If you need a no interest credit card to pay down debts that you’ve already accrued or to make a big, one-time purchase and hack away at the payments over time, look no further. A low rate credit card can be a boon to anyone who’s struggling with credit card debt, providing a means to consolidate and reduce payments on your debt. Plus, it offers significant advantages over layaway programs, most notably that you can make a purchase and pay it off later, without interest, rather than forking over 5-10% of the cost for the “privilege” of paying early. Here’s a list of NerdWallet’s favorite no interest credit cards, which offer rewards, low balance transfer fees, and some of the best medium-term credit card rates out there.
Longest intro periods
Citibank dominates the 0% intro APR field with three solid offerings and the longest no-interest periods in the market.
Citi Diamond Preferred
The Diamond Preferred offers a substantial 0% intro APR period of 18 months on both balance transfers and purchases, as well as a lower-than-usual 3% balance transfer fee. The combination makes it a solid choice if you’re looking to keep your interest payments to a minimum.
Citi Platinum Select
There’s not much different between the Platinum Select and Diamond Preferred: both have a 18-month intro period and low balance transfer fee. The only distinguishing factor is that the Platinum Select offers a few more little-used perks, like concierge service.
Citi Simplicity
Rounding out the Citi trinity is the Simplicity, which we think is the best of the 18-month intro period cards. Like the others, it has a 3% BT fee, but unlike the Platinum and Diamond, it has no penalty interest rate and no late fee, so if you should fall behind on your payments, you won’t be slapped with a $35 fee and 29% APR.
Rewards plus 0% APR
If you’re looking to rack up some rewards in addition to taking advantage of 0% interest, here are a few more credit cards to consider.
Discover More
The Discover More has a 0% intro APR period for 15 months on both transfers and purchases, and like the Citi cards, has a low 3% balance transfer fee. But in addition to a 0% period, it gives 5% cash back on rotating bonus categories like airfare, groceries and clothing, up to quarterly limits. From July through September, you can earn 5% back on gas, hotels, theme parks and movies, up to $300 in purchases; from October through December, you earn 5% on clothing and restaurants, also up to $300. In addition, you earn an unlimited 0.25% back on the first $3,000 in purchases a year and 1% thereafter.
Citi Dividend
The Citi® Dividend World MasterCard® - $100 Cash Back also has 0% APR on purchases and transfers for 12 months*, and gives 5% back on rotating bonus categories. But while the More is subject to quarterly rewards caps, the Dividend limits you to $300 in rewards each year. On the other hand, it has a $100 cash back signup bonus, so it’s probably a better deal in the short run.
Capital One Cash
This new arrival from Capital One gives what works out to 1.5% rewards on all purchases, as well as 0% interest on transfers and purchases until August of 2012. Plus, it has a $100 cash back bonus if you spend $300 in the first 3 months. The card earns 1% cash back throughout the year, and a 50% one-time bonus of all the rewards you earn that year, spent or unspent.