Promotional periods with a 0% APR may last anywhere between 6 and 24 months. 0% APR promotions should be clear about what types of transactions qualify and how long the introductory promotional period lasts.
There will be an expiration date on your ``paper'' statement if you have an introductory APR. It's on the last page, that isn't blank, under the interest charges category.
A 0 percent APR credit card can be a great financial tool, but there are debt traps to be aware of when using one. Always make the minimum payments on your credit card to avoid consequences like late fees, damaged credit and penalty APRs.
Some lenders offer an introductory interest-free period on credit card purchases or balance transfers. The length of this period will vary depending on the card you choose, but it could last for 2 years or more.
Credit cards with 0% interest on purchases can be a good way to spread cost and build up your credit score. For example, you could use one to book flights, pay for a holiday or cover the cost of home improvements and then pay it back in monthly repayments.
The date your 0% interest rate ends
You can find the expiry date of any promotional or introductory interest rate, on the transactions pages of your PDF or paper statement in the breakdown of balance.
However, a 0 percent intro APR card can hurt your credit if it causes you to carry a higher balance than usual or if you carry your balance beyond the introductory offer period.
Your 0% APR deal could be canceled
Even with a 0% APR card, you'll still have to make monthly minimum payments — usually a small percentage of your balance. And if your payment is late, even by a single day, your card issuer could cancel the 0% offer and reset your card's interest rate to the ongoing APR.
If you're disciplined to make on-time payments and pay off your balance before the intro period ends, then you will likely do well with a 0% APR credit card. However, if the 0% tempts you to overspend, you may face paying high interest charges if you're still carrying a balance after the intro period.
0% intro APR for 15 months from account opening on purchases and balance transfers. After the intro period, a variable APR of 19.49.
A 0% APR credit card is a credit card that charges no interest on qualifying purchases, balance transfers or both for a fixed amount of time. This no-interest period is called a promotional period. If the promotional period is based on opening a new account, it may be referred to as an introductory period.
Yes, you should make a plan to pay off a zero-interest credit card prior to the end of the promotional APR period. Failing to do so means you'll face interest charges on your remaining balance.
When your intro APR ends, your credit card's regular APR will kick in on any remaining and new balances. Knowing when your promotional period ends helps you pay off your balance beforehand and keeps you from being surprised by mounting interest on a residual balance.
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 on new purchases, balance transfers or both (it all depends on the card).
Intro purchase APR is 0% for 15 months from date of account opening then the standard purchase APR applies. Intro Balance Transfer APR is 0% for 15 months from date of first transfer, for transfers under this offer that post to your account by April 10, 2025 then the standard purchase APR applies.
Cons of a 0% APR Car Loan
Only borrowers with outstanding credit qualify. Availability is limited to specific models and trim levels. Shorter loan terms mean higher monthly payments.
0% APR auto loans are reserved for "well-qualified" buyers.
In most cases, "well-qualified" refers to borrowers with a credit score of 740 or higher. If a borrower isn't in this credit bracket and applies for the 0% APR offer, they could be taking a hit on their credit score that could have been avoided.
If you have a low-interest loan or 0% financing, there is little to no benefit to an early payoff. The same is true if you're close to the end of the loan. If you don't have an emergency fund, use your extra cash to start one before you pay off your car loan.
Experts suggest keeping credit utilization at less than 30 percent to maintain good credit, however, those with excellent credit keep it below 10 percent. Lower your credit utilization by paying off revolving debt, requesting a higher credit limit, performing a balance transfer or applying for a new credit card.
Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.
You'd save money on interest
If you paid $200 per month on such a card, you could become debt-free in 20 months with $0 in interest paid.
Key Takeaways
Zero-interest loans, where only the principal balance must be repaid, often lure buyers into impulsively buying cars, appliances, and other luxury goods. These loans saddle borrowers with rigid monthly payment schedules and lock them into hard deadlines by which the entire balance must be repaid.
An interest free period is determined by whether the closing statement balance is paid in full by the due date. A typical interest free period is made up of your 30-day statement cycle, plus the 25 days to the payment due date.
Even though you won't be charged interest during your promotional 0% APR period, you'll still owe a minimum payment amount each month. In fact, if you don't pay at least the minimum due each billing cycle, your interest-free offer may be voided.