Best 0% APR Credit Cards

All information about Citi Simplicity® Card, Wells Fargo Platinum card, The Amex EveryDay® Credit Card from American Express has been collected independently by CreditCards.com and has not been reviewed by the issuer. The Amex EveryDay® Credit Card from American Express is no longer available through CreditCards.com.

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
• How to compare cards with a no interest offer
• What is the impact of paying interest
• Pros and cons of 0% APR cards
• Average interest rates

Best 0% Interest Credit Cards of 2020

Discover it® Cash Back

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

If you have good to excellent credit and are looking for some cash back variety, this no annual fee card could be a perfect fit. 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%), but you can also take advantage of a 0% intro APR of for 14 months on new purchases and balance transfers (11.99% - 22.99% Variable after that). This will come in especially handy if you need to finance a DIY project, as Discover recently added The Home Depot to its Q2 cash back calendar.

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 21 months on balance transfers, after which your APR is a relatively low 13.74% - 23.74% (Variable). Though the card offers no ongoing rewards, it also carries no annual fee.

Wells Fargo Platinum card

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

Thanks to its generous introductory APR offer, the Wells Fargo Platinum card could be ideal if you need some time to chip away at a new or transferred balance. Designed for applicants with good to excellent credit, this card charges no annual fee and comes with a 0% APR for 18 months on purchases and qualifying balance transfers, after which you’ll be assigned an APR of 16.49%-24.49% (Variable). While you’ll have to sacrifice a rewards program, this card’s low-end ongoing APR is impressive, beating out the current national average.

Blue Cash Everyday® Card from American Express

Why it’s the best 0% APR credit cards 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. Along with a 0% intro APR for 15 months on both balance transfers and new purchases (12.99%-23.99% Variable APR after that), 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.

American Express Cash Magnet® Card

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

The Amex Cash Magnet is a great fit for applicants with good to excellent credit who want to reel in interest charges while earning rewards. The card comes with a 0% intro APR on balance transfers and purchases for 15 months, after which a 12.99%-23.99% Variable APR kicks in. The low-end APR comes in well below the national average, and savings-minded cardholders will love this card’s $0 annual fee and unlimited 1.5% cash back rate on every purchase.

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. The card also charges no annual fee and can give you a chance to chip away at an existing balance: You’ll pay 0% interest for the first 18 months on balance transfers, after which the APR is 13.99% - 23.99% (Variable).

Citi Simplicity® Card

Why it’s the best 0% APR credit card for no late fees

Though it lacks a rewards program and comes with few notable perks, the Citi Simplicity Card shines where it counts, offering cardholders with excellent credit a chance to pay down debt while avoiding some fees. You’ll pay no annual fee, no late fees and no penalty APR, all while taking advantage of a 0% intro APR for 21 months on balance transfers, after which the ongoing APR is 14.74%-24.74% (Variable).

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?

A 0% intro APR offer allows you to carry a balance month to month while paying no interest for a set amount of time, up to 21 months. While you sometimes see cards offering 0% interest for 24 months, none are currently available. 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. They are also good for consolidating debt into a single payment. These cards can sometimes offer 0% APR on purchases for a limited time. With balance transfers, you can avoid the debilitating costs of interest fees, which can number in the thousands of dollars over time. Surprisingly, 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 intro APR cards (and racking up transfer charges in the process) and 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.

Comparing two 0% interest card offers

As we mentioned, there are a number of factors to consider when choosing your 0% intro APR card, including rewards, length of the purchase and balance transfer offers, annual fee and balance transfer fee.

Here, we look at the Amex EveryDay®† Card and the American Express Cash Magnet® Card. Both have no annual fee and both offer 0% intro APR on balance transfers and purchases for 15 months. After that, both cards have the same go-to APR of 12.99%-23.99% variable.

For our purposes we average that consumers spent $21,765 on consumer credit cards in 2018, based on our analysis of this 2019 Bureau of Consumer Financial Protection report. The same consumer had an average of $5,294 of card debt. We compare the cards in the first year of card membership; the second year; and the benefits offered.

Compare the 1st year value

Card:	Amex EveryDay†	Amex Cash Magnet
Welcome offer:	10,000 points ($100) after $1,000 spend in first 3 months	$150 statement credit after $1,000 spend in first 3 months
Rewards rate:	2 points per dollar on U.S. supermarket purchases ($6,000 limit on purchases per year, 1% thereafter), 1 point per dollar other purchases	1.5% cash back on every purchase (terms apply)
Spending:	Groceries: $5,005*2 points= 10,010 points ($100) Other qualified purchases: $16,758*1 point= 16,758 points ($168) 20% bonus on qualified purchases: 26,768 points*20%= 5,354 points ($54)	$21,765*1.5%= $326
Cost of balance transfer ($5,294 balance):	$0 when made within the first 60 days	$159
Annual Fee:	$0	$0
1st year value:	$422	$317

Compare the 2nd year value

Card:	Amex EveryDay†	Amex Cash Magnet
Spending:	Groceries: $5,005*2 points= 10,010 points ($100) Other qualified purchases: $16,758*1 point= 16,758 points ($168) 20% bonus on qualified purchases: 26,768 points*20%= 5,354 points ($54)	$21,765*1.5%= $326
Annual Fee:	$0	$0
2nd year value:	$322	$326

Compare the card benefits

Card:	Amex EveryDay†	Amex Cash Magnet
Card benefits:	Free access to credit score Purchase protection Car rental loss and damage insurance Exclusive access to ticket presales & and cardmember-only events Global assist hotline	Free access to credit score Purchase protection Complimentary ShopRunner membership Car rental insurance Car purchasing program Pay it Plan it program

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, anywhere from 14%-27%. 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. Check out our handy-dandy calculators to crunch the numbers yourself and see how you can minimize your interest charges.

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.

Pros and cons of 0% intro APR credit cards

Having a credit card with a no interest offer not only helps you save money. It can be good for consolidation, non-card debt, emergencies, and sometimes, rewards. But there are, as with everything, downsides as well.

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

The national average APR has been hovering between 16% and 17%, and the average rate among low interest credit cards is currently under 14%. 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.

Laura Mohammad is an editor and writer at CreditCards.com. She regularly covers the best credit cards and works to bring you the most up-to-date analysis and advice. You can reach Laura at laura.mohammad@creditcards.com.