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Best 0% APR Credit Cards Of August 2024
Updated: Aug 8, 2024, 9:10am
Credit cards are known for charging higher interest rates than other loan products from banks. But with promotional 0% APR periods, some cards let you avoid interest payments on purchases, balance transfers or both. We’ve reviewed the best 0% APR credit cards of August to help you decide which one is right for you. When comparing 0% APR cards, be aware some lack other features such as rewards and additional perks, and may not offer as much value after the introductory period ends.
Best 0% APR Credit Cards
- Citi Custom Cash® Card: Best Intro APR Card for Automatic Earning Maximization
- Citi Rewards+® Card: Best Intro APR Card for Earning Citi ThankYou Points
- Capital One VentureOne Rewards Credit Card: Best Intro APR Card for Earning Flexible Rewards
- Chase Freedom Flex®: Best Intro APR Card With Rotating Categories
- Discover it® Cash Back: Best Intro APR Card for Cashback Match
- Bank of America® Customized Cash Rewards credit card: Best Intro APR Card for Choosing Bonus Categories
- U.S. Bank Cash+® Visa Signature® Card: Best Intro APR Card for Cash Back on Travel
- Wells Fargo Active Cash® Card: Best Intro APR Card for Flat-Rate Rewards
- Chase Freedom Unlimited®: Best Intro APR Card for Flexible Rewards
- Capital One SavorOne Cash Rewards Credit Card: Best Entertainment Rewards Credit Card With Intro APR
Summary of the Best 0% APR Credit Cards
Methodology
Not all 0% APR cards are created equal. To generate our list of top picks, Forbes Advisor regularly reviews dozens of credit cards with 0% intro APR offers across a broad spectrum of issuers. Factors considered include:
- Intro 0% APR periods
- Fees
- Earning rewards
- Rewards redemption options
- Transfer partners
- Other ongoing card benefits
Forbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case. Sometimes, cards with average stand-alone ratings may still rank highly on a particular list according to how a person looking for a card in that category may value certain card features.
For instance, a card that might be considered average overall could be the top card on a list of 0% APR rewards cards with no annual fee. That’s because the card might offer limited features compared to other rewards cards, but once accounting for its specific use scenario, it’s the best card that remains.
When evaluating rewards potential, Forbes Advisor uses data from multiple government agencies to determine how much a typical cardholder might spend and therefore earn from designated bonus categories.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates credit cards.
Complete Guide to 0% APR and Low Interest Credit Cards
- What Does 0% APR Mean?
- APR Glossary
- How Does 0% APR Work?
- 0% APR vs. Low Interest Credit Cards
- Pros and Cons of 0% APR Credit Cards
- How Much Could You Save With a 0% Intro APR Offer?
- How To Pick a 0% APR or Zero Interest Credit Card
- How Do You Qualify for a 0% APR Offer?
- How To Make the Most of Your 0% Interest Credit Card
- Who Should Get a 0% APR Credit Card?
- Frequently Asked Questions (FAQs)
What Does 0% APR Mean?
A 0% introductory APR offer means cardholders don’t pay interest on eligible transactions for a specified period of time. Any remaining balance at the end of the promotional period will accrue interest at the regular APR.
Introductory APR offers may apply to purchases, transferred balances or both. Many cards offer periods greater than one year, with some cards extending 0% introductory APRs beyond 18 months. Balance transfer fees often apply to 0% introductory APR-eligible balance transfer transactions, although they may be reduced during the introductory period. Minimum payments are still required during any 0% introductory APR period.
APR Glossary
Annual percentage rates can be challenging to understand in part because there are so many types of APRs.
What Is a Purchase APR?
What Is a Balance Transfer APR?
What Is an Intro APR?
What Is a Variable APR?
What Is an Ongoing APR?
Read more. Average Credit Card Interest Rates
How Does 0% APR Work?
Introductory 0% APR offers allow new cardholders to finance purchases or balance transfers—sometimes both, depending upon the offer and card agreement terms—without paying interest for a predetermined period of time. After this time, the regular, ongoing interest rate applies to any outstanding balances.
The table below demonstrates the difference in cost for using a credit card to borrow $1,000 for 15 months. Assuming the cardholder makes equal monthly payments each month, the cost of carrying the balance is evident. You can calculate your own interest rates using our credit card payoff calculator.
Interest Rate | Total Principal Paid | Total Interest Paid | Monthly Payment | Total Cost |
---|---|---|---|---|
22.99% | $1,000 | $152.03 | $81 | $1,152.03 |
19.99% | $1,000 | $136.31 | $77 | $1,136.31 |
0% for 15 Months | $1,000 | $0 | $66.67 | $1,000 |
Note that 0% introductory APRs are different from deferred interest financing, which may simply postpone when you need to pay interest on your charges. Deferred interest financing is often referred to as special financing. Carefully read any card agreement before applying for a card.
What Happens When the 0% APR Promotion Ends?
How Does Credit Score Affect Interest Rates?
0% APR vs. Low Interest Credit Cards
- Low interest credit cards offer cardholders a lower than usual regular APR. These cards can be an ideal option for cardholders who periodically need to carry a balance. Credit unions often offer low interest credit cards. .
- A 0% introductory APR offer is a limited-time opportunity to pay off your balance while avoiding interest charges completely for a set period of time. These cards rarely have low, ongoing interest rates and since the higher rates apply immediately to any remaining balance at the close of the period, they can be dangerous for those who aren’t careful.
Are 0% APR or cash-back credit cards better?
Pros and Cons of 0% APR Credit Cards
Before you apply for a card with an introductory 0% APR promotion, it’s important to understand both the advantages and disadvantages of using one. Here’s what to keep in mind.
Pros of 0% APR Credit Cards | Cons of 0% APR Credit Cards |
---|---|
Save on interest. Regardless of how long the promotion lasts, you can save money on interest charges. Maximize those savings by paying off the balance in full before the promotion ends. | Offers may be revoked. If you miss a payment or pay less than the minimum amount due, your credit card issuer may revoke the 0% APR promotion and interest may start accruing on your balance immediately. |
Lower your monthly payment. With no interest charges, your minimum monthly payment will be lower. Make it a priority to pay more than the minimum, however, to avoid having a large balance once the card’s regular APR kicks in. | Zero interest may backfire. Having no interest and a minimum monthly payment can make it easy to slack off on your debt payoff plan. But if you don’t pay your balance in full by the end of the promotional period, you may end up with some high-interest debt. |
Pay down debt faster. Without interest, every cent you pay goes directly to the balance, allowing you to reduce your debt in less time. | Balance transfers may require fees. If you get a 0% APR credit card for the balance transfer offer, you can expect to pay an upfront fee of 3% to 5% of the transfer amount which will be added to your balance and eat into your savings. Some credit union credit cards offer balance transfers with no balance transfer fees, but their 0% intro APRs are often for shorter terms. |
How Much Could You Save With a 0% Intro APR Offer?
Your potential savings will depend on a number of factors including your balance, the length of your promotion, potential fees and whether you pay off the debt before the promotion ends.
To give you an idea of how much you can save, let’s say you want to make a $5,000 purchase and can pay it off in 15 months. If you have a current credit card with a 20% APR, your monthly payment would be $379.50 and you’d pay $692.35 in interest.
But, if you applied for a 0% APR credit card with a 15-month promotional period, your monthly payment would be $333.33, and you’d pay no interest at all, saving you nearly $700.
How To Pick a 0% APR or Zero Interest Credit Card
- Look for the longest 0% APR offer available. More importantly, make sure that the offer you’re considering is long enough for you to pay off all or most of your debt without any interest.
- Evaluate the fees. You’ll likely pay a balance transfer fee of 3% to 5%. If you plan to pay off your balance in a couple of months, crunch the numbers to confirm that the interest you’d save would outweigh your upfront fee.
- Consider which perks you want. Ask yourself if you’re interested in any other credit card perks, such as a free FICO Score on your monthly statement, cellphone insurance or extended warranty coverage.
- Consider your spending style. If your goal is earning rewards on your purchases while avoiding interest, consider the type of purchases you plan to make. Some cards offer more rewards in specific bonus categories, so you should choose a card that will give you the most bang for your buck.
- Look at the ongoing variable APR. While balance transfer credit cards can help you temporarily save on interest, you’re going to be stuck with the card’s regular APR for future purchases.
How Do You Qualify for a 0% APR Offer?
Cards with 0% introductory APR offers typically require good or excellent credit. If lenders are going to forego the opportunity to charge you interest on carried balances for a period of time, they want to ensure you’re capable of making regular, on-time minimum payments and are unlikely to default on the balance. So the better your income and credit score, the more likely you’ll receive approval for a card with a 0% introductory APR.
Check your credit before applying for any credit card to catch any mistakes or unexpected negative marks. If your credit is lower, it’s a good idea to take steps to improve your credit before applying for new cards.
How To Make the Most of Your 0% Interest Credit Card
Whether you use a 0% APR credit card for a large purchase, emergency expenses or a balance transfer, here are some tips to help you maximize your savings:
- Create a payment plan. If you’re making one big purchase or transferring a balance, figure out how much you’ll have to pay each month to eliminate the debt before the promotion ends. Then, make it a priority to stick to that plan. If you’re planning to use the promotion for multiple purchases, evaluate your situation each month to determine how much to pay to avoid carrying over any debt.
- Set up automatic payments. The last thing you want is to lose your promotion. To avoid the possibility of missing a payment, set up autopay on your account. It may also be a good idea to maintain a buffer in your checking accounts in case the payment overdraws your balance.
- Read the fine print. For the most part, 0% APR terms are standard, but make sure you read the fine print for a card before you apply. For example, if a card only offers a 0% APR on balance transfers, you may not get a grace period on any new purchases you make.
- Take steps to improve your financial management. Depending on your reasons for using a 0% APR, evaluate your financial situation and determine how you can manage debt and expenses in the future. You may consider building an emergency fund, limiting spending to avoid carrying a balance or saving up for larger purchases.
Who Should Get a 0% APR Credit Card?
You might consider getting a 0% APR credit card if any of the following situations apply:
- You have good or excellent credit.
- You’re making a large purchase and need time to pay it off.
- You want to consolidate high-interest credit card debt.
- You have some emergency expenses and don’t want to deal with hefty interest charges.
- You’re motivated to pay off your balance before the promotional period expires.
- You’re able to pay your credit card bills on time.
One last factor to determine if you should get a 0% intro APR card: You’ll still need to make and stick to a plan to pay off your card plan before the promotional period ends. If the idea of zero interest encourages you to overspend, it might be best to hold off on paying by credit card entirely.
Forbes Advisor Personal Finance Writer Jenn Underwood contributed to this article.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Find the Best Low Interest Credit Cards Of 2024
Frequently Asked Questions (FAQs)
What Is a 0% Intro APR Credit Card?
A 0% intro APR credit card offers an introductory period without finance charges on purchases, balance transfers or both. Getting a break from interest can be a welcome change from the double-digit interest typically charged on credit cards. The less you’re paying in interest, the more you can put toward paying off your debt.
What is the best credit card with no interest?
There’s no one best credit card offering a 0% introductory rate. Your particular circumstances will determine the right card for you. You should consider whether you need 0% intro APR on a balance transfer, purchases or both. Then consider the promo offer, the regular APR, any fees, as well as any rewards or benefits the card may offer.
What is the longest 0% period I can get on a credit card?
Offers are updated frequently, with 0% APR frequently being offered for 12 to 15 months. Some of the best offers extend to 21 months before interest begins to accrue.
The Wells Fargo Reflect® Card currently offers one of the longest 0% introductory APRs on the market with its 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. A 18.24%, 24.74%, or 29.99% variable APR applies thereafter. Balance transfers made within 120 days qualify for the intro APR and a balance transfer fee of 5%, min $5 applies.
How much will my credit card payment be with 0% APR?
Your monthly payment will be determined by your balance and the card issuer’s method of calculating minimum payments. For example, the required payment may be a flat percentage of your balance or a percentage of your balance plus any new fees and interest. To ensure that you pay off the balance before the promotional period expires, consider paying more than the minimum payment amount.
How can I qualify for a low interest credit card?
As a general rule, the better your credit score is, the lower the interest rate a lender will grant you. If you want to qualify for a lower interest rate on your credit card, one of the best things you can do is work to improve your credit score. Doing things like making on-time payments, keeping your credit utilization low and not applying for too much new credit at the same time are all things that can help you have a higher credit score.
Credit unions often offer the lowest rate credit cards. If you have a banking relationship established at a credit union, you may be more likely to be approved, even with a lower credit score.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.