0% Interest Credit Cards | Compare and Apply | ClearScore GB (2024)

FAQs

What credit score do you need for a 0 interest card? ›

0% 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.

A 0% APR is not good for your credit if you overspend, as high credit utilization and missed payments hurt your credit score. If you end up carrying a balance from month to month after the 0% period ends, you will also owe expensive interest charges, making it hard to pay your bills on time and build credit.

While a 0% utilization is certainly better than having a high CUR, it's not as good as something in the single digits. Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score.

Carrying a balance can negatively impact your credit score by increasing your credit utilization ratio. It is important to have a plan to pay off any balance before the end of the 0 percent intro APR period, and to make at least the minimum monthly payments on time.

You might not qualify for a 0% APR card

If you're looking to open a 0% APR card, check your credit score first. Introductory no-interest credit cards typically require good credit (scores 670 to 739) or excellent credit (scores 740 and greater).

You need a credit score of at least 700 to get a 0% APR credit card, as credit cards with 0% APR promotions require good or excellent credit for approval in most cases. The higher your credit score is, the better your odds of approval for a 0% APR credit card will be.

Avoiding interest is always a good goal, but zero-interest loans can lead buyers to overspend and come with a lot of strings attached. Carefully evaluate your purchase—is this what you intended to buy, and will you realistically pay off the loan within the given time?

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.

There isn't necessarily a catch to 0% APR financing offers. These deals are real, and you won't pay any interest on your car loan. However, that doesn't mean they're the best deal for you. Even without interest payments, you could still pay more overall.

It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

What happens if I don t use a credit card with a zero balance? ›

If your balance is zero because you use your card and pay any balance off in full at the end of every billing cycle, you can keep the card indefinitely. But if your account remains inactive for some time with a zero balance, the issuer may cancel your account.

Paying your balance in full and on time is just about the smartest thing you can do with your cards. In addition to keeping you out of debt, paying in full saves you money and can boost your credit.

Your credit utilization ratio goes up

By closing a credit card account with zero balance, you're removing all of that card's available balance from the ratio, in turn, increasing your utilization percentage. The higher your balance-to-limit ratio, the more it can hurt your credit.

Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many. The important thing is to make sure that you use your credit cards responsibly.

Boost Your Credit Score

Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.

In order to qualify for a zero interest loan, you'll need a very high credit score (usually 740 or higher). The exact range will vary depending on who you're shopping with, but they're not handing out this type of loan to someone who doesn't already have a proven track record with debt.

Lenders want to ensure you have a near-perfect history of making payments and handling your debt before offering you no-interest financing. An excellent credit score — 781 or higher — will get you the best deal on financing, but you can still qualify for a competitive interest rate if your score is 670 or higher.

Generally speaking, borrowers with credit scores of 760 or higher get charged the lowest interest rates. On conventional conforming loans, which must adhere to Fannie Mae and Freddie Mac guidelines, a 780 may qualify you for a slightly lower rate—though it depends on your down payment amount.