Best 0% APR Credit Cards

Comparing zero interest credit card offers

During these turbulent times, credit card debt is something that can be a cause for worry. With the current uncertainty about the economy, you may be inclined to practice an overabundance of caution with your finances. However, you need to be smart when planning out those finances.

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 temporarily halting the interest charges that come with carrying a balance. 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. Here, we look at:

• Best 0% interest credit cards
• Summary of 0% interest credit card offers
• Methodology
• Intro to 0% APR credit cards
• What to look for in 0% interest card offers
• What is the impact of paying interest
• How to avoid overspending online during the holidays
• Average interest rates
• Frequently asked questions

Best 0% Interest Credit Cards of 2020

Citi® Diamond Preferred® Card

Why it’s the best 0% APR credit card for balance transfer

If paying off debt is your top priority and you have the excellent credit needed to qualify, the Citi Diamond Preferred Card could be a lifesaver. The card comes with an extremely long introductory APR offer: 0% for 18 months on balance transfers, after which your APR is a relatively low 14.74%-24.74% (variable). The fees are minimal with this card, including no annual fee. The balance transfer fee is either $5 or 3% of the amount of each transfer, whichever is greater. Unfortunately, there are no rewards, points or miles to be earned for everyday spending.

Discover it® Cash Back

Why it’s the best 0% APR credit card for rotating category rewards

Not only will you earn 5% cash back on the first $1,500 you spend in rotating bonus categories each quarter (upon activation, then 1%), you can match your cash back at the end of your first year. The Q4 categories include Amazon.com, Walmart.com and Target.com, just in time for holiday shopping. Also, take advantage of a 0% intro APR for 14 months on new purchases and balance transfers (11.99%-22.99% variable after that). Finally, fees are minimal, including no annual fee.

Citi® Double Cash Card

Why it’s the best 0% APR credit card for cash back

One of our favorite flat-rate cash back cards, the Citi Double Cash Card is ideal for rewards-savvy applicants with excellent credit. You’ll earn up to 2% cash back on every purchase – 1% back when you buy, plus 1% back as you pay off those purchases. Also, you’ll pay 0% interest for the first 18 months on balance transfers, after which the APR is 13.99%-23.99% (variable), although no such luck with 0% intro APR on purchases.

Chase Freedom Unlimited®

Why it’s the best 0% APR credit card for sign-up bonus

The sign-up bonus on this card has dramatically improved in recent months to $200 after a super-low $500 spend within the first 3 months. Needless to say, the spend is one of the lowest around for what you get. Earn 5% cash back on grocery store purchases (not including Target® or Walmart®) on up to $12,000 spent in the first year. That beats the spend maximum of Blue Cash Preferred, and the Chase Freedom Unlimited has no annual fee. While there’s no 0% intro APR offer on balance transfers, you can get 0% intro APR for 15 months on purchases, then it’s 14.99%-23.74% variable.

Chase Freedom Flex℠

Why it’s the best 0% APR credit card for earning rewards with no annual fee

New cardholders will enjoy 0% intro APR on purchases for the first 15 months (then it’s 14.99%-23.74% variable). This is a fairly average length for a 0% introductory APR period but combined with the lack of an annual fee, it’s a solid offer. When it comes to rewards, the Chase Freedom Flex casts a wide net. Rewards categories include travel purchased through Chase Ultimate Rewards®, restaurants and eligible delivery services, drugstore purchases, and quarterly-rotating bonus categories (activation required).

Citi Rewards+℠

Why it’s the best 0% APR credit card for everyday purchases

With the Citi Rewards+ Card, you can earn 2X points at supermarkets and gas stations (up to $6,000 a year in combined purchases, then 1X point). There’s also no annual fee. And, this card’s 0% intro APR offers are excellent for a rewards card. Get 0% intro APR on purchases and balance transfers for 15 months, then it’s 13.49%-23.49% variable. Also, this card allows you to round up to the nearest 10 points on every purchase, and there’s no cap.

Capital One® Quicksilver® Cash Rewards Credit Card

Why it’s the best 0% APR credit card for no annual fee

This no annual fee card has a longish 0% intro APR on purchases of 15 months, which means you pay off purchases without paying interest throughout 2021; it’s 15.49%-25.49% variable after that. However, there’s no 0% intro APR on balance transfers. Earn $200 after a $500 spend within the first 3 months, and earn 1.5% cash back on all purchases.

Blue Cash Everyday® Card from American Express

Why it’s the best 0% APR credit card for good credit

Good to excellent credit is required to qualify, but if you make the cut, this no annual fee card should offer terrific long-term value. That means you’ll need a FICO Score of at least 670 out of a range of 300-850 to even be considered for this card. You’ll enjoy an impressive cash back rewards program: Get 3% cash back at U.S. supermarkets (on up to $6,000 in purchases per year, then 1%), 2% back at U.S. gas stations and select U.S. department stores and 1% back on all other purchases. There’s a 0% intro APR on purchases (15 months, then 13.99%-23.99% variable), although not so on balance transfers.

Discover it® chrome

Why it’s the best 0% APR credit card for gas spending

You can earn 2% cash back at gas stations and restaurants for up to $1,000 each quarter, earning you up to $20 a quarter or $80 for the year. Then it’s 1% cash back. Although there’s no sign-up bonus with this card, you can match your cash back at the end of your first year. So, that $80 becomes $160 at the end of your first year. Also, the 0% intro APR is 14 months on purchases and balance transfers, which becomes a low 11.99%-22.99% variable after that.

Capital One® SavorOne® Cash Rewards Credit Card

Why it’s the best 0% APR credit card for food and dining purchases

Just wow. The SavorOne offers 3% cash back on dining and entertainment, as well as 2% cash back at grocery stores. It’s 1% cash back on everything else. This no annual fee card’s sign-up bonus is more than competitive: Earn $200 after a $500 spend within the first 3 months. There’s a 0% intro APR offer on purchases for 15 months (then it’s 15.49%-25.49% variable), but not so with balance transfers.

American Express Cash Magnet® Card

Why it’s the best 0% APR credit card for low interest

The low-end APR comes in well below the national average, starting at 13.99% and going to 23.99% (variable). Savings-minded cardholders will love this card’s $0 annual fee and unlimited 1.5% cash back rate on every purchase. The card comes with a 0% intro APR on purchases for 15 months, after which the 13.99%-23.99% variable APR kicks in, however there’s no 0% intro APR offer on balance transfers.

Blue Cash Preferred® Card from American Express

Why it’s the best 0% APR credit card for welcome offer

The Blue Cash Preferred’s welcome offer is one of the best among cash back cards – for a limited time, earn $300 after a $3,000 spend within the first 6 months (offer ends 12/10/20). Also, earn 6% cash back at U.S. supermarkets (up to $6,000 a year, then 1%), as well as 6% on select U.S. streaming services. If you’re looking to get 0% intro APR on new purchases, this card has a 12-month offer (then it’s 13.99%-23.99% variable). Also, earn 3% cash back at U.S. gas stations and on all manner of transit. It’s 1% on other purchases. However, there’s no 0% intro APR on balance transfers.

Summary of 0% intro APR Credit Card Offers

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

How do 0% APR credit cards work?

Zero percent intro APR offers typically range from 6-18 months. After this introductory period, the regular APR kicks in, which is typically a variable rate within a specific range.

These are great cards for paying off a card balance (or two) without incurring more interest charges. These are also great for consolidating debt into a single payment, as they sometimes offer 0% APR on purchases for a limited time. Plus, you’ll have options – according to our January 2020 survey, there were 38 cards offering 0% intro APR deals on balance transfers. Surprisingly enough, two-thirds of consumers we polled said they had never applied for a credit card to pay 0% on a new purchase.

Just keep in mind that you’ll want to be sure you’ve paid down your balance before your intro APR period runs out so that you can avoid interest charges. Be sure to watch out for potential pitfalls like using multiple 0% intro APR cards (and racking up transfer charges in the process), as well as adding new debt to your card. This way, you’ll be in a good place when your introductory APR period ends.

Have you ever applied for a credit card to pay 0% on a new purchase?…

• Yes, and I got the 0% APR card
• 26%
• Yes, but I wasn’t approved
• 7%
• No, I’ve never applied for a 0% card
• 45%
• No, I didn’t know 0% APR cards existed
• 23%

CreditCards.com November 2018 0%/BT survey

What to look for in a credit card with no interest

Unlike other types of loans, credit cards have several APRs, which we look at here.

• Regular 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.
• 0% intro APR on purchases – If you make purchases while your card has a 0% intro APR offer on purchases, you will not pay interest, provided you follow the issuer’s rules. Once the offer ends, if a balance remains, the go-to rate kicks in.
• 0% intro APR on BT – When you transfer a balance to a new card, if there is a 0% intro APR offer, you will not pay interest during the offer period, provided you don’t violate any rules. If there is a balance after the offer ends, the go-to rate kicks in.
• Go-to APR – A go-to APR, typically the regular APR, is the rate you pay once a 0% intro APR period ends.
• 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. Some cards, such as the Discover cards, don’t have a penalty APR.
• 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.

Other factors to consider

• Balance transfer fee – Most cards that allow balance transfers charge a fee, which is usually 3%. A few cards waive this fee, which can save you hundreds of dollars, depending on your balance.
• Rewards – When you are looking for rewards in a 0% credit card, there’s usually a tradeoff – if there are rewards, the 0% offer is typically lower than a card that exclusively offers 0% on balance transfers and/or purchases. Rewards can come in sign-up bonuses, ongoing rewards or both.
• Annual fee – Most cards with a 0% intro offer have no annual fee, although there are a few that do, so check before committing.

What is the impact of credit card interest fees?

Yes, credit card interest fees raise your debt, but they can also make it difficult to pay down that debt if you are paying the minimum each month. Here, we look at how they can cost you money, how your credit score impacts them and more.

How your credit score impacts your ongoing interest rate

The regular interest rate on your credit card is based primarily on your credit score, which in turn is informed by the amount you owe compared to your available credit as well as your on-time payments. The higher your score, the lower your risk to the bank, and therefore the lower the interest rate you will likely get.

How higher interest rates can cost you money

You know now that paying down your debt is optimal, but high interest rates can increase the total amount you pay in interest and delay your payoff timeline. Most credit cards have a variable rate. The rate you are given by the card issuer depends in part on your creditworthiness.

• Say you owe $5,000 and you are assigned a 14% interest rate. If you pay down $300 each month, it will take you 19 months and you will pay $592.79 in interest.
• Now, take that same $5,000 but with 27% interest. If you pay the same $300 each month, it will take you 22 months and it will cost you $1,337.32 in interest.
• As you’ve probably figured out, the sooner you pay the debt, the less in interest you’ll pay. But the interest rate is another huge factor, as you’ve seen. Use CreditCard’s.com’s payoff calculator to find out how much you are paying in interest.

Use Creditcard’s.com’s payoff calculator to find out how much you are paying in interest.

Strategies to avoid paying credit card interest

Take advantage of your grace period

Your credit card grace period is a period of time in which you can charge purchases to your card and hold off on paying without being charged interest. You can save hundreds each year when you take advantage of your grace period, but you’ll need to pay in full before the deadline each month to qualify.

Pay in full each month

You may know that you should pay in full each month to avoid interest charges, but here’s a tip – consider paying the balance off multiple times a month. Why? Because it will help keep your credit utilization ratio low, thereby helping your credit score.

Manage your credit card weekly

We run the risk of overcharging on credit cards because we don’t “see” the transaction – in other words, money doesn’t leave our hands. By managing your credit card on a weekly cadence, you are less likely to go over your budget because you can correct yourself sooner.

Pay more than the minimum

If you simply can’t pay down the balance, at least don’t pay only the minimum. The more you pay each month, the faster you’ll pay down the debt, but also you’ll pay less in interest.

Ask for a lower rate

One little-known way to lower your interest is to simply ask for a lower rate. If you are assigned a higher rate on the card’s range, don’t be shy about asking for a lower rate. We found that 56% of consumers who asked were granted a lower interest rate.

Watch out for deferred interest

Sometimes you’ll see the opportunity to pay over time at, say, a furniture store or a jewelry store and defer interest. Be careful, because that means you are accruing interest from the beginning, and you may have to pay that interest if you don’t pay the balance before the offer ends. By comparison, 0% intro offers on credit cards don’t charge interest during the offer period, although interest does kick on any remaining balance once the offer ends.

How to avoid overspending online during the holidays

Don’t plan to rove the aisles this holiday season out of concern about COVID-19? You’re not alone. Our August 2020 holiday shopping study found that more than two out of three (71%) holiday shoppers plan to do most of their seasonal shopping online this year, up from just over half (51%) last year.
You can make the most out of shopping online this holiday season by being selective in how you spend. A 0% intro APR card can help you to stay under budget, if you use it smartly.

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

The national average APR has been about 16%, and the average rate among low interest credit cards is currently under 13%. Usually, your credit cards’ interest rates are variable and depend on the Federal Reserve’s rates as well as your payment habits. In the case of 0% APR cards, the lower rate on the scale is sometimes below the national average. As a rule of thumb, anything below the national average APR can be considered a good APR on a credit card.

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 can I avoid interest on a credit card?

One way to avoid paying interest on a credit card is with a 0% intro APR offer, either for a balance transfer or for purchases. But there’s a more straightforward way.

When you pay in full and on time each month, you avoid paying interest altogether. By doing this, you also avoid the balance transfer fee most balance transfer cards charge, which is usually 3%-5% or $5-$10, whichever is greater. And there’s another advantage to paying in full and on time.

By paying in full and on time, you are benefiting your credit score tremendously. In fact, those two actions make up 65% of your FICO score, the dominant scoring model in the U.S.

That’s not to say you can’t build your credit while using a 0% intro APR offer, though. When you open a new card account, the available credit will help your overall credit rating, so the sooner you pay down the debt (thereby increasing the available credit), the better.

What does 0% APR mean?

Zero interest APR on a credit card means that any balance carried in an account will not face any interest charges for a set amount of time. Normally with a credit card, you’re charged interest on any balance you carry from billing cycle to billing cycle.

For a limited-time 0% intro APR offer, you’ll have to meet certain criteria, such as at least making minimum payments, paying on time and not going over your credit limit, but doing so will allow you to make purchases or consolidate debt for a balance transfer without having to worry about interest.

You can save hundreds of dollars in interest charges with a 0% intro APR card. However, with 0% APR cards, these rates are often high, so tackling that existing balance before time runs out is a must. Be sure to make substantial payments before the offer expires; a large balance can be unexpectedly costly even with a moderate APR.

Why use a 0% intro APR credit card?

The regular APR on a credit card can be exorbitant, so paying a balance off while avoiding interest can save you hundreds, even thousands of dollars. You can be tempted by the minimum monthly payments credit cards offer, while a 0% intro APR can discipline you to pay off the debt in a set amount of time.

There are a number of reasons why you might want to use a 0% intro APR credit card:

• Pay off a balance transfer
• Pay off a large purchase or series of purchases, such as a home renovation
• Consolidate accounts for convenience
• Pay off non-card balances, such as loans for furniture purchases