11 Best 0% APR Credit Cards Of April 2024 – Forbes Advisor – Technologist

A 0% intro APR credit card offers an introductory period without finance charges on purchases, balance transfers or both. Getting a break from interest can be a welcome change from the double-digit interest typically charged on credit cards. The less you’re paying in interest, the more you can put toward paying off your debt.

How Does 0% APR Work?

Introductory 0% APR offers allow new cardholders to finance purchases or balance transfers—sometimes both, depending upon the offer and card agreement terms—without paying interest for a predetermined period of time. After this time, the regular, ongoing interest rate applies to any outstanding balances.

The table below demonstrates the difference in cost for using a credit card to borrow $1,000 for 15 months. Assuming the cardholder makes equal monthly payments each month, the cost of carrying the balance is evident. You can calculate your own interest rates using our credit card payoff calculator.

Note that 0% introductory APRs are significantly different from deferred interest financing, which may charge interest from the date of purchase. Deferred interest financing is often referred to as “special financing.” Carefully read any card agreement before applying for a card.

What Happens When the 0% APR Promotion Ends?

When a 0% introductory APR period ends, the ongoing APR applies to any unpaid balances carried on the card. For this reason, it’s critical that you aim to pay off any balances before the end of the introductory period. If an emergency expense occurs, try to make as much progress as possible in paying down the debt.

How Does Credit Score Affect Interest Rates?

When applying for a credit card, your creditworthiness as determined by the card issuer is a central factor in determining the interest rate offered to you. Your credit score helps lenders determine the risk they’ll take on if they loan you money.  Your score is determined by a scoring model, typically FICO or Vantage, based on the information the credit bureaus provide.

Elements of your credit, like your payment history, credit utilization, the age of accounts and type of credit help determine your credit score. The higher your score, the better your credit and the more likely you’ll be to receive an APR that’s at the lower end of the card’s range.