What Does 0% APR Mean, and How Does It Work?

0% APR allows you to charge purchases and make balance transfers on a new credit card with no interest for a specific time period. Once this introductory period ends, any unpaid balances will assess the regular annual percentage rate (APR). The best 0% APR credit cards offer no-interest financing for up to 18 months.

How 0% APR Works

Some personal and business credit cards offer 0% APR on purchases, and some offer 0% APR on balance transfers. However, the best 0% APR credit cards offer no-interest financing on both purchases and balance transfers for up to 18 months. Cash advances are not eligible for the 0% APR offer.

When you take advantage of a 0% APR offer, you can use your credit card and avoid interest on eligible transactions for a certain period of time, even if you don’t pay your balance in full each month. You should still pay the minimum required payment on or before your due date to avoid a late payment fee.

For credit cards, 0% APR is only temporary. Once the promotional period ends, the regular APR of your credit card will apply to the balance you carry over on the next billing cycle. However, the 0% APR can be terminated before the promotional period if you violate the terms and conditions on your credit card agreement like making late payments. Read our guide on how credit card interest works to learn about potential interest beyond 0% APR.

Types of 0% APR Credit Card Offers

The 0% introductory APR period on new credit cards typically apply to either purchases or balance transfers, or both, depending on your credit card issuer. Cash advances, wherein you withdraw cash using your credit card, are often not included with the introductory 0% APR.

The types of 0% APR most credit cards offer are:

0% purchase APR: Applies to purchases made on your card during the introductory no-interest period. Your card’s regular APR will apply to any purchase balances you carry over from one billing cycle to the next.
0% balance transfer APR: Applies to balance transfers made during the introductory 0% APR period. This means balance transfers from another card won’t be charged with interest during the promotional period. If you fail to pay off the full transfer amount before the introductory period ends, your card’s ongoing APR will apply to those unpaid balances until fully repaid.

If you are planning to make a large purchase or pay off high-interest debt, it’s an excellent option to use a credit card that offers 0% introductory APR. It’s important to know what type of 0% APR a particular credit card offers to maximize its benefits.

When to Use a 0% APR Card

Using a 0% APR credit card lets you save money on interest charges for a specified length of time. This means your credit card issuer allows you to borrow money for free throughout the introductory 0% APR period. It’s best to use an interest-free financing credit card to pay down another high-interest card or to finance large purchases.

Paying Down a High-interest Credit Card

If you are having difficulty paying off your balance on a high-interest credit card, it’s an excellent option to use a credit card that offers an introductory 0% APR for balance transfers. You can use your new 0% balance transfer APR credit card to transfer your balance to help pay down your debt faster—free of interest.

Financing a Larger Purchase

If you are planning to make a large purchase, like new appliances, for instance, you can use a credit card that offers introductory interest-free financing on purchases. This way, you will be able to pay down your large purchase during the promotional period without having to pay any interest. However, remember if you carry over a balance after the promotional period ends, your regular APR will apply to unpaid balances.

Qualifying for a 0% APR Credit Card

To qualify for a 0% APR credit card, you typically need to have excellent credit (700+). However, qualification requirements vary for each credit card. Credit card issuers will often require a hard credit check when you apply. Hard inquiries can impact your credit score negatively by up to five points. It’s best to understand your credit score and know the requirements of different credit cards to make sure you qualify before applying.

Best 0% APR Personal Credit Card Offers

Chase Freedom Unlimited®

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On Chase's Secure Website

Best For: Unlimited cash back and a long 0% APR period

Intro APR	Regular APR	Annual Fee	Credit Needed
0% for 15 months	16.49% to 25.24% Variable	None	Good - Excellent

DOUBLE CASH BACK: EARN 3% CASH BACK On all purchases in your first year up to $20,000 spent. After that, earn 1.5% cash back on all purchases.
NO ANNUAL FEE
NO MINIMUM TO REDEEM FOR CASH BACK and your Cash Back rewards do not expire as long as your account is open.

Note: The information related to the Chase Freedom Unlimited card has been collected by fitsmallbusiness.com and has not been reviewed or provided by the issuer of this card.

Pros

Unlimited, consistent cash back rewards
Interest-free financing on purchases and balance transfers
Charges no annual fee

Cons

No bonus reward categories
Charges foreign transaction fee
Requires good to excellent credit

Purchase protection: Covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
Extended warranty: Extends the time period of the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.

Chase Freedom Unlimited® is one of the best credit cards available that offers a long introductory 0% APR period. This no-interest financing period applies both to purchases and balance transfers. You’ll also never pay an annual fee and be able to earn double the cash back during your first year.

Chase Slate®

Chase Slate® credit card

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On Chase's Secure Website

Best For: No-fee balance transfers

Intro APR ^?0% APR for 15 months on purchases and balance transfers	Regular APR	Annual Fee	Credit Needed
0% for 15 months	16.49%–25.24% Variable	$0	Good - Excellent

Low intro balance transfer offer
Low introductory APR
No annual fee

Note: The information related to the Chase Slate® Credit Card has been collected by Fit Small Business and has not been reviewed or provided by the issuer of this card.

Pros

Long introductory 0% APR period
Low introductory balance transfer offer
No penalty APR

Cons

High balance transfer fee after the introductory period
No sign-up bonus or ongoing rewards program
Balance transfer amount can’t exceed your available credit limit or $15,000, whichever is lower

Free monthly FICO score updates & monitoring: The issuer will update this monthly and monitor the reasons why your score may be up or down
Purchase protection: Covers your purchases for 120 days against theft and damage up to $500 per claim and $50,000 per account per year
No penalty APR: The issuer will not increase your APR if you pay late; this is the same benefit Citi Simplicity offers

Choose the Chase Slate® credit card if your primary concern in a 0% APR credit card is the balance transfer fee. While you’ll have a long introductory interest-free financing period, you’ll also have the opportunity to avoid balance transfer fees on transfers made within 60 days of your account opening.

Citi Simplicity®

Citi Simplicity® Card

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On Citi's Secure Website

Best For: Startups who need a lengthy 0% APR period fund business expenses

Intro APR ^?0% for 12 months on purchases and 21 months for balance transfers	Regular APR	Annual Fee	Credit Needed
0% for 12 months	14.74% - 24.74% Variable	$0	Good - Excellent

0% Intro APR on balance transfers for 21 months from date of first transfer.
0% Intro APR on purchases for 12 months from date of account opening.
No Annual Fee

Pros

One of the longest 0% APR periods available
No annual fee

Cons

No rewards
Doesn’t build business credit

Purchase protection: Citi will repair or reimburse you for items that were damaged or stolen within 90 days of purchase up to $10,000 per incident, $50,000 per year.
Extended warranty: Get additional an 24 months on top of the manufacturer’s warranty, up to $10,000 per claim.

Use Citi Simplicity® if you want to access the longest 0% APR offer for balance transfers. While you’ll have 0% APR on purchases for 12 months, you’ll also have access to 0% APR on balance transfers for a whopping 21 months. This card tops the 0% balance transfer APR category with ease.

Best 0% APR Business Credit Card Offers

U.S. Bank Business Platinum Card

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On US Bank's Secure Website

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Fit Small Business Review

Rating 3.5 3.5

Best For: Extended 0% APR period on purchases and balance transfers

Intro APR ^?0% APR for 20 billing cycles on purchases and balance transfers	Regular APR	Annual Fee	Credit Needed
0%*	9.99% - 17.99% Variable	$0	Excellent

0% Intro APR* on purchases and balance transfers for the first 20 billing cycles. After that variable APR currently 9.99% - 17.99%*
No annual fee*
Free employee cards
Zero fraud liability* protects you against unauthorized transactions

Pros

One of the longest 0% APR period offered
No annual fee

Cons

Comes without rewards

Extended warranty protection: U.S. Bank will double an original manufacturer’s warranty up to an additional one year for warranties of three years or less. Coverage is limited to $10,000 per item.
Purchase protection: U.S. Bank offers purchase protection for items that are damaged or stolen within 90 days of purchase. The coverage is limited to $500 per claim and up to $50,000 per cardholder, per year.

Apply for the U.S. Bank Business Platinum Card if you’re a business owner who wants the best 0% introductory APR offer on the market. You’ll have 20 billing cycles with no interest on purchases and balance transfers. Plus, once the introductory period ends, you’ll benefit from a low ongoing APR.

American Express Blue Business® Cash Card

American Express Blue Business Cash™ Card

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on American Express Blue Business Cash™ Card's secure website.

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Fit Small Business Review

Rating 4 4

Best For: Earning 2% cash back every time you swipe and 0% introductory APR for 12 months

Intro APR ^?0% introductory APR for 12 months on purchases	Regular APR	Annual Fee	Credit Needed
0% on purchases	13.24% - 19.24% Variable	No annual fee	Good, Excellent

Earn up to $300 back to boost your business. You can earn up to $100 in the form of statement credits at each of the following merchants: Dell Technologies, DocuSign or FedEx after you make an eligible purchase on your new Card within the first 3 months of Card Membership.
Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 13.24% - 19.24%, based on your creditworthiness and other factors as determined at the time of account opening.
No Annual Fee
Terms Apply

Pros

No interest for 12 months
Earn consistent 2% cash back rewards on every purchase

Cons

Offers no cash sign-up bonus
2% cash back category is capped at $50,000 in annual spending

Extended warranty protection: American Express provides up to an additional year of coverage on warranties of up to five years. Coverage is limited to $10,000 per occurrence and $50,000 per account each year.
Purchase protection: The issuer will repair, replace, or reimburse you for an item purchased with the card that was damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per occurrence and $50,000 per account each year.
Baggage insurance: If your luggage is damaged or lost when you travel on a common carrier like a plane, trip, ship, or bus, American Express will reimburse you for losses not covered by your own personal insurance.

If you value introductory financing over introductory rewards, you may find happiness with this card. In addition to its long introductory financing period, you’ll also be able to pocket consistent cash back rewards every time you use your card.

The Blue Business® Plus Credit Card from American Express

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on The Blue Business® Plus Credit Card from American Express's secure website.

See Rates and Fees

Fit Small Business Review

Rating 4.5 4.5

Best For: Pocketing 2x points per $1 and 0% introductory APR for 12 months

Intro APR ^?0% introductory APR for 12 months on purchases	Regular APR	Annual Fee	Credit Needed
0% on purchases	13.24% - 19.24% Variable	No annual fee	Good, Excellent

Earn up to $300 back to boost your business. You can earn up to $100 in the form of statement credits at each of the following merchants: Dell Technologies, DocuSign or FedEx after you make an eligible purchase on your new Card within the first 3 months of Card Membership.
Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
Enjoy the flexibility to put more purchases on the Card and earn rewards when you buy above your credit limit*.
You’ve got the power to use your Card beyond its credit limit* with Expanded Buying Power.
More buying power for your business means more opportunities to earn points. That’s everyday business with the Blue Business Plus Card.
*The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 13.24% - 19.24%, based on your creditworthiness and other factors at account opening.
No Annual Fee
Terms Apply

Pros

0% APR for 12 months on purchases and balance transfer
Earn 2x points on all spending

Cons

No lucrative welcome offer
2x points rewards are capped at $50,000 in spending

Extended warranty protection: American Express will match the length of the original manufacturer’s warranty if it’s less than two years. It provides an additional two years if the original manufacturer’s warranty is between two and five years. Coverage is limited to $10,000 per occurrence and $50,000 per account each year.
Purchase protection: The issuer will repair, replace, or reimburse you for an item purchased with the card that was damaged or stolen within 120 days of purchase. Coverage is limited to $1,000 per occurrence and $50,000 per account each year.

Similar to the American Express Blue Business® Cash Card, this American Express business card offers a solid introductory financing period. Outside of the interest-free financing, you can also earn 2x points on every purchase while never paying an annual fee.

Bottom Line

A 0% APR credit card is a good option if you need to make a large purchase or transfer your balance from a high-interest credit card. It’s important to remember that the 0% APR only lasts for a limited period of time. Make sure to understand the credit card’s terms and pay off your balance before the promotional period ends to get the most benefit from a 0% APR offer.

For rates and fees on the American Express Blue Business Cash™ Card, please click here.

For rates and fees on the American Express Blue Business® Plus Card, please click here.

What Does 0% APR Mean, and How Does It Work?

How 0% APR Works

Types of 0% APR Credit Card Offers