When looking to consolidate debt, make a large purchase, or cover living costs for a few months without incurring any interest charges, a credit card with a 0% introductory APR might be beautiful. Applying for a credit card with a promotional interest rate of 0% might save you a significant amount of money, given the current average credit card interest rate of roughly 18%.
However, what will happen once your promotional APR of 0% expires? It's risky to carry a load from one month to the next if your credit card's promotional rate is about to expire, and you will only be able to pay off the entire balance after the new, higher rates kick in.
Here's everything you need to know about credit cards with no interest, from finding out when your introductory APR period expires to how to keep from paying interest afterwards.
What Happens When The 0% Intro APR Period Ends?
Interest will be charged on delinquent amounts after the promotional period ends. To clarify, this applies to both new charges and debt transfers made within the particular APR period. To prevent being caught with a significant amount on a credit card that is about to start collecting interest, be sure you know exactly when your promotional APR expires and what the usual variable APR will be after that.
What's Your New APR After Your Intro Period?
If you still need to do so, review your most recent credit card statement to learn when your promotional APR will expire. Your current APR and the duration of any introductory APR should be displayed.
If you need help locating the day your introductory APR expires on your credit card statement, look it up in your online account or mobile app. Check with your credit card company by dialling the number on the back of your card and speaking with a representative.
In some situations, the introductory 0% APR term on a credit card might expire if the cardholder misses or is late with a payment. It is essential to examine the fine print of your credit card agreement to see whether or not a late payment will result in the loss of the promotional interest rate.
Purchase vs Balance Transfer 0% APR
Even if your credit card provides a 0% intro APR on purchases, any balance transfers you do will be subject to the standard interest rate. Similarly, interest will be charged from the purchase date forward if your credit card's introductory 0% APR period solely applies to balance transfers.
Many of the finest cards that offer introductory 0% APR periods do so for purchases and debt transfers, which is a huge help. However, it's typically advisable to pick one or the other and stick to it.
Do not make any further purchases on your credit card if you are trying to get out from under your debt load, as this will only add to your total amount owed.
While an introductory 0% APR period on purchases is ideal for spreading the cost of a sizable purchase out over time, putting a balance transfer onto a credit card might severely restrict your ability to make additional purchases.
Discounted Introductory APR For Purchases
With a credit card that provides an introductory annual percentage rate (APR) on purchases, you won't have to worry about paying interest on your balance until the intro APR period finishes.
To avoid incurring interest, pay your balance in full before the introductory APR expires. Transferring a balance to a credit card that doesn't provide 0% interest on balance transfers will result in interest charges from the new card's issuing bank.
Interest Rate Intro For Balance Transfers
Paying off high-interest debt during zero interest is possible if you have a balance transfer credit card that provides a 0% intro APR on balance transfers. We've compiled a list of the top credit cards for doing balance transfers.
Remember that the special interest rate could only apply to balance transfers performed during a specified time frame, like the first four months of card membership. Interest will begin to accrue on any balance transfers made after that time.
A credit card with a 0% introductory APR debt transfer promotion will charge the regular purchase interest rate on any money you put on the card.
Intro APR On Purchases And Balance Transfers
Credit card purchases and debt transfers that qualify for a 0% introductory APR term will accrue no interest until the conclusion of the promotional APR period.
