• APR vs. interest rate

  APR and interest rates are effectively the same thing when it comes to credit cards. The APR (annual percentage rate) refers to how much your card charges in interest when you carry a balance from month to month. One credit card may have several different APRs, including:

  • Purchase APR
  • Balance transfer APR
  • Introductory APRs
  • Cash advance APR
  • Penalty APR

• How does credit card interest work?

  When you use your credit card, you’re borrowing money from the bank that you are liable to pay back. If you pay back all the money you owe — your balance — before your bill is due, you won’t have to pay any interest.

  If you make at least the minimum payment but still owe money after your bill is due, you’ll owe interest on the new balance. Plus, you’ll likely forfeit your grace period, meaning your card will start charging interest on any new purchases as soon as you make them.

• What does 0% APR mean?

  A 0% intro APR credit card lets you carry a balance on the card for a period of time, usually between six to 21 months, without accumulating interest. The 0% APR can apply to purchases, balance transfers, or both. Just be aware that you may lose the card’s intro 0% APR period if you make late payments.

  0% intro APR for purchases

  A card offering a 0% intro APR on new purchases waives interest payments for a certain period of time on new charges to your account. This is helpful when you need time to pay off a big-ticket item or project like a home remodel or car repair. Once the intro period expires, you’ll pay the card’s regular APR on any remaining balance.

  0% intro APR for balance transfers

  A balance transfer card gives you a break from interest charges while you pay off debt transferred from another credit card. You’ll pay down debt faster, since the entire payment goes toward the principal of your debt, rather than the principal plus interest. You may have to pay a balance transfer fee — cards with no balance transfer fees are rare — but that fee may be worth it if you save more in interest than it costs to make the transfer.

  When a card advertises 0% interest, make sure that it’s a true 0% intro offer and not a deferred interest offer. A true 0% introductory offer charges interest only on the outstanding balance once the introductory period is over. With a deferred interest offer, if you don’t pay off every cent of your balance by the end of the introductory period, you will have to pay the full amount of interest that was waived during that introductory period. All of the cards in our list above are true 0% APR credit cards.

• How to avoid interest on credit cards

  Most credit cards offer a grace period, or time between when they send you a credit card statement with your balance and when your payment is actually due. If you regularly pay off your balance in full and before the due date, you’ll avoid paying interest altogether.

  Even if you’re not able to pay off your balance every month, it’s important to make your payments on time. You’ll avoid paying a higher interest rate called a penalty APR that some cards charge when you miss a payment.

If you pay off your balance within the introductory period, you could save well over $1,000 in interest payments with one of our no-interest credit card recommendations. But you could easily double those savings by choosing a 0% APR card with a valuable sign-up bonus and ongoing rewards program. The cards with the best sign-up bonuses and rewards, like the Chase Freedom Flex℠, might have shorter no-interest periods, but the cash back rewards make these cards much more valuable.

Let’s say you make a $6,000 purchase and can afford a $300 monthly payment. You’d save over $1,000 in interest payments with each of these cards:

1. Make sure you can qualify for a 0% APR card

You’ll typically need good or excellent credit to qualify for a 0% APR credit card. If your credit score is poor or fair, consider applying for one of the best cards for fair credit or the best credit cards for bad credit. Unfortunately, if your credit score is too low, you may not qualify for a 0% APR offer.

FICO and VantageScore are the two major credit scoring systems that measure your creditworthiness — how responsible you are as a borrower. Financial institutions like banks and credit card issuers look at your credit score to determine whether they will offer you a loan, credit card or even a mortgage.

Don’t know your credit score? Sign up for LendingTree Spring to get your free credit score.

2. Search for cards with longer introductory offers

You’ll generally want to find a card with a longer intro period to make your payments more manageable. However, the intro period isn’t everything — there is a tradeoff when it comes to other card benefits. A card’s rewards, including the sign-up bonus, can add substantially to your savings with the card. You may get a better overall value by choosing a rewards card with a shorter APR term than a longer one with no rewards.

3. Factor in the value of the sign-up bonus (if you can earn it)

Many credit cards with 0% APR offers also offer sign-up bonuses worth hundreds of dollars that can help pay off your purchase, so it may make sense to seek out cards that offer bonuses. While most cards with no annual fee offer either no sign-up bonus or a sign-up bonus in the range of $150 to $200, some cards do offer higher welcome bonuses.

4. Find rewards that match your spending patterns

While some cards offer a flat rewards rate on all purchases, other credit cards offer bonus rewards in certain spending categories. Match up the type of purchase(s) you’ll be financing with cards that offer bonus rewards on those purchases to help you earn extra rewards. You should also consider bonus categories that match your regular spending categories if you intend to keep the card after the intro offer expires.

Popular bonus categories include: Groceries, restaurants and gas

Once you’ve decided to apply for a 0% APR credit card, you can follow these simple steps:

1. Decide on the best card for your situation: Strike a balance between a long intro 0% APR, rewards and other card benefits.
2. Gather the required information to apply: Have your name, address, income and employment information on hand.
3. Prepare for a credit impact: Each time you apply for a credit card, a hard inquiry will typically appear on your credit report and lower your credit score by a few points.
4. Check for preapprovals: A preapproved credit card can boost your chances of being approved.
5. Choose how you’re going to apply: Your options include online, in person at the bank, over the phone or by mail.

Check out our list of seven steps to apply for a credit card for more tips.

Who is a 0% APR credit card best for?

You should only get a 0% APR card if…

• You have a payment plan in place and are disciplined enough to follow it. You won’t come out ahead if you get a 0% APR card and then don’t pay it down before the intro rate ends.
• You need to pay down a large purchase or consolidate debt from a high-interest card. It can give you extra breathing room to pay off the purchases at a slower pace without incurring interest.
• You can afford to make more than the minimum monthly payments. Getting a 0% APR credit card and only paying the minimum could land you in debt for years. In fact, a recent LendingTree study on minimum payments found that it would take 11 years to pay down a $2,000 balance by only making the minimum payment.

If you’re looking for 0% interest credit cards from a particular company, take a look at our top picks from each major issuer. You’ll notice that some of our picks, like the Citi Custom Cash^® Card, Bank of America^® Travel Rewards credit card and Wells Fargo Active Cash^® Card, differ from those listed above. The cards listed below offer better savings but have shorter interest-free periods. If you can afford to pay off your card sooner, we highly recommend giving up the longer APR period and choosing one of the cards below. You can earn valuable sign-up bonuses and ongoing rewards during the introductory period and for years to come.

• Choose a rewards card with a shorter 0% intro APR period. This is especially true if you can afford to pay off your balance sooner. However, even if you take a few months past the card’s intro period to pay off your balance, you might find that the rewards surpass the incremental savings you would get from a no-frills card with a longer intro period. You’ll notice that credit cards that offer rewards — like the Capital One SavorOne Cash Rewards Credit Card — have some of the highest ratings on this list. That’s because the rewards programs on these cards potentially offer greater savings over a no-frills 0% APR card. If you are a disciplined card user, you can even use the rewards earned on these cards to help pay down your balance.
• Make your payments on time. If you send in a late payment or miss one altogether, you may forfeit your introductory APR. Plus, some cards charge late fees and penalty APRs. Stay on top of your credit card bill and make your payment on time to avoid fees.
• Pay off your card before the introductory period is over if at all possible. This will help you avoid paying interest on your purchase or balance transfer.