Do You Need a 0 Interest Credit Card?
4 Min Read | Last updated: January 7, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Zero interest credit cards can help you save money, but make sure you choose wisely. Follow these rules to avoid penalties in the future.
At-A-Glance
- You can save money with a 0 interest credit card, provided that you develop a plan to pay off the balance and stick to it.
- You may face stiff penalties and high interest if you carry a balance past the introductory period.
- Not all cards are the same, so it pays to read the fine print and shop for the best option for you.
Nothing seems to excite consumers more than the number 0—0 calories, 0 emissions, 0 money down. But do you really need (or even want) a 0 interest credit card?
Credit cards with a 0% APR can save you money if you choose a card wisely, develop a plan to pay off your balance and have the discipline to follow your plan. Without those safeguards, you may find yourself facing steep penalties—including paying interest that’s much higher than zero.
0 Interest Credit Cards for a Limited Time Only
All of these cards offer 0 interest only for a limited time. The Credit Card Accountability Responsibility and Disclosure Act of 2009—known as the CARD Act—requires that you have at least six months,1 but card issuers competing for your business may offer twice as long.
After that period expires, interest charges, as defined in your credit card agreement, will apply. Still, if you pay off your credit card balance during the 0 interest window, you are, in effect, borrowing money for free.
For Balance Transfers OR Purchases—Not Both!
Most of these cards are designed for one or both of the following purposes.2
- Purchases. Some issuers apply the 0% APR to new purchases. These cards can be invaluable if you’re planning a major purchase (such as a washing machine, stove, or laptop) or face an unexpected expense (such as a major car repair). Rather than having to come up with the total amount all at once, you can pay for it over time without spending more than if you paid on the spot in cash.
- Balance transfers. Suppose that you have a card with a $2,000 balance. Some portion of your monthly payment goes toward the principal, but the remainder goes to interest. When you transfer that balance to a 0 interest credit card, 100% of your monthly payment goes to the principal, which may help you get out of debt faster.
If you use the card for something other than its primary intent (if you make a purchase with a card intended for balance transfers, for example) you will be charged interest on that transaction.3
Discipline, Discipline, Discipline
Whichever card you choose, you won’t gain the benefit of having a 0 interest credit card without discipline. You’ll want to resist the temptation to buy more than you can afford just because you know you won’t have to pay interest.
You’ll also need the discipline to pay at least your minimum monthly payment on time, and to pay off the full balance during the 0 interest period. You will pay interest on any balance that remains when your interest-free ride ends. Plus, many card agreements permit the issuer to end the 0 interest period early if you make a late payment, miss a payment, or exceed your credit limit.2
Read What’s in the Fine Print
If you’re comfortable with these conditions and want to apply for a 0 interest credit card, keep in mind that they’re not all the same. Here are some things to look for in the fine print.
- What is the annual fee (if any) to keep the card?
- How long is the introductory 0 interest period?
- What is the APR after the introductory 0 interest period?
- What are the fees and rules for balance transfers? Cards may charge a fee (typically 3% to 5%) for moving an existing balance to the new card.2
- Also, some cards limit the time you have in which to transfer a balance (like 60 days), after which the option is gone.2
- Be prepared for the possibility that you can't transfer your full balance from another card.2
Last, know whether you’re applying for a genuine 0 interest credit card or its cousin, the deferred interest card. Both cards charge 0 interest during the introductory period. But with a deferred interest card, if you don’t resolve the full balance before the introductory period ends you’ll owe interest on the full introductory period, not just on the remaining balance.4
Most of this information is readily available in the Schumer box, which is the legally required table-format summary of terms in credit agreements.5
The Takeaway
Not all 0 interest credit cards are created equal. But if you shop for terms you can live with—and stick to a plan to pay off your balance—they can help you save money.
1 “Credit Card Accountability Responsibility and Disclosure Act of 2009,” Federal Trade Commission
2 “How Do Intro 0% APR Credit Cards Work?,” Experian
3 “Can You Make Purchases on a Balance Transfer Credit Card?,” Experian
4 “Are Credit Cards Bad?,” Experian
5 “What Is a Schumer Box?,” Experian
Allan Halcrow is a freelance writer concentrating in business, human resources, and diversity and inclusion. He is also the author of four books on management.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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