A 0% APR credit card offers no interest for a period of time, typically six to 21 months. During the introductory no interest period, you won't incur interest on new purchases, balance transfers or both (it all depends on the card).
Whilst loans with 0% interest don't exist, if you want to borrow a specific sum to make a bigger payment and spread the cost, they can offer a more cost-effective choice than some 0% borrowing options.
It appears that traditional lending institutions generally do not offer zero percent mortgages. Most mortgage lenders provide low or no down payment options, but these still come with interest rates1. Zero percent mortgages are quite rare and typically not part of standard offerings from traditional banks and lenders.
A 0 percent APR credit card can be a great financial tool, but there are debt traps to be aware of when using one. Always make the minimum payments on your credit card to avoid consequences like late fees, damaged credit and penalty APRs.
A credit card with an introductory 0 percent APR can help you manage new debt or pay off old balances. However, a 0 percent intro APR card can hurt your credit if it causes you to carry a higher balance than usual or if you carry your balance beyond the introductory offer period.
Your 0% APR deal could be canceled
Even with a 0% APR card, you'll still have to make monthly minimum payments — usually a small percentage of your balance. And if your payment is late, even by a single day, your card issuer could cancel the 0% offer and reset your card's interest rate to the ongoing APR.
0% intro APR cards require good to excellent credit
This means you'll need a FICO credit score of at least 670 or a VantageScore credit score of at least 661. If you have very good or excellent credit, which means a FICO score of at least 740 or a VantageScore of at least 781, your chances of approval are even higher.
The average 30-year fixed rate reached an all-time record low of 2.65% in January 2021 before surging to 7.79% in October 2023, according to Freddie Mac.
You'll usually need a credit score of at least 640 for the zero-down USDA loan program. VA loans with no money down usually require a minimum credit score of 580 to 620. Low-down-payment mortgages, including conforming loans and FHA loans, also require FICO scores of 580 to 620.
You probably can't borrow money interest-free from a traditional lender, but you may be able to get a no-interest loan from: Retailers: Car dealerships and other retailers may offer 0% annual percentage rate (APR) financing for a set amount of time.
Apart from borrowing from various lending institutions, you can also look into government interest-free loans. However, before opting for this loan, you must carefully assess your needs and affordability. At Tata Capital, we offer interest-free consumer durable loans for 6 to 24 months with minimal documentation.
Credit cards offering introductory 0% APR don't charge interest for a specific time period (typically six months to a year) on purchases, balance transfers, or both. That could mean you can save on interest if you plan to carry a balance during the introductory period or transfer a balance from another card.
Returning to monetary policy, following the global financial crisis, central banks cut nominal interest rates aggressively, in many cases to zero or close to zero.
Credit cards with 0% interest on purchases can be a good way to spread cost and build up your credit score. For example, you could use one to book flights, pay for a holiday or cover the cost of home improvements and then pay it back in monthly repayments.
Today's rates seem high compared with the recent 2% rates of the pandemic era. But experts say getting below 3% on a 30-year fixed mortgage is unlikely without a severe economic downturn.
30 Year Mortgage Rate in the United States averaged 7.72 percent from 1971 until 2025, reaching an all time high of 18.63 percent in October of 1981 and a record low of 2.65 percent in January of 2021. This page includes a chart with historical data for the United States 30 Year Mortgage Rate.
If your credit is excellent, you will qualify for a 0% interest rate. However, if your credit score shows up below 800 on your report, you will need to confirm that the rate is available for you at the dealership. Negotiate the best deal first.
Find 0% APR credit cards from Mastercard. Compare cards from our partners, view offers, and apply online for the credit card that best fits your needs.
Of course, you can live without a credit score; it's not oxygen. And credit reports and scores are not always easy to live with. It's important to monitor them, and sometimes you may have to dispute errors you find.
You'll typically need good or excellent credit (a score of at least 690 on the FICO scale) to qualify for most 0% APR credit cards. The ongoing interest rate, which is charged once a card's promotional period ends, will also depend on your creditworthiness.
You may be able to secure a 0% APR offer by requesting one from your credit card issuer. Offers are generally for balance transfers, but some issuers also offer pay-over-time plans or credit line loans. Using your card responsibly and negotiating a retention offer can increase your chances of getting a 0% offer.
If you have a low-interest loan or 0% financing, there is little to no benefit to an early payoff. The same is true if you're close to the end of the loan. If you don't have an emergency fund, use your extra cash to start one before you pay off your car loan.