Key takeaways

  • Some credit card options offer a 0 percent intro APR on both purchases and balance transfers, while other cards only offer a 0 percent intro APR on balance transfers or a 0 percent intro APR on purchases.
  • If you're interested in a credit card with a 0 percent intro APR offer, be sure to read the terms carefully. Intro APR offers only last for a specific period of time, and you'll typically need to transfer any balances within the first few months of account opening. You'll also need to pay a balance transfer fee of 3 percent to 5 percent of each transfer.
  • Your 0 percent intro APR offer can be canceled if you don't manage the account responsibly.

Unless you’ve been living under a rock, you’ve probably heard about credit cards that offer a 0 percent intro APR. Maybe you received a preapproved credit card offer in the mail, or perhaps you saw a commercial about balance transfer credit cards that can help you pay down debt. Either way, it’s important to understand what a 0 percent APR card can do — and what it can’t do.

A credit card with a 0 percent intro APR offer can be a valuable tool, but it can’t magically make your financial woes disappear. If you’re thinking of signing up for a card that gives you a 0 percent intro APR, there are plenty of things to know about 0 percent APR cards before you do so you can get the most out of your credit card and avoid some very common pitfalls.

1. You’ll still have a monthly minimum payment

First off, you should know that 0 percent APR credit cards still require you to make a minimum payment each month. This payment won’t include any interest for balances that qualify for the 0 percent intro APR offer, but it’s due just the same.

This can be seen as both a blessing and a curse. Sure, being eligible for an intro APR offer doesn’t get you off the hook when it comes to making a payment on your card. However, the fact that no interest is accruing does mean each dollar you pay goes directly toward the principal of your balance. Without any interest due, making payments helps you to pay off your debt faster.

2. Your intro APR may apply to balance transfers, purchases or both

Another common misconception about 0 percent APR credit cards is the idea that they let you skip interest regardless of how you use your card. The reality is quite different, and you’ll notice this when you begin comparing credit cards. While some cards only offer a 0 percent intro APR on balance transfers, others only apply a 0 percent intro APR offer to purchases made with your card. Some card options offer a 0 percent intro APR on both purchases and balance transfers, either for the same length of time or different lengths of time.

What does this mean for you? If you get in the habit of making purchases on a balance transfer card that only applies a 0 percent intro APR to transferred balances (and not purchases), you may quickly notice that interest is accruing on your card. This is due to the fact that your card is charging different rates on balance transfers versus new purchases, but also because you typically do not qualify for a grace period on purchases when you’re carrying a balance.

All you have to do to find out how interest is charged is to read the fine print on the credit card you’re considering. For example, the intro APR offer terms for the Citi® Double Cash Card, a popular balance transfer card, are as follows:

  • New cardholders can get a 0 percent intro APR on balance transfers for 18 months, after which a variable APR of 19.24 percent to 29.24 percent applies.
  • Balance transfers must be made in the first four months of account opening to qualify for the intro APR offer.
  • A 3 percent intro balance transfer fee (minimum $5) applies to balances transferred within the first four months; after that, a 5 percent balance transfer fee applies.
  • There is no 0 percent intro APR offer on purchases.

3. Your 0% APR can get canceled

Here’s another important detail: If you qualify for a 0 percent intro APR offer on your credit card but your monthly payment is late, you may become ineligible for the intro APR offer immediately. This means you can go from paying a 0 percent intro APR on your credit card balance to the variable rate that your card charges overnight.

That’s one good reason to always pay your credit card bill early or on time. Another reason to do so is the fact that your payment history is the most important factor that makes up your FICO credit score.

4. Balance transfer fees can eat away at your savings

Before you transfer a balance to a credit card that offers a 0 percent intro APR for a limited time, you should be aware of any balance transfer fees you’ll have to pay. These fees typically tack on 3 percent or 5 percent of the balance(s) you want to transfer, or $300 to $500 in fees for every $10,000 in debt you transfer to your new card.

While paying a balance transfer fee can make financial sense due to the interest savings you can achieve with a 0 percent intro APR offer, you’ll still want to factor these fees into your debt payoff plan.

5. The 0% APR offer won’t last forever

Credit cards that offer a 0 percent intro APR each have their own unique perks and benefits. Some come with intro APR offers that last a lot longer than others, with offers typically ranging from 12  to 21 months.

Since you won’t get a 0 percent intro APR forever, you should plan ahead. Your best bet is to pay down your debts (or most of your debts) while interest isn’t accruing during the intro APR period. Once your 0 percent intro APR offer ends, your remaining balances will begin accruing interest at the standard variable interest rate.

6. Some 0% APR cards let you earn rewards

Finally, you should know that some cards with a 0 percent intro APR let you rack up cash back or flexible rewards for each dollar you spend. While these offers can be enticing, you should think long and hard about how spending more to earn rewards might impact your debt payoff plans.

Here’s one of our top 0 percent APR card tips: If you’re looking at balance transfer credit cards for the sole purpose of getting out of debt, you should probably avoid cards that let you earn rewards, which might tempt you to start making purchases on the card during your intro APR period. If you just want a 0 percent intro APR on purchases for a limited time, on the other hand, earning some rewards on your spending might not hurt as long as you’re not inclined to overspend.

The bottom line

Credit cards that come with a 0 percent intro APR offer can be fairly diverse, so make sure to explore the best 0 percent APR credit cards before you decide. You may want a card with a 0 percent intro APR on purchases, or you might be better off with one that offers a 0 percent intro APR on balance transfers only. Make sure you compare all of your options based on the length of their introductory offers, the fees they charge and the cardholder perks you want.