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What Is a 0% APR Credit Card? – Forbes Advisor
Charlene Rhinehart is an expert in accounting, banking, investing, real estate, and personal finance. She is the founder of Wealth Women Daily and an author.
These deals are usually for new cardholders, but issuers sometimes offer them for cards you already have.
In some cases, a card may offer both types at once. That allows you to pay no interest on the things you buy for the first 12 months you have the card. Regular purchase APRs hovered between These offers are pitched as a way to help you move high-interest debt to a new card so you can pay it down without interest. Be sure to read the details on these promos, though. In both cases, the goal should be to try to have the balance paid off or at least mostly paid off by the time the introductory period expires.
To pay off a balance transfer in time, divide the total amount owed plus any fees by the number of months in the offer. Bank go America. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests.
You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings , which can also be found in the footer of the site. Table of Contents Expand. Table of Contents. Credit Cards Credit Card Basics. By Dawn Papandrea. Her reviews of credit cards and other financial products appear on The Balance and on personal finance sites elsewhere. Dawn earned her master’s in journalism and mass communication from New York University and has a bachelor’s in English from St.
John’s University. Learn about our editorial policies. Reviewed by Charlene Rhinehart. Learn about our Financial Review Board. Pros Good tool for paying off a large purchase Can give some budget wiggle room Only charge interest on post-promo balance Rates after the promotion tend to still be lower than average. Pros Can save you thousands of dollars in interest. Purchase APR offers are ideal for making large purchases that may take a little longer to pay off.
Balance transfer offers can help people who have previous debt, but be sure to crunch the numbers to come up with a payoff plan first. Article Sources.
What Does 0 Percent APR Mean? | Bankrate
Zero-interest credit cards (or 0% intro APR credit cards) let cardholders make payments with no interest charges on purchases. A 0% APR means that. A 0% APR credit card offers no interest for a period of time, typically six to 21 months. During the introductory no interest period, you won’t incur interest.
What is a zero percent apr – what is a zero percent apr. What Is A 0% APR Credit Card?
Kyle is shopping for a new TV at a local big-box electronics store. American Express. Cardholders should also note any missed payments during the promotional period could void the intro offer and possibly activate a penalty APR, which is typically higher than an ongoing APR and adds costly interest charges. First 20 billing cycles More information Close On purchases and balance transfers. The regular interest rate only kicks in on whatever balance remains outstanding at the end of the intro APR period.