0% Intro APR Cards: how they work and what to compare
A 0% introductory APR card charges no interest on purchases, balance transfers, or both for a limited time. The key question is what happens when the introductory period ends.
How an introductory period works
The promotional rate applies for a set number of months from account opening. After that, the regular APR applies to any remaining balance, and that rate can be high. Confirm whether the offer covers new purchases, transfers, or both, and whether the period runs from account opening or from the transfer date.
Intro APR versus deferred interest
Deferred interest is different from a true 0% APR. With deferred interest, interest may be charged retroactively on the original purchase amount if the balance is not paid in full by the end of the promotional period. Read the terms to see which one applies.
Planning the payoff
Divide the balance you expect to carry by the number of promotional months to see the monthly payment needed to finish on time. Making at least the minimum payment on time is typically required to keep the promotional rate.
Questions to ask before you apply
- How long does the introductory rate last and when does it start?
- What is the regular APR after the promotion?
- Does the offer apply to purchases, balance transfers, or both?
- Is this a true 0% APR or deferred interest?
- What happens to the rate if I pay late?
Common mistakes
Assuming the promotional rate lasts longer than it does, missing a payment, and adding new purchases that are not covered by the promotion.