Zero Percent Credit Cards are cards that don’t have fees. They are great for paying off your balances without worrying about interest charges.

What is a zero percent credit card?

A zero percent credit card offers zero percent interest on your purchases for an introductory period, usually up to 21 months. These cards are great for paying off your balances without worrying about interest charges. These cards can sometimes offer 0% APR on purchases for a limited time.

How do zero percent credit cards work?

Apply for a zero percent credit card and use the card to make interest-free purchases or zero percent balance transfers. In this, no interest will be charged from the card user during the introductory period. The cardholder  has to pay back the cost of the purchases or the balance transfer amount. The cardholder needs to pay out the monthly balance to enjoy interest free terms and to stop account into default.

The revert rate

The interest-free terms do not last forever. The interest will jack up to 25-30% at the end of the introductory period.

Order of repayments

Some times lenders force cardholders to repay that interest free promotion but this is not a normal practice. Typically, a card promotion with highest interest rate needs to be paid first, but if there are multiple interest-free promotions active on your account, you have to make the payment for the promotion that is about to expire first.

Benefits of Zero Interest Credit cards

Zero percent credit cards are a lender’s way of attracting new customers. These cards offer interest free purchases, 0% balance transfer deals, or both. Just ensure that you pay off your debts before the end of the introductory period, or else, the interest rate will go up to a much higher rate.

  • No annual fee – Zero interest credit cards are best as you don’t need to pay any annual fee for these cards. However, there are some card lenders that charge annual fee.
  • No interest for a set window–  If you’ve a zero percent credit card, you’ll pay zero percent interest on the purchases you’ve made through it during the introductory period. Most of the credit cards offer introductory period for 6-21 months on purchases, and sometimes on balance transfers, too.
  • Allows you to buy expensive things at 0% interest– If you want to buy something expensive like a television or flight tickets etc. and need some time to pay it off, a 0% credit card is the best option for you. This card allows you to space out repayments with no interest charges.
  • Helpful for lowering high-interest balances– If you are carrying a heavy debt on any high-interest credit card, you can transfer that debt to your 0% credit card. This gives you sufficient time to clear your debt without paying interest.

Best Zero Interest (0% APR) Credit Cards

  • The Amex EveryDay® Credit Card from American Express – 12 months
  • HSBC Gold Mastercard® Credit Card – 18 months
  • Discover it® Cashback Match™ – 14 months
  • Bank of America® Cash Rewards Credit Card – 12 billing cycles
  • Wells Fargo Platinum Visa® Card – 18 months
  • Citi Simplicity® Card – 21 months

What to look for when you apply for zero percent credit card?

  • Choose a card that serves you best. There are some cards that offer zero percent rate for a year while others extend it to 15-21 months.
  • Choose a card that offers 0% interest on both shopping and transfers.
  • Make sure to know about the interest rate you’ll face after the completion of teaser period
  • Many cards jack up the interest rate to approx. 25% – 30%, if you delay just one payment.

Try and find a card that offers rewards on travel, business, hotels, airlines and more.

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