The ability to use credit cards without exorbitant interest rates is nothing new. Banks and credit card companies have offered interest free credit cards for years now and the savvy saver has used them well.
But this knowledge isn’t universal.
It seems not everyone knows exactly how to leverage a 0% credit card to minimise the amount you pay in interest.
That changes today.
I’m going to outline the process we recommend for minimising credit card interest payments. I have used it myself and many other saving superstars do the same.
If you regularly have balances outstanding on your credit card, this post is for you!
Save hundreds by leveraging interest-free credit cards
The principle of using 0% credit cards is very simple, but the implementation takes a little planning.
It works a little something like this:
- Apply for a 0% credit card that has the longest zero percent term and low fees
- Transfer all your current credit card balance(s) to the card
- Pay off the balance as much as you can before the 0% term ends
- Apply for another 0% credit card close to the end of that zero percent term
- Transfer the balance across, rinse and repeat until everything is paid off
As you can see, it’s simple in theory, but you need to do a few things to get the best out of it.
Transfer as much debt as possible to the card
Depending on how much you owe, max out the credit limit on your new 0% credit card. You want to maximise the benefit you get, so use all the credit facility you can.
If you have other debt left over, pay that off first. Then begin paying off the 0% card.
Alternatively, if you qualified for one 0% credit card, you may qualify for another. Your original application will be on your credit report so your chances of getting a second may be less.
But it’s worth a try if you have more debt left over.
If you do go for a second 0% card, prioritise paying off one card while making minimum payments on the other.
Hopefully, by the end of the interest-free period, you’ll have paid one card off so the next round will be easier.
Pay off the card as quickly as you can
We’re not putting the debt on hold with a 0% credit card, we are just avoiding paying 19-30% interest on what you owe.
The way this works best is to transfer as much debt as possible to 0% to avoid paying interest.
That way, every penny you pay off the debt goes to paying what you owe and not adding to the profits of the bank or credit card company.
That’s where you get maximum benefit from a 0% card.
Once any other debts are fully paid off, prioritise paying off the card as quickly as you can.
Don’t spend on the card
You won’t be able to use the card for expenses if you max out the credit limit, but if you don’t, please don’t spend on the card.
Any spending aside from the balance transfer will very likely be at the card’s standard rate and not at the 0% rate. That could be anywhere from 19-30%!
Transfer the balance and put the card away somewhere safe at home.
Don’t be tempted to use the card for anything but the direst emergencies.
Time it right
Timing is also important when using 0% cards to pay off debt.
First, you need to time the debt transfer so it happens as quickly as possible. Many cards get you to transfer debt when you apply. Others provide a 30-90 day window to transfer balances.
Make sure you transfer them as quickly as possible to maximise the potential.
Second, you need to make a note of when the 0% period will end. Set a calendar reminder or use whatever you use for reminders.
If you have a balance outstanding at the end of the 0% period, apply for another interest-free credit card around a month before it expires.
This gives you plenty of time to transfer the balance and factors in any delays with approval or the application.
Shut it down
Once you transfer the balance to a new card, close the old one down unless you want to keep it for emergencies.
That’s for both the original credit cards you transferred from and the 0% card you just used. The fewer credit cards you have, the less temptation you have to spend.
0% credit card tips
These quick tips may repeat what’s above, just in a more digestible format.
1. Maximise savings with stoozing
Stoozing involves using a 0% purchase credit card to fund your spending, then depositing the equivalent amount into a high-interest savings account.
This strategy allows you to earn interest on borrowed funds, provided you repay the balance before the 0% period ends.
It’s crucial to ensure that your spending does not exceed your ability to repay and that you maintain a sufficient balance to cover bills and direct debits.
2. Utilise combo cards for flexibility
Combo credit cards offer both 0% interest on balance transfers and purchases. They provide the convenience of managing both existing debt and new purchases through a single account.
3. Monitor interest rate increases
Be aware that credit card interest rates have been rising. Average representative APRs have increased from 17.9% in 2015 to 25.2% in 2025.
This underscores the importance of paying off balances before the 0% period expires to avoid high interest charges.
4. Strategic use of multiple 0% cards
Some people manage multiple 0% credit cards to extend the interest-free period.
For example, someone I have spoken to said they had three 0% interest cards with varying end dates, allowing for staggered repayments.
This strategy can be effective if managed carefully, ensuring that balances are cleared before the promotional periods end.
5. Avoid unnecessary spending
It’s essential to use 0% credit cards responsibly. Avoid the temptation to make unnecessary purchases simply because you have available credit.
This approach can lead to accumulating debt that may become challenging to repay once the 0% period ends.
Leveraging interest free credit cards for your benefit
Interest free credit cards are very useful for paying down credit card debt while minimising the amount you pay in interest.
As long as you check for transfer fees and have a sufficiently long interest free period, they are an excellent way of paying down debt quickly.
At 0%, every penny you pay goes to paying down the amount you owe without paying 19-30% interest.
Over time, that can significantly speed up your debt clearance, which is why I recommend it!
Using 0% credit card FAQs
What if I owe more than the credit limit on the 0% credit card?
If you owe more than the credit limit on the 0% credit card, max out that credit limit and prioritise paying off what you couldn’t transfer first. You could apply for a second 0% card and transfer the balance to that but that won’t work for everybody. If you do that, prioritise paying one card off first, then move onto the next.
Should I pay off my credit card or overdraft first?
You should pay off your most expensive debt first. That will likely be your credit card but some overdrafts charge high interest. Make a note of all your debt and the interest rates charged for each. Prioritise paying off the debt with the highest interest rate first and work your way down the list.
How many interest free credit cards can you have?
You can have as many interest free credit cards as you qualify for. There is no limit to how many cards you can have, only the number of credit card companies willing to give you one. I would recommend keeping the number to a minimum so you have cards to apply for if you need to roll over a balance to another interest free card.
How do I apply for an interest free credit card?
You apply for an interest free credit card the same way you would apply for any card. Make sure your credit report is up to date and 100% accurate, compare cards and apply for the card with the lowest charges or longest interest free period.
What should I look for in a 0% purchase credit card?
You should look for transfer fees and the interest free period in any 0% purchase credit card. Purchase credit cards are different to balance transfer cards and are most useful if you’re planning to spend a lot of money in the near future.
