Credit cards offering a 0 percent introductory APR are especially useful if you need to pay off old debt, fund a big purchase or cover a few months of expenses interest-free. Current credit card interest rates average more than 20 percent, meaning that applying for a credit card with a promotional 0 percent interest rate could save you a lot of money.
But what happens when your 0 percent intro APR ends? Depending on your card, your 0 percent promotional period can last from just a few months to 18 months or more. That includes balances you charged or transferred to the credit card during the promotional APR period — not just new charges. After your introductory interest rate ends, your APR reverts to a standard variable APR rate determined by your lender.
You can also call the number on the back of your credit card and ask a customer service representative to check your account and confirm the promotional period expiration date. In some cases, missing a credit card payment or making a late payment can cause your 0 percent intro APR period to end early. If your credit card offers a 0 percent intro APR on purchases only, any balance transfers you initiate on the card will accrue interest.
Likewise, if your credit card offers a 0 percent intro APR on balance transfers only, any purchases you make on the card will accrue interest. Luckily, many of the best cards with 0 percent APR periods offer an intro APR on both purchases and balance transfers.
If your focus is to pay down debt, avoid charging new purchases on your card, as you may end up simply replacing your old debt with new debt. On the other hand, a 0 percent APR on purchases is great for paying off a large purchase over time, but loading up the same card with a transferred balance could limit your spending power and drive up your credit utilization, which can be bad for your credit score.
