Right now, the average personal loan interest rate is 12.65%, according to Bankrate. But what if there was a way to get a 0% interest rate for almost two full years instead?

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Before taking out a personal loan, see if you can qualify for a 0% intro APR credit card. In many cases, you can accomplish the same goals — like consolidating high-interest debt or financing a large purchase — without paying any interest at all.

This strategy isn’t talked about enough, but it could save you thousands in 2025. Let’s break down how it works.

What is a 0% intro APR credit card?

A 0% intro APR credit card lets you avoid interest charges for a promotional period, often 12 to 21 months.

The no-interest period can be for either:

• New purchases (useful for big expenses you want to split into payments)
• Balance transfers (good for consolidating and paying off existing high-interest debt)

Some cards offer both.

During the 0% APR promo window, every dollar you pay goes toward your actual balance, not toward interest. It’s like hitting “pause” on the cost of borrowing.

This can be an amazing tool for people who are stuck with a mountain of existing credit card debt. Pausing interest gives them breathing room to pay down principal, and get out of debt faster with less interest.

If you’re looking for a longer 0% APR period, check out this card that we recommend. It offers nearly two years of 0% intro APR for both new purchases and balance transfers. That’s a huge window of time to make payments and pay no interest.

Why personal loans aren’t always the best choice

I get why people like personal loans. They’re great for bigger projects and payoff timeframes stretching multiple years. They’re also predictable, structured, and can be easier to qualify for with fair credit.

But here’s the problem. The interest starts immediately, and the rates aren’t exactly cheap.

For example, let’s say you take out a $10,000 personal loan at 11% APR for two years. Your total interest paid would be over $1,185.

Now compare that to putting that same $10,000 on a 0% intro APR card and paying it off over 21 months. You could pay zero in interest if you’re disciplined.

When using a 0% intro APR card makes sense

Credit cards aren’t magic. They can be a double-edge sword which can either help your finances or hurt them.

Here’s when 0% intro APR credit cards make sense:

Paying off high-interest credit card debt

Balance transfer cards let you move your existing balance(s) to a new card with 0% APR for a set period.

Making a large one-time purchase

Got an unexpected car repair or medical bill? Instead of financing it with a personal loan, a 0% intro APR card can let you pay it off gradually over a lengthy promo period.

You have good-to-excellent credit

Most of the top 0% intro APR cards require good credit or higher (typically 670+). So definitely check your score first before applying.

What to watch out for

Two quick gotchas that you should be aware of:

1. Balance transfers come with a fee. This is usually 3% to 5% of whatever balance you transfer over. This isn’t too bad though, as it’s usually more than offset by the interest you can save.
2. The 0% intro APR period eventually ends. And when it runs out, the normal APR for the credit card will kick in (and it’s likely super high!). So if you anticipate needing a loan for two years or longer, a personal loan may be a better fit.

Using a 0% intro APR credit card instead of a personal loan could save you hundreds (or even thousands) of dollars over the next couple years.

I’ve seen folks use these cards to escape debt faster, tackle emergencies, or finally feel in control again. It’s a tool, not a shortcut — but the right tool can make all the difference.

Looking for an interest-free alternative to a short-term personal loan? Explore the top 0% intro APR cards with up to 21 months of no interest

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