The card's ongoing (and much higher) APR will kick in, and it will apply to any new purchases and unpaid balance from the 0% promo period.
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.
Once the 0% or reduced-interest period is over, consider the: Interest rate you'll be charged on the balance. Interest rate you'll be charged on any future purchases. Annual fee or any other fees.
Once the introductory period expires, you have to pay interest on any remaining debts at the standard APR on the card. And as standard credit card APRs are usually at least 20%, that could prove expensive – especially if you can't clear the debt quickly.
If you want to keep riding that 0% APR wave, you basically only have one option: Open a balance transfer card with a different issuer.
The introductory APR offer won't last forever
It is important to remember that 0 percent intro APR offers typically expire 12 to 21 months after opening the card. That provides a limited window of time in which to benefit, but it can also provide a false sense of security.
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).
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
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.
A credit card with an introductory 0 percent APR can help you manage new debt or pay off old balances. 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.
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.
A balance transfer credit card can offer you many months to pay off high-interest debt in the form of a 0 percent introductory APR. But when that balance transfer period ends, interest charges are added to the balance if it isn't paid off.
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.
Companies that offer zero-interest loans tout these vehicles as no-lose opportunities for borrowers. A major purchase that might otherwise require a lump-sum payment can be spread out over 12 months to several years, with 0% interest, thereby creating a more palatable cash flow situation.
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.
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
A 0 percent APR or interest-free auto deal essentially means you borrow money for free. Your monthly payments reimburse the lender for the money it paid the auto dealer, but no extra money from your pocket goes into the lender's bank account.
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.
You can transfer as many balances as you want onto a 0 percent intro APR card, as long as you don't exceed the balance transfer card's credit limit — and as long as your transfers still qualify for the introductory APR offer.
A credit card with a promotional 0% annual percentage rate (APR) means there's no interest charged on purchases made with the card for a limited period. Because of the savings on interest, 0% APR cards can be a helpful tool to pay off 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.
In most cases, a 0 percent intro APR is a special promotional interest rate that allows you to borrow money for a limited period of time — usually between 12 to 21 months. During that time, no interest accrues on your qualifying credit card balance.
More than half of credit card debtors have carried a balance for at least a year. Fifty-three percent of credit card debtors have been in debt for at least a year — down from 60 percent in June 2024. Another nearly 2 in 5 (38 percent) have been in debt for less than a year.