The best 0% APR credit cards: Finance debt or new purchases interest-free for up to 20 months

Credit cards can be a great asset for financing new purchases and consolidating old debt. Some of the best credit cards offer no interest on new purchases, balance transfers or both — for up to 20 months.

This can add up to substantial savings if you're carrying a balance on a high interest credit card, where a portion of your payment goes toward interest charges. If you have lingering debt on an existing card or plan on making a large purchase, it's financially smart to open an intro 0% APR credit card, if you use it responsibly.

Below, CNBC Select rounds up some of the best credit cards that offer no interest for at least 15 months, so you can maximize savings. Credit card recommendations are broken up by length of intro 0% APR period.

20 months

• U.S. Bank Visa® Platinum Card

18 months

• Citi® Double Cash Card
• Citi Simplicity® Card
• Wells Fargo Platinum Visa® card

15 months

• Amex EveryDay® Credit Card
• Wells Fargo Cash Wise Visa® card
• Capital One® SavorOne® Cash Rewards Credit Card
• Chase Freedom Flex℠
• Chase Freedom Unlimited®
• American Express Cash Magnet® Card
• Blue Cash Everyday® Card from American Express

FAQs

• How do 0% APR credit cards work?
• What credit score is required for 0% APR credit cards?
• How to get the most benefit from 0% APR cards
• How to compare 0% APR and low-interest cards
• When should I avoid a 0% APR credit card?
• What's the best way to use a 0% APR credit card?
• How do I avoid interest on a credit card?

A 0% APR credit card offers no interest for a set amount of time, usually 12 to 20 months. During the intro 0% APR period, you won't be charged interest on new purchases or balance transfers. These cards can help you consolidate credit card debt with a balance transfer, pay for new purchases over time without incurring interest charges or both.

Balance transfer credit cards may set a limit on the amount of debt you can transfer, which is often less than your overall credit limit. Plus you may be charged a balance transfer fee, typically 3% per transfer.

Most 0% APR credit cards are reserved for consumers with good (670-739) or excellent (740 and greater) credit. If your credit score is fair (580 to 669) or poor (below 669) you may have trouble qualifying for a 0% APR card.

A 0% APR card is most beneficial when you understand the terms of the offer and set up a plan to pay off your debt. Follow these tips to get the most benefit out of your card:

Read the fine print

Make sure you familiarize yourself with any fine print associated with the 0% APR offer, such as expiration date, timeline for completing a balance transfer, any balance transfer fees and the interest rate once the intro period ends.

Create a repayment plan

You'll need to come up with a plan to pay off credit card debt. The amount you need to pay each month in order to have a zero balance at the end of the intro period depends on the length of the intro period.

For example, if you have a $4,500 balance on the Wells Fargo Cash Wise Visa® card, which offers no interest for the first 15 months on balance transfers and purchases (then 14.49% to 24.99% variable APR), you'll need to pay $300 each month to pay off your old balance before the intro period ends.

But if you have the Citi® Double Cash Card, with 0% for the first 18 months on balance transfers (then 13.99% to 23.99% variable APR), the monthly payment decreases to $250.

Pay off your balance in full

It's very important to pay off any transferred debt or lingering new purchase balances before the intro 0% APR period ends. If you don't, expect to be hit with the regular purchase APR. And if you have a store card, you could be hit with a bill for all the interest you accrued since the date you made your purchase or transfer (known as deferred interest). None of the cards on this list charge cardholders deferred interest.

If you're not sure whether a 0% APR card or a low interest credit card is the right choice, ask yourself the following questions.

• Are you carrying debt from a high interest credit card? Then you should consider a balance transfer credit card with up to 20 months no interest.
• Do you plan on making a large purchase? A 0% APR card can provide you with a lengthy intro period that allows you to pay off debt for over a year with no interest.
• Do you carry a balance month to month? A low interest credit card offers a relatively consistent APR every month, compared to 0% APR cards that typically charge high interest rates after the into period ends.

After you determined which credit card you want to apply for, compare cards by these key factors:

• Length of intro APR period: Cards can have intro periods anywhere from three months to 20 months. Many popular rewards cards offer no interest for 15 months, and non-rewards cards can have 18- and 21-month intro 0% APR periods. For new purchases or lingering debt, the longer the better, but if you're completing a balance transfer, consider the cost of any balance transfer fees before applying.
• Regular APR: Credit cards offering intro 0% APRs tend to have higher regular APRs than low interest cards. Consider the regular APR before settling on a card if you think you may carry a balance once the intro 0% APR period ends.
• Balance transfer fee: Many balance transfer cards charge 3% to 5% fees per transfer. This fee can be outweighed by the amount you save on interest but make sure to do the math. Check out the best no-fee balance transfer credit cards.
• Annual fee: Most 0% APR cards and low interest cards have no annual fee, but some may. Make sure to review the annual fees associated with the cards.
• Rewards and added perks: The best 0% APR cards also offer cash back, points and miles, in addition to added perks, such as purchase protection and exclusive entertainment access. While these are nice benefits, paying off debt should be your primary goal.

A no-interest credit card is a great tool for financing new purchases, but you need to be careful how you use one. If you have a history of overspending, you may be tempted to spend more on a 0% APR card since you have upwards of a year to pay off your entire balance without interest, compared to a regular card that requires you to pay your balance in full each billing cycle to avoid interest charges.

Credit cards that offer no interest on purchases and/or balance transfers are a great asset for consumers looking to save on interest charges when they carry a balance month-to-month. The best way to use a 0% APR card depends on your individual situation, but typically falls into one of three ways:

1. If you plan on making large purchases, such as new appliances or workout equipment, and need more time to pay them off, a 0% APR card can help you pay over time with no interest charges.
2. If you have debt on a high interest card, completing a balance transfer to a card with no interest for up to 20 months can help you pay it off faster and cheaper.
3. If you fall into both No.1 and No.2, a card with no interest on new purchases and balance transfers can help you pay off large expenses and old debt at the same time, though you'll be limited to how much you can spend and transfer based on the card's credit limit.

Keep in mind that you'll need to make minimum payments on your balance and pay it off in full before the intro period ends to avoid interest.

The simplest way to avoid interest charges on a credit card is to pay your balance in full by the due date. However, there's an exception with 0% APR cards. During the length of the intro period, you are only required to make the minimum payments on your balance, and you won't be charged interest on new purchases and/or balance transfers. Once the intro period ends, any lingering balances or new purchases and transfers will incur the regular APR.

To determine which credit cards offer the best value, CNBC Select analyzed 234 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

CNBC Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

CNBC Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.

Information about the U.S. Bank Visa® Platinum Card, Wells Fargo Platinum Visa® card, Amex EveryDay® Credit Card, Wells Fargo Cash Wise Visa® card, Capital One® SavorOne® Cash Rewards Credit Card and Chase Freedom® has been collected independently by CNBC and has not been reviewed or provided by the issuers of the cards prior to publication.

For rates and fees of the Amex EveryDay® Credit Card, click here.

For rates and fees of the American Express Cash Magnet® Card, click here.

For rates and fees of the Blue Cash Everyday® Card from American Express, click here.