Compare the Best 0% Intro APR Credit Cards

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What Are 0% Intro APR Credit Cards?

A 0% intro APR credit card is quite simply a card that offers an introductory interest rate of 0%. This rate applies to purchases, balances transfers, or both. A card with a 0% APR is as popular as balance transfer credit cards. This is especially true when they feature a low APR once the introductory period finishes.

How Do 0% Intro APR Credit Cards Work?

Zero-percent introductory APR credit cards work by allowing the cardholder to carry a balance for a set period. These periods can vary significantly, from three months at the bottom of the range all the way up to a massive 21 months at the top end.

Cards that offer a 0% intro APR period are designed to attract those who want to pay off their existing credit card balances. This process works by combining two (or more) credit card balances into one. The cardholder can then pay down both balances with one payment.

Cards that offer smaller introductory periods are great for those with lower balances. Those with more significant balances – or those who want to finance a substantial purchase – will benefit more from a card that offers a year (or more) of introductory APR.

What Is the Impact of Credit Card Interest Fees?

Interest charges are the fees you pay to credit card companies for carrying a balance on your account. Think of interest as to how the credit card company makes its money. One of the reasons why people love 0% intro APR credit cards so much is because you don’t have to worry about interest charges for a set period. This allows you to avoid interest – and spending extra money.

Once the 0% APR window closes; however, interest payments begin. What is the negative impact of high-interest rates?

• High interest means more significant payments
• Minimum payments are much higher
• It takes longer to repay the credit card debt

Average Credit Card Interest Rates

The cost of your interest payments relates directly to a person’s credit score and the type of credit card they have. Rewards cards, such as cash back credit cards, travel rewards cards, airline cards, hotel cards, gas rewards cards, etc. have higher APRs than credit cards that offer no rewards.

What is the average credit card interest rate? As mentioned, that depends on the type of card. The average APR for a rewards credit card is currently approximately 16.49%, for instance. Cash back rewards cards have an APR almost a full-point lower than that, while airline rewards cards have an APR slightly higher.

Low APR credit cards, such as balance transfer credit cards and credit union cards, typically fall between the 10% and 14% range. Low APR cards have average rates of around 14.39%, while credit unions cards can even dip below 10%.

Better Credit Scores Get Better Rates

The higher your credit score, the better the APR offer you’ll receive. Those with excellent credit scores enjoy interest rates far below what those with fair credit scores can expect.

The average APR for someone with an excellent credit score is currently around 15.8%. In contrast, those with good credit scores get rates slightly lower – 15.7%. The lower your credit score, the higher rates climb. Average credit scores can expect an APR in the mid-20s (24.45%).

What to Look for in a 0% APR Credit Card

Before you apply, do you know what to look for in a 0% introductory APR credit card? Here are a few features on which you should keep an eye:

• Length of Interest-Free Introductory Period: How long is the 0% APR period? Understanding exactly how long your interest-free period runs is vital to getting the right credit card for your needs. If you have a small balance to pay down, a card with six months interest-free is probably enough. The larger your balance, the longer the introductory APR you’ll need.
• What Transactions Apply? Does the introductory period apply to balance transfers? Purchases? Does it apply to both? Before applying for a credit card, make sure you understand what is covered.
• Regular APR: Pay close attention to the interest rate on your credit card offer. Rates usually vary depending on your credit score. Only a few credit cards offer fixed rates, though even fewer of these offer 0% intro APR. Before finishing your application, always study the rates to ensure you can afford to carry a balance once the introductory period ends.
• Annual Fee: Does the card have an annual fee? Most 0% APR cards don’t feature a yearly fee, but some rewards card may – be careful.
• Rewards: Many rewards credit cards come with an introductory APR bonus offer, including 0% introductory APR. These periods encourage new cardholders to spend with the card, earning rewards.

0% Intro APR Credit Card FAQs

Many questions pop up when considering a credit card with no-interest promotional periods. Here are a few of the most asked questions about 0%introductory interest rate credit cards:

What’s the difference between a low-interest (low APR) credit card and a 0% intro APR card?

• Low APR credit cards feature a lower-than-average interest rate every day. Zero-percent APR cards, on the other hand, start at an excellent rate. While 0% is great, the standard variable APR may be several points (or more) above what low-interest credit cards charge.

How long does 0% APR last?

• The length of the introductory interest-free period varies with each card offer and card issuer.  Some credit card companies offer up to 20 months – or more – on 0% intro APR, while others might offer six months, nine months, or more. On average, 0% intro periods last approximately 12 months.

Do all 0-interest credit cards come with no balance transfer fees?

• No. Some credit cards offer no balance transfer fees and no-interest. These types of cards are the perfect balance transfer card as you can pay down existing card balances with no hidden fees. Other cards, however, may charge a fee or only offer no interest on purchases.

Are there any credit cards that have no interest at all?

• Yes. These cards aren’t like traditional credit cards, as they only work at one online retailer. Both the Horizon Gold Card and Group One Platinum Card offer a $500 unsecured line of credit to use at the Horizon Outlet. Neither card has a purchase APR, meaning hey are interest-free.

Should you close a 0% intro APR credit card once the promotional period ends?

• Closing credit card accounts is never a good idea if you can avoid it. When you close down a credit card account, your credit score suffers. The reason behind this is because your average age of credit drops – sometimes by several years. Instead, try one of the following:
  • Keep the account open and don’t spend on the card unless necessary.
  • If the card has an annual fee, try downgrading to a no annual fee version.
  • Use the card as you usually would, but avoid big purchases and make your monthly payment in full to avoid being charged interest. This will also help save money and prevent penalty APR.
• Most credit cards that offer 0% intro APR and have an annual fee are rewards cards. Because of this, they make excellent options for everyday use. Rewards cards earn rewards points at places like grocery stores, airlines, hotels, and other locations.

Other Options to Consider

For those with considerable credit card debts, 0% intro APR cards might not offer enough payment flexibility. The average credit card debt in the United States is currently $8,400. While possible to repay some of that debt during a 0% APR window, unless you receive a 21 months offer, it probably isn’t enough time.

For those struggling to repay more significant debts, non-traditional credit cards, like the Upgrade Card, make the most sense. The Upgrade Card offers the benefits of a traditional credit card and the great rates of a personal bank loan.

Cardholders receive a generous credit limit of up to 20,000, which they can use to pay down balances over a set period of 12. 24, 26, or even 60 months. They also receive lower-than-average rates, with those with excellent credit scores enjoying an APR starting as low as 6.99%.

While the Upgrade Card doesn’t feature an intro APR, the low rates make it perfect for paying down balances without additional headaches. In fact, studies show that using the card vs. a traditional credit card to pay off a $10,000 debt saves over $12,000 in interest! Plus, they can pay off that balance in two years, rather than 28 – just by making their minimum payments.

Find the Best 0% Intro APR Credit Cards

Have a small credit card balance you want to pay down? BestCards has you covered. We have over 800 reviews of credit cards from issuers across the United States.

Browse our reviews, use our custom comparison tool, and take advantage of our extensive credit card resources and advice. Get started and find your best card today!