How to choose a credit card with 0% APR
Editor's Note
Credit cards with 0% annual percentage rates (APR) provide the advantage of avoiding interest payments on purchases, balance transfers or both for a limited duration.
However, it's important to note that the specific details of each card can vary significantly, as some offer longer introductory periods and additional perks than others. Additionally, charges associated with these cards, such as annual and balance transfer fees, can differ.
Before applying for a 0% introductory APR credit card, consider the following to make an informed decision.
Check the offer type and length
While most 0% APR cards offer zero interest for at least 15 months, certain cards provide 0% introductory APRs that extend up to 21 months.
The length of the offer is significant because it determines the period during which you will be exempt from paying interest. It signifies the duration before your credit card's interest rate resets to the regular APR.
For instance, if you have to make a substantial purchase and need approximately one year to pay it off, any of the 0% introductory APR credit cards with 15-month introductory offers could be suitable. However, if you are dealing with a significant amount of high-interest credit card debt that needs to be paid off, it is advisable to seek out the longest 0% introductory offer available.
Additionally, 0% introductory APR credit cards offer their promotional rates for either purchases, balance transfers or sometimes both. In certain cases, these cards may even provide different timelines for zero interest on purchases and balance transfers.
For instance, you might receive 0% interest on purchases for 12 months while enjoying a 0% introductory APR on balance transfers for a longer period of 18 months.
Lastly, read the fine print to make sure you're not missing anything and that you qualify for the offer you're looking for.
Are there any rewards or perks?
Several credit cards that offer introductory APR periods also provide the benefit of earning rewards. However, it's important to note that opting for rewards usually means sacrificing the length of the zero-interest offer.
Nevertheless, numerous cards offer both introductory APR periods and ongoing rewards, albeit with a shorter duration of 0% interest (typically up to 15 months).
Also, ensure that your card offers perks or benefits that align with your preferences. Common benefits include extended warranties, cellphone insurance, travel insurance, and purchase protection against damage or theft.
What credit score do you need to apply?
While looking into the card details, it's key to consider your eligibility for the desired 0% APR card. The top cards in this category generally require applicants to have a good to excellent credit score, so not everyone will qualify.
Before submitting your application, check your credit score to determine your realistic chance of approval. This step allows you to assess your creditworthiness and decide which cards to pursue.
What kind of fees are included?
Lastly, ensure that any card you're considering has fees you're comfortable paying. Here are some common fees associated with 0% APR cards:
- Annual fees: While most credit cards offering a 0% introductory APR do not charge an annual fee, this may not always be true. Verifying whether an annual fee applies to the card you are considering is essential.
- Balance transfer fees: If you plan to consolidate debt using your new 0% introductory APR credit card, the balance transfer fee becomes significant. While most cards in this category charge a balance transfer fee of 3%, a few cards charge up to 5% instead. Opting for a card with the lowest possible fee will help minimize the cost of transferring a balance.
- Foreign transaction fees: This fee is relevant if you intend to use the card for transactions overseas or with non-U.S. merchants online. If you frequently travel, it is advisable to avoid cards that charge foreign transaction fees. Alternatively, you can consider using another card from your wallet when you are abroad to avoid these additional charges.
By carefully considering and evaluating these fees, you can select a credit card that aligns with your financial preferences and minimizes potential expenses.
Bottom line
Picking a 0% introductory APR credit card may feel overwhelming. By considering factors like required credit scores, associated fees, additional card perks and the offer duration that aligns with your repayment timeline, you can narrow down your options.
It's important to note that, in most cases, multiple 0% introductory APR credit cards can suit your needs. Once you have researched and confirmed that your credit is likely sufficient for approval, applying before the offer expires is key.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.