Question 1

What does intro 0% APR mean?

Accepted Answer

"APR" stands for annual percentage rate. A credit card APR is its interest rate. Typically, a credit card balance that you carry from month to month accrues interest. But an introductory 0% APR means that a credit card balance won't accrue interest for a period of time after you open your account. Keep in mind that even though it's called an annual percentage rate, an intro APR doesn't necessarily last a whole year—so you may owe interest after a few months.

Question 2

How an intro 0% APR credit card works

Accepted Answer

Credit cards offering introductory 0% APRs don't charge interest on purchases, balance transfers, or both during a specific time period. You may save on interest if you plan to carry a balance during the introductory period or transfer a balance from another card. Any debt that you repay in full before the end of a 0% introductory period won't accrue any interest charges. But if there's still a balance on your account after the promotion ends, the remaining amount may begin to accrue interest at the standard rate. During the intro 0% APR period, you'll need to pay at least the minimum payment due every month to take advantage of the offer.

Question 3

What happens when the 0% intro APR period ends?

Accepted Answer

After a credit card's low APR promotional period ends, any balance left on the card begins to accrue interest at the standard APR. You can find your standard APR in your credit card agreement and on your statement.

Question 4

Does 0% interest apply to everything?

Accepted Answer

Sometimes, a promotional APR may only apply to certain types of transactions. For example, regular transactions—like groceries or online purchases—may not accrue interest during the promotional period, but balance transfers might. On the other hand, some credit cards offer a 0% APR only on balance transfers. In that case, new purchases accrue interest at the standard rate. Consider how you plan to use your new credit card to make the decision that's best for your needs.

Question 5

How long is the intro period?

Accepted Answer

Before you accept a 0% intro APR credit card offer, make sure the introductory period gives you enough time to repay your balance in full. You should also consider the standard APR, as that will determine the interest you pay for future balances.

Question 6

Is there a balance transfer fee?

Accepted Answer

If you plan on using a 0% APR offer to transfer a high-interest balance, fees may completely offset the money you want to save on interest charges. Credit card issuers may charge a flat fee or a percentage of the total balance transfer amount. And annual fees may cost you even more. To maximize your savings, look for credit cards with no annual fee. By taking the time to research your options, you may find the balance transfer credit card offer that's right for you.

Question 7

When shouldn't you do a balance transfer to an introductory 0% APR card?

Accepted Answer

In some cases, a low-interest balance transfer credit card offer may not be worthwhile for you. For example, if you don't think you can pay off the balance by the end of the intro period, you might pay more interest and fees than you would on the original card. If your outstanding balance is small enough to pay off in a few months, a balance transfer also may not be the best choice. In this case, the balance transfer fee on the 0% intro APR card might exceed the amount you would save in interest on your current card over a few months.

What Is an Intro 0% APR Credit Card?

Key Takeaways

See if you're pre-approved

Did you know?

APR vs. Interest Rate

Explore the low intro APR credit card offers page

What Is Accrued Interest on Credit Cards?

How to Lower Your Credit Card Interest Rate