How does a 0% APR credit card work?

A 0% APR credit card doesn't charge interest on purchases for an introductory period. If you carry a balance from purchases during that time, you won't incur any interest charges. You are required to make minimum payments, because if you don't, the card issuer may cancel the zero-interest offer. The length of the 0% APR period depends on the credit card. Once the offer ends, the card's standard APR will apply to the current balance and new charges.

What should I look for in a 0% APR credit card?

The most important feature in a 0% APR credit card is the length of the zero-interest offer. If possible, you want an introductory period that's long enough to pay off any purchases you plan to make. Let's say you plan to use a 0% credit card for $3,000 of home repairs, and you'll be able to pay $200 per month towards that debt. To avoid interest charges, you'd need a 0% intro APR for at least 15 months. It could also be worth picking a card with a longer introductory period just in case.

Which credit card offers the longest 0% APR period?

The credit card with the longest 0% APR period on purchases is the U.S. Bank Visa® Platinum Card. Its zero interest offer lasts for 20 billing cycles and applies to both purchases and balance transfers.

Best 0% APR Credit Cards (February 2021 Update): 0% APRs Until 2022

A 0% APR credit card is one that offers an introductory period when interest isn’t charged on purchases. Once the interest-free introductory period ends, the regular APR rate is applied to new purchases and any remaining balance. This type of card can be a great way to finance a big expense, and you'll find all the best 0% interest credit cards here.

The Ascent's picks for the best 0% APR credit cards:

Bonus cash back: Discover it® Cash Back
Purchases and balance transfers: Citi® Diamond Preferred® Card
Cash back versatility with a big bonus: Chase Freedom Flex℠
Unlimited cash back: Chase Freedom Unlimited®
0% intro APR and welcome bonus: Blue Cash Everyday® Card from American Express
Purchases and balance transfers: Bank of America® Cash Rewards credit card
Purchases and balance transfers: U.S. Bank Visa® Platinum Card
Unlimited cash back: Capital One® Quicksilver® Cash Rewards Credit Card
Long balance transfer offer: Citi Simplicity® Card - No Late Fees Ever
Restaurants and groceries: Capital One® SavorOne® Cash Rewards Credit Card
0% intro APR for purchases and balance transfers: HSBC Gold Mastercard®

Ratings Methodology

If you have any costly purchases coming up that you can't pay for in full, a 0% APR credit card could be the solution. You can stretch your payments out over the card's introductory period, and you'll avoid paying interest as long as you pay off your balance before it ends. But you do need to understand how 0% interest credit cards work first to avoid making any costly mistakes.

What is a 0% APR credit card?

A 0% APR credit card has an introductory offer of zero interest on purchases. During the card's introductory period, you can carry a balance on your purchases from month to month without incurring any interest charges.

The length of the intro period varies by card. Some zero interest credit cards offer a 0% APR of six months or less, but there are also 0% APR credit cards offering 18 months or longer without interest.

Assuming you can pay off your full balance within the intro period, you won't pay any interest. This can save you hundreds or thousands of dollars compared to what standard credit card interest rates would cost you.

How do 0% APR credit cards work?

On 0% APR credit cards, the APR on purchases is set to 0% for a limited period of time. That means you don't need to pay off your full credit card balance every month to avoid interest, as you would with other credit cards.

As an example, imagine you get a card with a 0% APR on purchases for 15 months. You use it to buy a new computer for $1,500. All you need to do is make the minimum payment every month. If you also pay at least $100 per month towards that purchase, then you'll pay it off interest free.

There are situations where you can be charged interest, even with no interest credit cards:

You don't make your minimum payment. You're still required to make minimum payments on time. If you don't, the card issuer could cancel the 0% APR offer.
You use your credit card for other types of transactions. The 0% intro APR applies to purchases, not balance transfers or cash advances. Look for a balance transfer credit card if you need a 0% intro APR on those.

What happens when the 0% APR ends?

At the end of its zero-interest period, the credit card will change to its standard APR. The card issuer can then start charging you interest on your remaining balance and any new purchases you make. That's why it's highly recommended that you pay off your entire balance before the end of the 0% APR offer.

How does credit card interest work?

Credit card interest is the fee you pay when you borrow money using your credit card. Every billing cycle, the card issuer will apply your card's APR to any transactions eligible for interest charges.

APR stands for annual percentage rate, and on credit cards, it serves as the interest rate. Many credit cards charge a different APR for each type of transaction (purchases, balance transfers, and cash advances).

Not all transactions incur interest. Credit cards typically have an interest-free grace period between the date your statement is sent to you and its due date. If you pay off the full statement balance, you won't be charged interest on your purchases. And of course, you also won't be charged interest if your card has a zero interest offer in effect.

What is a good APR for a credit card?

A good APR for a credit card is one that's below 16.61%. That was the average APR on credit card accounts that assessed interest (excluding cards on 0% APR introductory offers) in the first quarter of 2020.

Although an APR below 16.61% is good by credit card standards, it's high compared to other financial products. Personal loans, for example, have a much lower average interest rate, making them a better choice for borrowing money.

Credit cards usually aren't a good choice if you want to carry a balance from month to month. The main exceptions are 0% credit cards, at least during their zero interest offers, and low interest credit cards.

Credit cards with the longest 0% APR periods

U.S. Bank Visa® Platinum Card: 0% intro APR on purchases (and balance transfers) for 20 billing cycles
Wells Fargo Platinum card: 0% intro APR on purchases (and balance transfers) for 18 months
HSBC Gold Mastercard^® credit card: 0% intro APR on purchases (and balance transfers) for 18 months

What's a billing cycle?

A billing cycle is the amount of time between credit card statements, and it's usually anywhere from 28 to 31 days. Legally, your credit card's payment due date must stay the same every month. Since some months are longer than others, billing cycles aren't always the same number of days.

Zero percent interest credit cards may have introductory offers that last for either a set number of billing cycles or months. To compare these cards, it's easiest to look at one billing cycle as equal to one month. Each will last a similar length of time, and there's no way to know in advance if one of the two will end up being longer than the other.

Alternatives to consider

Depending on your financial needs, a 0% APR credit card may not be the right choice. Here are the top alternatives to a zero-interest credit card.

Balance transfer credit card: If you have credit card debt to refinance, then a balance transfer card is the way to go. A balance transfer is when you move existing credit card balances onto a new card. The top balance transfer cards have 0% intro APRs on any balances you transfer over.

Compare our picks: Check out The Ascent's best balance transfer credit cards

Personal loan: With a personal loan, you'll have a fixed payment amount and loan term, which gives you more structure than a credit card. Personal loans are also better when you will take two years or longer to pay off a purchase, because they have lower interest rates than credit cards. But if you are confident you can pay off a purchase within the intro period of a 0% credit card, then the card would save you money.

Compare our picks: Check out The Ascent's best personal loans

Debt consolidation loan: You can get a debt consolidation loan for any type of debt. It's more versatile than a balance transfer card, which you can typically only use for credit card debt. Debt consolidation loans are also a good choice when you need more time to pay off your debt than the intro period a balance transfer card gives you.

Compare our picks: Check out The Ascent's best debt consolidation loans

Best 0% APR credit cards compared

The best 0% APR credit card is the U.S. Bank Visa® Platinum Card. It has the longest introductory period, so if you need as much time as possible to pay off purchases, it's the card to choose.

There are quite a few impressive interest free credit cards available. Here are the best 0% APR credit cards and how they compare:

The Picks
Card	Rating	Great For
Discover it® Cash Back	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Bonus cash back
Citi® Diamond Preferred® Card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Purchases and balance transfers
Chase Freedom Flex℠	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Cash back versatility with a big bonus
Chase Freedom Unlimited®	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Unlimited cash back
Blue Cash Everyday® Card from American Express	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: 0% intro APR and welcome bonus
Bank of America® Cash Rewards credit card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Purchases and balance transfers
U.S. Bank Visa® Platinum Card	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Purchases and balance transfers
Capital One® Quicksilver® Cash Rewards Credit Card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Unlimited cash back
Citi Simplicity® Card - No Late Fees Ever	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Long balance transfer offer
Capital One® SavorOne® Cash Rewards Credit Card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Restaurants and groceries
HSBC Gold Mastercard®	Rating image, 4.0 out of 5 stars. 4.0 stars	Great For: 0% intro APR for purchases and balance transfers

FAQs

A 0% APR credit card doesn't charge interest on purchases for an introductory period. If you carry a balance from purchases during that time, you won't incur any interest charges. You are required to make minimum payments, because if you don't, the card issuer may cancel the zero-interest offer.
The length of the 0% APR period depends on the credit card. Once the offer ends, the card's standard APR will apply to the current balance and new charges.
The most important feature in a 0% APR credit card is the length of the zero-interest offer. If possible, you want an introductory period that's long enough to pay off any purchases you plan to make.
Let's say you plan to use a 0% credit card for $3,000 of home repairs, and you'll be able to pay $200 per month towards that debt. To avoid interest charges, you'd need a 0% intro APR for at least 15 months. It could also be worth picking a card with a longer introductory period just in case.
The credit card with the longest 0% APR period on purchases is the U.S. Bank Visa® Platinum Card. Its zero interest offer lasts for 20 billing cycles and applies to both purchases and balance transfers.

Best 0% APR Credit Cards of February 2021