How to choose a 0% APR credit card

Credit cards with 0 percent introductory annual percentage rate (APR) offers let you avoid paying interest on purchases, balance transfers or both for a limited time. However, individual card details vary quite a bit, with some offering longer introductory periods and more perks than others. Fees can vary too, including annual fees and balance transfer fees.

Here are some of the top features you should consider before applying for a 0 percent intro APR credit card:

Figure out what credit score you need

Before starting your search for the best zero-interest credit cards, you’ll need to know your credit score, as well as the credit score you need to get approved for the card you want. The best cards in this category typically require good to excellent credit, so not everyone will qualify. Before you apply, check your credit score to ensure you stand a chance at being approved.

Determine the type of offer you need

Zero-percent intro APR credit cards extend their offers to purchases, balance transfers or both. Sometimes, cards extend zero interest to purchases and balance transfers on different timelines. Knowing how to use the intro APR can help you narrow your options.

For example, the Citi® Diamond Preferred® Card offers a 0 percent intro APR on purchases for 12 months and on balance transfers for 21 months (provided that the balance transfers are completed within four months from account opening). Both are subject to an 18.24 percent to 28.99 percent variable APR thereafter.

Balance transfer offer

If you want to accelerate your credit card debt payoff by consolidating it with a balance transfer credit card, you’ll want to consider cards with attractive balance transfer offers. This might mean finding 0 percent APR credit cards with low or no balance transfer fees to save money, as well as lengthy intro periods that allow you ample time to pay off the balance.

Purchase offer

Are you planning on a large purchase soon? Finding the right purchase offer could help you avoid paying interest while paying the balance. Focus on the card’s introductory purchase APR, standard purchase APR and how long the intro period lasts. You won’t have to worry about a balance transfer fee, but you’ll want to pay attention to details like the card’s foreign transaction fee if you’re purchasing an item from another country. Either way, be sure to learn what type of offer the card is advertising so you can plan accordingly.

Consider the length of the offer

One of the most important details is the length of each card’s 0 percent intro APR period. Where most credit cards in this niche extend zero interest for at least 12 months, some cards offer 0 percent intro APRs for up to 21 months.

The length of the offer matters because it’s how long you’ll avoid interest. How long an intro APR offer lasts may not matter much to you if you want to pay off your balance relatively quickly. However, if you have a lot of high-interest debt to consolidate or a major purchase to make, longer offers give you more time to make progress.

If you have a smaller purchase and need no more than a year to pay it off, 0 percent intro APR credit cards with 12-month intro offers could work. If, on the other hand, you have thousands in high-interest credit card debt you need to pay off, look for the longest 0 percent intro offer you can find.

The offer length can also help you determine an appropriate monthly payment to reach your goal before your credit card interest rate resets to the variable APR. And brace yourself: the average card interest rate is just under 21 percent, yet many 0 percent intro APR cards charge much higher rates than that.

Take note of any offer limitations

Read your card’s fine print to learn about the limitations associated with each card offer. Some cards will entirely rescind their 0 percent intro APR offers if you miss a single payment or don’t abide by their other rules.

For example, the Wells Fargo Reflect® Card comes with a 0 percent intro APR for 21 months from account opening on purchases and qualifying balance transfers, followed by an 18.24 percent, 24.74 percent or 29.99 percent variable APR. However, like all cards, there are limitations involved. Your balance transfers must be made within 120 days to qualify for the intro rate, and a balance transfer fee of 5 percent or a minimum of $5 will apply to each balance transfer.

Understand the credit card’s fees

Specific fees may change your opinion on whether a card will be right for you. Some of the most common types of fees associated with 0 percent APR cards include:

• Annual fees. This is the fee you pay yearly to carry the card. Many credit cards with a 0 percent intro APR don’t charge an annual fee, but this isn’t always true.
• Balance transfer fees. As mentioned, this fee is charged whenever you complete a balance transfer. Most cards in this niche charge a balance transfer fee of 3 percent, but some charge 5 percent instead. By choosing a card with the lowest fee, you’ll minimize the costs of transferring a balance.
• Foreign transaction fees. This fee is charged whenever you make a purchase where a currency conversion is involved. You might run into this fee if you plan to use the card overseas or with non-U.S.-based companies online. If you travel frequently, try to avoid cards that charge foreign transaction fees (or simply pull out another card in your wallet abroad).
• Late fees: If you make your payment even one day after the due date, your credit card could be charged a late fee. Depending on your card issuer, a late payment could also trigger a penalty APR.

Look for credit card rewards

Many credit cards with intro APR offers earn rewards, although you’ll typically sacrifice the length of your zero-interest offer for this perk.

An example of a popular cash back credit card with an intro APR offer is the Chase Freedom Flex®*. The Freedom Flex offers a variety of cash back categories, including 5 percent on activated rotating bonus category purchases each quarter (up to $1,500 in purchases, then 1 percent), along with 0 percent intro APRs on purchases and balance transfers for 15 months. After that introductory period ends, you’ll pay a 20.49 percent to 29.24 percent variable APR. A 3 percent intro balance transfer fee with a minimum of $5 applies for transfers made in the first 60 days.

Another popular card is the Wells Fargo Active Cash® Card. This flat-rate cash rewards credit card offers 2 percent cash rewards on all qualifying purchases. Regarding an introductory APR offer, you’ll get a 0 percent intro APR on purchases and qualifying balance transfers (those made in the first 120 days) for 15 months, followed by a 20.24 percent, 25.24 percent or 29.99 percent variable APR.

Earning rewards while enjoying a 0 percent intro APR on purchases can be excellent as long as you plan to pay off your balances before the introductory APR offer ends and your rate reverts to the variable APR.

Consider additional cardholder perks

Make sure any credit cards you’re considering offer perks you want or could use. Pick a credit card with perks you can use in the long run — or at least one with no annual fee — so you won’t have to weigh the pros and cons of keeping the account open each year. These are some of the most common credit card perks:

Having these perks on top of earning rewards can make your intro 0 percent APR credit card useful even after the promo APR expires and you’ve paid off your balance.

Where to find the best zero interest credit cards

There are a few ways to find the best zero-interest credit cards, whether you’re looking for a balance transfer or a purchase offer.

Start by checking your mailbox. Credit card issuers often seek out well-qualified borrowers for their credit cards, and many of them send out mail offers. While some offers are the same as what you would get by applying online or in person, some personalized offers are exclusively available by mail. You could also check with the banks and credit unions you already have relationships with.

Not to toot our own horn, but Bankrate’s CardMatch tool is another way to find the best 0 percent APR credit cards. By answering a few questions, you’ll have personalized offers within seconds for the 0 percent APR credit cards that best fit your credit profile. You can also check our updated list of the best 0 percent interest credit cards if you want more options.

The bottom line

Choosing the right 0 percent APR credit card for your next balance transfer or major purchase depends on multiple factors. Your credit score, budget, offer length, perks and the type of rewards you want will all influence that decision. Considering these factors, you can find the offer that best suits your lifestyle and payoff timeline while ditching the regret of missing out on a better credit card offer.

*Information about the Chase Freedom Flex® has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.