaking medical bills. Or the car broke down again. The fact is, while credit cards are partly for convenience, sometimes they can seem rather inconvenient because of a steep balance.

That's where 0% intro APR offers come in. While not a cure-all, a card with a 0% APR offer on purchases, balance transfers or both can help pull you up out of ever-building debt by halting the interest charges that come with carrying a balance. But these offers aren't forever – they can range from 6 months to as high as 18 months or longer, depending on the card.

To make the offer work for you, you need to figure out how you got into this situation; plan your way out of the debt by figuring out how many months it will take you to pay it off; and take steps to avoid this situation again. But, we're here to help. We evaluated over 1,000 credit cards with a 0% intro APR offer and calculated the estimated savings of each offer and the other benefits for each card. Below are our top picks for the best zero interest credit cards along with other helpful information on choosing the card right for you and avoiding interest payments. Here, we look at:

• Best cards
• Methodology
• Intro to 0% APR credit cards
• Pros and cons of the best cards
• What is a go-to APR?
• Average interest rates
• What determines the APR on a credit card
• How to calculate interest
• Tips to avoid paying interest
• Industry trends
• Common concerns
• How to compare cards with a 0% APR offer

To understand how a 0% APR offer can work for you, read on.

CreditCards.com's Best 0% Intro APR Credit Cards of 2018

These are our favorite credit cards that offer lengthy 0% intro APR offers on either purchases or balance transfers. Many of them also have great rewards, like the Citi ThankYou Preferred Card, which offers a 15 month interest free intro period and 2x points on dining and entertainment.

Research methodology

0% intro APR credit cards analyzed: 1,002

Criteria used: 0% intro APR period for purchases, 0% intro APR period for balance transfers, balance transfer fee, regular APR, other rates and fees, rewards rates, extra benefits and features, customer service, credit needed, ease of application, security

What are 0% APR credit cards and what does 0% intro APR mean?

What are 0% APR credit cards?

A 0% intro APR card is a product that offers no interest for a set amount of time, sometimes up to 18 months or longer. These are great cards for paying off a card balance (or two) without incurring more interest charges. They are also good for consolidating debt into a single payment. These cards can sometimes offer 0% APR on purchases for a limited time.

What does 0% intro APR mean?

A 0% intro APR means that you pay no interest for a set amount of time on balance transfers on credit cards, purchases or both. With balance transfers, you can avoid the debilitating costs of interest fees, which can number in the thousands of dollars over time. For example, if you have a $3,000 balance on a card and you're paying 17% APR, it would take you 126 months to pay the minimum payment each month. That includes the $3,000 plus $2,241 in interest fees. By using a 0% intro APR card, you can avoid the $2,241 charges, provided that you pay off the debt before the offer ends. A 0% intro APR card can sometimes be used for purchases, as well, which is handy if you have a big purchase coming up.

When is it beneficial to have a 0% interest credit card?

• Major purchase. If you have a planned big purchase, a card with a 0% intro APR for purchases can be worth your while.
• Consolidation. Some consumers use a 0% APR card to consolidate debt, placing multiple balances on a single card for one easy payment.
• Card balance. This is the most common use of a 0% interest card. Transfer balances on high-interest cards to a card with a 0% intro APR.
• Non-card debt. You can use the 0% offer for debt other than card balances, although make sure you will pay it off before the go-to interest rate kicks in. A car loan with 3% interest may not be worth your while to transfer, for example, because the interest is already so low and you don't want to risk having the balance on a card with a considerably higher go-to rate.
• Emergencies. Say your car lands in the shop or you're facing an unexpected medical expense. While you don't want to end up with long-term debt and paying the card's go-to rate, if you time it correctly, you can pay for emergencies within the offer's term.
• Rewards. Think about the card after the debt is over. Look at any rewards a card may have that will make the card worth hanging onto after the balance is paid off.

Pros and Cons of the Best 0% APR Credit Cards

Chase Freedom Unlimited®

Pros

With a decent 0% intro APR length of 15 months on both purchases and balance transfers, this card matches its competitors and even surpasses in one respect – its ability to partner with Chase Sapphire cards and benefit from those cards' point boosts on the Chase Ultimate Rewards travel portal. The $150 cash back after a $500 spend in 3 months is also competitive. Also, there are no rotating categories to contend with or required quarterly sign-ups.

Cons

With a high variable go-to rate of 16.49%-25.24% APR, the Freedom Unlimited isn't the best choice for carrying a balance after the intro offers end. You can also do better with 1.5% back on all purchases.

Bottom Line: The Chase Freedom Unlimited's 0% intro APR offer is the right choice for a consumer with a moderate amount of debt. The sign-up bonus and ongoing rewards are competitive, but the go-to rate isn't ideal for someone who plans to carry a balance beyond the end of the 0% offer.

Discover it® Cash Back

Pros

With a fun double your cash back at year end, this card can earn you up to $600 in cash back your first year with its 5% back on select categories. That's $75 back each quarter with a $500 monthly spend and $300 at the end of the year. There's also the Discover Deals program, which gets you access to extra rewards and savings while shopping with your choice of retailers.

Cons

This card's 0% intro APR of 14 months on purchases and balance transfers isn't the most robust – if your primary concern is to pay a sizeable balance off while avoiding interest charges, you may want to look elsewhere. There also isn't a lot in the way of purchase and travel benefits with this card.

Bottom Line: The Discover it Cash Back has one of the lowest variable APRs among 0% cards, with 13.49%-24.49%, which is handy if you think you may carry a balance after the 0% offer ends, although the length of the offer isn't terrifically long. That said, the rewards are strong, even with no sign-up bonus.

Blue Cash Everyday® Card from American Express

Pros

This card has excellent travel and purchase benefits, in addition to a $150 sign-up bonus after a $1,000 spend within 3 months, 3% back for U.S. grocery stores (up to $6,000 a year), as well as 2% back on U.S. gas stations and select U.S. department stores (1% on all other purchases). The 0% APR on purchases and balance transfers is a competitive 15 months (then a variable rate, currently 14.74% to 25.74%).

Cons

The ongoing rewards can be beat by the Blue Cash Preferred (although that card's 0% APR for purchases and balance transfers is for only 12 months). Also, the sign-up bonus' required spend could be lower.

Bottom Line: The tiered cash back isn't the highest, but it's still better than the flat-rate cards on select categories. And while the ongoing rewards are pretty strong, the sign-up bonus' required spend is high.

Capital One® VentureOne® Rewards

Pros

A travel rewards card, the VentureOne Rewards offers 20,000 miles after a $1,000 spend in 3 months and 1.25X miles on all purchases. Also, and this is new, you can earn 10X miles on hotels when you pay with this card. Also, there's no annual fee.

Cons

There is no balance transfer intro APR and the purchase intro APR of 0% is for only 12 months. Also, it doesn't have the rewards of its sister card, the Venture Rewards, although that card carries an annual fee.

Bottom Line: While this may be a good choice for the occasional traveler, it's not an option if you want to save money by avoiding interest charges on balance transfers or if you have a sizeable purchase coming up that you want to spread out over more than a year in payments.

Bank of America® Cash Rewards

Pros

This card competes nicely with the Blue Cash Everyday's tiered rewards, with 2% at grocery stores and wholesale clubs and 3% on gas (up to $2,500 a quarter combined). There's also a $150 sign-up bonus after a $500 spend within 90 days of opening your account. You can also get a 10%-75% customer bonus when you deposit your cash back into a Bank of America account.

Cons

The purchase and balance transfer 0% APR offers are not amazing, at 12 billing cycles.

Bottom Line: This card's required spend for the sign-up bonus is half that of the Blue Cash Everyday, although the Bank of America Cash Rewards has a lower 0% APR offer.

The Amex Everyday® Credit Card from American Express

Pros

One of the biggest advantages to this card is its no balance transfer fee, a rarity right now. Balance transfers have to be requested within 60 days from opening your account. It also offers 0% intro APR for 15 months on balance transfers and purchases.

Cons

The sign-up bonus of 10,000 Membership Rewards points after $1,000 spend within 3 months of card membership could be higher, and the ongoing rewards of 2X points at U.S. supermarkets (up to $6,000 for the year) are not the best.

Bottom Line: The Amex Everyday has a unique feature of earning you 20% more points when you use your card 20 or more times within a billing period. Add that to the no balance transfer fee, which can save you hundreds, and this card is worth a look.

Citi ThankYou® Preferred

Pros

With a competitive 15-month 0% intro offer on both purchases and balance transfers, the Citi ThankYou Preferred reverts to a go-to rate of 15.24%-25.24% APR variable, which starts lower than the national average.

Cons

There's no sign-up bonus, which is unfortunate. Also the balance transfer fee of 3% or $5, whichever is greater, is merely acceptable.

Bottom Line: With no annual fee, no expiration and no limit on the points you can earn (2X points on dining out and entertainment, 1X point on all other purchases), this card has advantages that make it worthwhile. Also, you can redeem points for gift cards to retailers and restaurants.

Chase Freedom®

Pros

With the Chase Freedom, you can earn oodles of cash back with the 5% back on such categories as restaurants, home improvement stores, groceries and more, up to $1,500 in combined purchases each quarter. There's also a $150 sign-up bonus after a $500 spend within 3 months, and of course, you get a 0% intro APR for 15 months on both purchases and balance transfers (then 16.49% - 25.24% variable).

Cons

This card's rotating categories can be a hassle to maneuver, and the required quarterly sign-ups are not fun.

Bottom Line: The Chase Freedom has a quality 0% offer on both purchases and balance transfers, and the sign-up and ongoing rewards are superior. If you like the idea of maximizing your cash back while paying back your balance without interest well into 2019, this is a good card for you.

Capital One® Quicksilver® Card

Pros

If you don't want the pain of required quarterly sign-ups, this card offers a 1.5% back automatic on every purchase, as well as $150 back after a $500 spend within 3 months. There's also the 15-month 0% intro APR on purchases and balance transfers.

Cons

This card doesn't have the high cashback rate of the Chase Freedom, although you don't have to think about what you're purchasing with the Quicksilver.

Bottom Line: With no annual fee and unlimited cash back, this card also doubles as a 0% APR card, which means it can be good for the long haul.

Wells Fargo Platinum Visa®

Pros

With the rare feature of 18 months of 0% intro APR (then 16.90% - 26.74% variable) on both balance transfers and purchases, this card is a standout 0% card.

Cons

There are no ongoing rewards or a sign-up bonus, which makes this card of limited value for the long haul.

Bottom Line: Although there are no rewards, the Platinum Visa is outstanding as a 0% card and you can continue to build credit with it in the long term.

What is a go-to APR?

A go-to APR is the rate you pay once a 0% intro APR ends. The go-to rate can easily be 16% or more, so it's in your best interest to work on paying off the balance before the introductory offer ends. That means paying considerably more than the minimum payment.

However, life sometimes gets in the way of our best intentions. There may be a need for you to carry a balance after the offer ends. In that case, it's a good idea to know what variable rate is offered by the card you are eyeing.

One thing to note – there can be a difference between the APR and the interest rate:

Interest rate – With a credit card, the APR, or annual percentage rate, is the same figure as the interest rate. With other products, such as mortgages, your APR reflects not only the interest rate but also any points, mortgage broker fees and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate, the Consumer Financial Protection Bureau says.

APR – While APRs are designed to reflect the cost of a loan over time, in the case of a credit card, it's used to calculate interest that accumulates daily. You can have different APRs associated with your credit card:

• Standard purchase APR – Sometimes also called the regular rate, this is the APR you are usually charged when you carry a balance.
• Cash APR – When you are granted a cash advance, such as withdrawing cash from an ATM, you are charged a separate, and usually, higher APR.
• Intro purchase APR – This rate, often offered at 0%, is given for a set amount of time, ranging from 6 months to 21 months.
• Intro balance transfer APR – This rate, often offered at 0%, is given for a set amount of time, ranging from 6 months to 21 months.

Prime rate – The U.S. Prime Rate is a commonly used, short-term interest rate in the banking system of the United States. All types of American lending institutions (traditional banks, credit unions, thrifts, etc.) use the U.S. Prime Rate as an index or foundation rate for pricing various short- and medium-term loan products, says FedPrimeRate.com.

Variable APR – An APR range that card issuers offer in which you are issued a rate based in part on your credit rating.

0% Offers with Go-to Rates That Are Below Average

Based on a creditcards.com survey of 100 cards, the average post-introductory-period APR was 19.33%, in December, up from 18.45%. The national average was at 16.75% the week of June 7. Usually, the rates are variable, and depend on the Federal Reserve's rates, as well as your payment habits. Here, we look at 0% intro APR cards with go-to rates starting below that level.

What is the average interest rate on a credit card? What is good?

The national average interest rate is currently 16.41% APR. The average low interest rate is currently 13.14%. Typically, card issuers offer variable interest rates, and the lower rate on the scale is often below the national average. Here are 0% cards with low go-to rates:

What determines the APR on a credit card?

According to a creditcards.com poll on debt, 28% of consumers carry a balance on their credit card, 43% for 2 or more years and 23% for 5 or more years. And each month they carry that debt, the interest charges climb ever higher.

That's because the card issuer has assigned an APR rate to your account, based in part on the Federal Reserve's rates, your payment habits and your credit score. The card issuer's interest for that card also influences your rate. Typically, issuers offer a variable rate and you are assigned a rate within that range.

So if you have been paying on time and you have been keeping your balances low, you have a higher chance of a lower rate.

APR Rates on credit cards

You aren't charged a single rate with a credit card, unlike other types of loans. Here are the 4 primary types of APRs you can face when you use your credit card:

• Purchase APR – This APR is applied when you make a purchase. When you allow the balance to carry over past the grace period, you face interest charges. This is the most common interest rate on a credit card.
• Balance transfer APR – When you transfer a balance to a new card, you can be charged this rate, although there are many cards on the market that don't charge interest for a limited time when you transfer a balance. It is possible for this rate to be greater than the purchase APR, although that's unusual.
• Penalty APR – If you aren't making payments – in other words, you are delinquent – you can face this rate. This rate is quite a bit higher than the other rates.
• Cash advance APR – When you take out a cash advance, such as when you make an ATM withdrawal, you are charged this rate. While not as high as the penalty rate, it is typically higher than purchase or balance transfer APRs. There is no grace period with a cash advance, so count on being charged interest from day one.

Why are credit card rates so high?

Credit card issuers don't just charge high rates because they want to gouge the consumer ‐ they face significant risk when they issue a credit card.

Why? Because they are committing to lending you money, just as when a bank grants you a mortgage or car loan. However, cards differ because they are what is called an unsecured product, while a loan to buy a car or house is secured. That means that with a card, there is no collateral, or an asset the lender can recover if you don't pay them their money back.

Also, unlike a lending product such as some student loans in which the federal government may back the loan, no one is backing the loan you are taking out with a credit card every time you make a charge.

How do you calculate interest on a credit card?

When you carry a balance from month to month, you face an interest rate called the Annual Percentage Rate, or APR. The rate depends on several factors including your credit score and the card's variable rate.

You are charged interest when you carry a balance, once the grace period ends. In some cases, such as when you take out a cash advance, there is no grace period. There are two balances on your card when you have a 0% intro offer: the one with the offer and the one without.

While your APR is expressed in a year, according to Discover, card issuers use that figure to calculate charges over your monthly statement period. The easiest way to calculate the interest you owe is to check out the creditcards.com calculators.

With these calculators you can figure out how long it will take you to pay off a balance with the minimum payment; how to maximize paying off the balance within a specified amount of time or amount each month; or figure out your payoff with a balance transfer calculator.

How Interest Works

If you want to understand the mechanics of how interest is calculated, here's what Discover has to say about calculating the APR on a credit card:

How do you avoid paying interest on a credit card?

The best way to avoid paying interest on a credit card is to pay in full before the due date each month and don't put a charge on your card that you don't already have the money for.

Another way to avoid paying interest is through the use of a 0% intro APR card. With these cards, you have a set amount of time when you can pay off the balance without incurring interest charges. But heads up: You'll need to pay more than the minimum.

If you are trying to get out from under an existing balance with a 0% offer, there are a number of things you can do to make sure you don't make the same mistake again. With the right steps, you can also work toward building your credit and avoid other bad habits. Here are some tips:

What to do when your 0% intro period ends

• Don't transfer to a new card. If you have a balance left over after the 0% intro offer ends, avoid temptation to just transfer the balance again, partly because you aren't solving the problem by doing that, but also because lenders may see what you are doing and deem you a risk.
• Keep the card. Once the debt is paid off, don't close the account. Also, put a small charge on it each month and pay in full to keep the account active. This helps you build your credit. Be sure to pay on time, every time.
• Is there an annual fee? One reason to close the account is if there is an annual fee that isn't counterbalanced by rewards that you'll use. That said, keep in mind that closing the account can harm your credit if you have a card balance elsewhere.
• Keep using the old card. You should still use your old card, putting a small charge on it and paying in full each month. As with the balance transfer card, this helps you continue to build your credit.
• Stick to your budget. There's no point in paying off the balance if you haven't addressed what got you there in the first place. Create a realistic budget with room for fun and savings, so you'll stay true to it.

Are 0% credit cards to blame for rising credit card debt levels?

The average debt per cardholder was $5,644 in the fourth quarter of 2017, up from $5,486 in 2016, according to a TransUnion report released in February. Daunting debt imposes on our ability to plan and dream, and it behooves us to get a handle on it.

You'll sometimes hear someone blame the credit card for their debt, but it's important to instead identify how you got into that debt in the first place. And no, it's not because the 0% intro offer was too short; rather, you may not have budgeted for paying off the balance in time.

Credit cards are great for convenience, rewards and building credit. They're not so great for long-term debt. Have you been using your card correctly?

For example, do you have spending habits that need to be adjusted? Or is there a kind of spending that got you into trouble? A creditcards.com poll from September 2017 found that 32% of those surveyed got into debt through spending on everyday purchases. Here are top reasons why consumers face a balance with their cards:

Our Reasons for Incurring Card Debt

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• Day-to-day expenses - 32%
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• Retail purchases such as clothing, electronics - 16%
• 
  
• Medical bills - 12%
• 
  
• Home repairs - 10%
• 
  
• Vacation expenses - 10%
• 
  
• Car repairs, expenses - 7%
• 
  
• Something else - 7%

Creditcards.com poll

You might also be at risk because of your responsibilities. College, mortgage, big family – these factors can hit a wallet hard when piled on top of each other. The creditcards.com poll found that middle-aged consumers – younger Baby Boomers and Gen X consumers – were more likely to have card debt and carry a balance, while consumers from the Silent Generation and older Boomers were least likely to have card debt.

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• Gen X - 36%
• 
  
• Young Boomers - 33%
• 
  
• Millennials - 26%
• 
  
• Older Boomers - 24%
• 
  
• Silent Gen - 19%

Creditcards.com poll

Do some soul-searching about how you landed in debt before you take out that 0% APR offer. While a 0% intro APR offer can be an excellent tool for paying off a balance without paying interest, these cards are only as good as you make them.

Are 0% credit cards a trap?

Zero interest credit cards are among the best weapons in your financial arsenal when you are trying to pay down debt. But they can beat you down if you don't use them correctly. Here, we look at what happens when they are used incorrectly and the right way to use them.

What can go wrong when you use 0% interest cards incorrectly?

• You fail to pay on time. If you violate the agreement, for example you don't pay on time, you can lose the 0% offer. Always pay on time and don't go over the limit.
• You use the card for new purchases. If you use the card for new purchases outside of a 0% offer for purchases, you will incur new interest charges, basically negating the savings you'd otherwise enjoy.
• You don't pay off the balance in time. If you don't pay off the balance by the time the offer ends, you will incur interest charges for the leftover amount.

What is the right way to use 0% interest cards?

• Budget balance transfer fee. In most cases, there's a balance transfer fee of 3%-5%. Make sure you'll benefit from the balance transfer even with the fee. Some cards, such as the Amex EveryDay, waive this fee within a set amount of time.
• Read the terms. Make sure you are clear about how much time you have to make a purchase or transfer. Also, check the fine print for details about fees and penalties.
• Plan payoff. Figure out how many months it will take you to pay off the debt so that you get the right card with the right terms. Let's say you owe $3,000. With the Amex EveryDay card, for example, you get a 15-month 0% intro APR on purchases and balance transfers, which means you pay $200 a month to pay it off before the offer ends. Contrast that with the Discover it Balance Transfer, with an 18-month 0% offer on balance transfers, which means you only pay $166.67 a month before the offer ends. (Keep in mind that while the Amex EveryDay has no balance transfer fee if you transfer within the first 60 days of card membership, the Discover it Balance Transfer 3% fee means you will pay $90 upfront.)
• Pay off quickly. Pay off as quickly as possible, because your credit score looks at both your individual and combined available credit, so a maxed-out balance transfer card can negatively influence your score.
• Avoid new purchases. Avoid new purchases on the card unless you have a plan to pay it off before the purchase terms end. If there is no purchase intro APR, don't put new charges on the card, because you can end up incurring interest with those charges.
• Use old card correctly. Make sure you put a small charge on the card and pay it off each month to keep the account active. This helps with your credit while you pay off the debt on the new card.

How to compare two cards with a 0% APR offer

Because there are so many factors when choosing a 0% APR card, you need to make sure you are comparing apples with apples. Is there a balance transfer fee? Do the cards offer sign-up balances? What's the 0% APR offer? The answers to these questions will help inform your decision, which we look at below.

Factors to consider about 0% APR cards with no balance transfer fee

• What is the 0% offer's term? There's no point in getting a card with no balance transfer fee if the offer's term isn't long enough for you to be able to pay back the debt before the offer ends. In that case, another card may be worth your while.
• What is the deadline? Often, cards require you to make the transfer within a set amount of time to get the balance transfer fee waived. Make sure it's a deadline you can meet. If you plan to transfer the balance after the offer ends, make sure you budget the balance transfer fee.
• Is there an annual fee? Cards with no balance transfer fee often have no annual fee. If there is an annual fee, that cuts into your savings with the waived balance transfer fee.
• Do you plan to make a large purchase soon? Check if the card with no balance transfer fee has a 0% intro offer for purchases if you plan to use the card to make a major purchase. Otherwise, using the card for new purchases can undercut the savings from having the fee waived.

Factors to consider about 0% cards with sign-up bonuses

• What's the sign-up bonus? Some 0% APR cards offer a sign-up bonus of up to $200.
• What are the ongoing rewards? You can probably find a 0% APR card with rewards of at least 1% cash back.
• Is there an annual fee? An annual fee might be required, but it can be an indication that the rewards are superior.
• Does it have a 0% APR for purchases? Do you need it? Some cards don't have intro APR offers for purchases, so check, if you plan to make a big purchase soon.

Comparing two 0% APR cards with an intro bonus

As you can see, while the Freedom Unlimited is a good use-it-and-forget-it card, the Blue Cash Everyday is ideal for the family that cooks at home. With both offering 0% APR for 15 months on purchases and balance transfers, they provide cover for a little over a year.

Additional Resources

The credit cards listed on this page make up our top selections when it comes to 0% APR on purchases and balance transfers. Our balance transfer and low interest pages are also good resources for your credit card needs.

• Best Balance Transfer Credit Cards – credit cards that specifically excel at balance transfers, starting at 0% intro APR
• Best Low Interest Credit Cards – for a wider range of interest rates, starting at 0% intro APR