If you’ve recently lost your job or have been unemployed for some time and are struggling to pay your essential bills, a zero-interest credit card can provide a short-term, low-cost alternative. With a credit card that offers a promotional APR of zero percent for the first twelve months, you may buy a fridge or an engagement ring and pay it off in installments without incurring any interest charges.
You can get cash back or travel incentives on the things you buy with some 0% interest credit cards, while others provide an initial 0% APR for a lengthy term. But with multiple choices, how do you know which card to pick? Please choose the best card from our list of cards that don’t charge interest.
Blue Cash Everyday Card from American Express
The Blue Cash Everyday Card has no annual fee and offers a 0% initial APR on purchases and balance transfers for 15 months. Cardholders can also get 3% cash back as a statement credit at U.S. supermarkets (up to $6,000 yearly, then 1%), U.S. online retail (up to $6,000 yearly, then 1%), and U.S. petrol stations.
The service is ideal for those who spend a large portion of their income at U.S. grocery stores, internet retailers, and gas stations but who would benefit from avoiding hefty interest rates on purchases for the time being.
Get a $100 statement credit after spending $2,000 in the first six months and another 20% back when you pay with PayPal at participating retailers (up to $150 back) for a total possible incentive of up to $200.
In the United States, many families spend a sizeable percentage of their monthly income on groceries, internet shopping, and transportation. Because of the increased bonus cash back in those areas with the Blue Cash Everyday card, it will quickly become one of your most used credit cards.
In addition to its bonus categories, this card offers a 0% initial APR on purchases and balance transfers for the first 15 months, making it a good option for those currently stretching their budget to the limit. If you don’t pay off your balance in full by the end of the initial term, the annual percentage rate (APR) will increase from 17.74% to 28.74%. (This APR is variable, as are most credit card APRs because they are pegged to the prime rate, which rises and falls with it.)
The Blue Cash Everyday also offers a generous introductory incentive in the form of a statement credit, up to $250 in total: $100 once you spend $2,000 on purchases in the first six months, plus 20% back if you use your card to pay with PayPal at merchants (up to $150 back). This card offers many benefits, including protection against damage and loss in car rentals.
Further, you can still earn statement credits even if no annual fee is attached to this card. For example, if you sign up for Home Chef’s $13.99/month subscription plan, you may earn up to $15 per month ($180/year), and if you sign up for The Disney Bundle’s $13.99/month plan, you can earn up to $7/month ($84/year). These perks are only available to those who sign up for them.
The Blue Cash Everyday does not offer bonus cash back on purchases made outside of the United States and charges a 2.7% foreign transaction fee on top of that (for a full breakdown of costs, see rates & charges). However, the Blue Cash Preferred® Card from American Express offers twice as much cash back at U.S. supermarkets, provided you are ready to forego the introductory rate on purchases for a few months.
Blue Cash Preferred generally charges $95 per year in yearly fees (see rates and fees for details); however, for the first year, new cardholders pay nothing. For purchases of up to $6,000 each year, cardholders will receive 6% cash back at U.S. supermarkets (then 1%). The promotional period for purchases is just 12 months long, shorter than the industry standard of 15 months.
Citi Rewards+ Card
Citi Rewards+’s “round up” feature can help you earn more rewards if you make a lot of minor purchases (under $10), and its introductory discount on new purchases can reduce expenses if you have to carry debt.
It’s a terrific option for those who want to rack up reward points on smaller purchases and put off paying for some expenditures until later.
Citi Rewards+ is a good option because of its three main benefits. It’s important to note that all of your rewards will be rounded up to the nearest 10 points for every dollar spent. It won’t make much of a difference on pricey things, but a $2 pack of gum now earns 10 points instead of 2 points, a 400% increase. It’s easy to overlook how rapidly the sum of several small purchases may grow.
Second, you’ll get ten percent back for every one hundred thousand points you redeem. If you redeem 2,500 points for a $25 gift card, for example, you’ll get 250 points back to use in the future. The annual maximum point rebate is 10,000, which translates to an additional $100 in gift card points.
And finally, if you have a Citi Premier card as well as a Citi Rewards+ card, you may transfer your points from one card to the other, giving you access to even more benefits, such as the ability to redeem points for travel at a later date or to transfer them to Citi’s airline and hotel affiliates.
When redeemed for gift cards, Citi Rewards+ points are worth at most 1 cent each unless you also have a premium Citi ThankYou card. Because the value of your points drops to 0.5 cents each when redeemed for cash, you’d be better served with the flat-rate cash back of our reference card, the Citi Double Cash, or one of the other 0% interest products on our shortlist.
Chase Freedom Unlimited
In addition to a 0% intro APR promotion, Chase Freedom Unlimited offers 1.5 percent cash back on all other purchases and 3 percent back on select categories, with the option to convert that cash back into travel rewards through the Ultimate Rewards program when used in conjunction with specific premium Chase credit cards.
It’s ideal for those in need of a rewards credit card with a low introductory rate who also wish to have the flexibility to redeem their cash back for travel at a later date.
This is a long-term card. The Chase Freedom Unlimited’s low introductory APR on purchases is enticing, but the card’s 1.5% cash back on all transactions will keep it in your wallet or purse for the long haul.
Also, Chase Freedom Unlimited contains three always-active bonus sections. The Chase Ultimate Rewards program offers all cardholders 5% cash back on travel purchases, 3% cash back on eating (including takeout and delivery), and 3% cash back at drugstores.
Chase Freedom Unlimited also adapts to your changing needs as you progress in life. Chase Freedom cash back can be converted to Ultimate Rewards points and redeemed for travel through the Chase travel portal or transferred to Chase’s airline and hotel partners for potentially even more incredible value if you later apply for and are approved for a Chase Sapphire Preferred or Chase Sapphire Reserve® card.
There aren’t many drawbacks to Chase Freedom Unlimited, but the 3% tax on foreign transactions is something to keep in mind. The card’s flat earning rate of 1.5% is lower than the 2% offered by several other no-annual-fee cards.
However, converting cash back into points might make the tradeoff worthwhile. This is especially true considering that Chase Ultimate Rewards is one of the most adaptable reward programs available and that the bonus categories on the card further increase its value.
U.S. Bank Visa Platinum Card
To help you avoid interest charges for as long as possible, the U.S. Bank Visa Platinum Card provides a 0% APR promotion on all payments for the first 18 billing cycles. Once the promotional period is up, the APR will increase to a variable rate between 18.24% and 28.24%.
This is the one for you if you need a credit card with a lengthy interest-free term and cell phone insurance.
Compared to other credit cards, the interest-free grace period of 18 payment cycles is exceptional, giving you the peace of mind that you can withstand a bad period without worrying about a future interest rate increase.
If you make a balance transfer during the first 60 days after opening your card account, you’ll be eligible for the same promotional interest rate on transfers as you would be on purchases. A high credit limit on the U.S. Bank Visa Platinum will allow you to use it for debt consolidation if you have many credit cards.
This card comes with extra benefits, like ongoing cell phone protection. The U.S. Bank Visa Platinum offers cell phone protection of up to $600, with a $25 deductible per claim, for up to two claims per calendar year when used to pay your monthly cell phone bill.
When it comes to credit cards, the U.S. Bank Visa Platinum isn’t something you want to keep for years. It has no potential for earning prizes, no sign-up incentive, or other noteworthy benefits. It would be best if you didn’t use it outside the country because the 3% cost on foreign transactions more than offsets the card’s lack of an annual fee.
In other words, after the introductory pricing period is up, you will only get much use out of it if you plan on using it to pay your cell phone bill every month to take advantage of the protection plan.
Capital One SavorOne Cash Rewards
The Capital One SavorOne credit card, which charges no annual fee, has an attractive introductory APR on purchases and debt transfers for 15 months and offers 3% cash back in several common spending categories.
This card is for you if you have an ample entertainment and dining budget (including food delivery services) but need a lengthy interest-free period.
Owning a card that gets 3% back on four highly significant categories — dining out, entertainment, streaming services, and grocery shops — means that it will be a valuable component of your card armory long after the promotional interest rate period has ended.
But more importantly, if you’ve grown accustomed to having food delivered in recent years, you should get the same 3% cash back if you order from Grubhub or Seamless as you would if you ate in the restaurant. This is because most food delivery services are seen as “dining” on the Capital One SavorOne.
Capital One SavorOne does not offer cell phone insurance, a perk becoming widespread among credit cards, even those with no annual charge. You can discover cards with considerably longer introductory periods if you need more time to carry debt.
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