0% Intro Rate Credit Cards

Scroll down for an updated list of some of the best zero percent credit cards available today.

Zero percent credit cards are my second favorite type of credit cards behind the rewards credit card, and just before the balance transfer credit card. Of course had you asked me my favorite back when I was getting out of debt, I’d of told you I loved the balance transfer credit card and it was #1. I guess the point is that I love them all, but for different reasons.

A zero percent intro rate credit card is a card that has a promotional interest rate on the initial purchases on the card. For instance, let’s say you have a new card with an intro rate of 0% on purchases for the first 12 months. Now let’s say you have a major purchase coming up and don’t want to finance it with a high interest rate? Or, you might have the cash, but just want to take advantage of the time value of money and pay later for something you could pay for now. Since your money is worth less in the future (inflation and time value), it will cost you less to delay the purchase. As long as you don’t pay any interest or fees to use the card. Confused? Here’s an email from a reader that might clear it up for you:

I just stumbled onto your blog and read about the 0% interest card for balance transfers. Very informative, thanks.

I just got a new credit card (Southwest Rewards) that offers a 0% interest rate on purchases and balance transfers for 6 months. I also have 3 other credit cards that I use regularly depending on what purchases I’m making. I have always paid off my balances each month so I’m not sure if I understand how the 0% card payment really works. This February will be the first month’s billing and I would like to take advantage of the 0% interest rate. I have about $2,000 in charges and the minimum payment is $38, can I pay the minimum and avoid interest on the rest of the balance if I pay the rest of it off before the 6 month expires? Is that the correct interpretation of the terms? I don’t plan to transfer any balances, so that’s not an issue.

Appreciate it if you could tell me whether I’m totally wrong or not. Thanks.

Here is my response to the reader:

Credit card companies usually offer a promotional 0% interest rate on purchases and/or balance transfers.

If the zero percent promotional rate is on “purchases” AND all of that 2,000 is purchases you made with that card, then yes. You can just make the minimums and pay it off before 6 months and never pay interest.

This move isn’t for the lazy, forgetful, or undisciplined though. You have to remember to stay on top of this and not spend the money you need to pay it off elsewhere.

Pour over the card’s terms and conditions just to be sure the 0% applies to your entire balance. It might also be worth calling up the card company and verifying this.

Okay, now check out some of these cards with 0% intro rates on purchases: