Credit cards are notorious for charging exceptionally high interest rates. However, some credit cards offer no interest for a set number of months or billing cycles. These interest-free periods can apply to purchases, balance transfers or both.
While the best intro APR credit cards don’t have the same level of benefits or rewards as other top credit cards, what you save in interest can be worth it. If a 0% intro APR card is appealing to you, here’s when it makes the most sense to apply.
When you need to finance a large purchase or have high-interest debt
By itself, an intro APR offer doesn’t save you money; it saves you money in comparison to other financing options. With a 0% APR for 12, 18 or 21 months, you could pay hundreds of dollars less in interest compared to getting a personal loan with a 10% APR or carrying a credit card balance with a 22% APR.
Let’s take a look at an example using the Wells Fargo Reflect® Card’s introductory APR offer, which is a 0% intro APR for 21 months on balance transfers completed in the first 120 days from account opening and purchases (followed by a variable APR of 17.49%, 23.99% or 28.24%). A balance transfer fee of 5% ($5 minimum) applies.
Here’s how much interest you’d save using the Wells Fargo Reflect to finance a $10,000 purchase over 21 months compared with taking out a personal loan. This example assumes a 22% credit card APR (with a 3% minimum payment) and a 10% loan APR.
Loan vs. credit card cost comparison
| Balance | APR | Total interest paid with 21-month payoff | Total interest paid after 21 months at minimum payment | |
|---|---|---|---|---|
| Personal loan | $10,000 | 10% | $942 | $942 |
| Credit card | $10,000 | 22% | $2,139 | $3,432* |
| *$7,816 remaining balance |
These savings exceed the value you’d receive from most of the best credit card welcome bonuses.
The cost of the personal loan is limited because the minimum payments are calculated to pay it off by the end of the loan term (in this case, 21 months). With a credit card, you could pay it off in 21 months — but if you only make minimum payments, the interest you’d pay skyrockets, as you’re paying off the principal more slowly.
When you can qualify for the best offers
A credit card with a 0% APR offer can be the cheapest way to finance purchases and a great option for consolidating debt. However, taking advantage of an intro APR often requires a reliable income and a good-to-excellent credit score, or a FICO Score of 670 and higher.
If your credit score is too low, you are unlikely to get approved for the card. And if your income and credit aren’t strong enough, you may not receive a high enough credit limit to cover the purchases or balances you want to transfer.
For example, two of the top cards with intro APRs are the U.S. Bank Shield™ Visa®Card and the Citi® Diamond Preferred® Card. And both require good-to-excellent credit.
This means intro APR cards aren’t a viable option for emergencies or for making ends meet if you lose your job; when you run into financial challenges, your approval odds are likely to plummet.
When you have a plan to pay off the balance
A 0% interest card can save you bundles of cash, but your savings can be wiped out quickly if you carry a balance beyond the intro APR’s expiration date. Most of these cards have standard credit card APRs that vary from the mid-teens to nearly 30% based on your credit.
Paying your card balance off before an 18+ month intro APR ends may not be difficult if you have a stable income and strong credit, but you’ll need to plan to pay more than the minimum each month. And, in certain situations, you may want to proceed with caution.
For example, the BankAmericard® Credit Card for Students offers an excellent intro APR, making it a tempting option for paying off college expenses. However, it’s not a long-term solution. Once the standard APR kicks in, you’ll be stuck with a much higher rate compared to student loans, auto loans or nearly any other type of financing.
Subscribe to the CNBC Select Newsletter!
Money matters —so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select’s in-depth coverage ofcredit cards,bankingandmoney, and follow us onTikTok,Facebook,InstagramandXto stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Chinese 
English (United States)