What Is 0% APR?
7 Min Read | Last updated: July 3, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn what 0% APR is and how it can transform your financial strategy. Maximize savings with our guide to using 0% APR (Annual Percentage Rate) credit cards wisely.
At-A-Glance
- A 0% introductory Annual Percentage Rate (APR) can mean no interest charges apply to most purchases during a set promotional period. Exceptions apply in some cases, though, and cash advances and balance transfers may still incur interest.
- 0% introductory APR periods may last up to 21 months, giving you time to pay down large purchases or transfer expensive balances before interest kicks in.1
- Paying off your balance before the promotion ends, making your monthly payments on time, and keeping balances low may positively impact your credit score over time.
Your credit card’s Annual Percentage Rate (APR) may feel like a mystery, but it’s just a way to measure the real yearly cost of borrowing money on your credit card.2 When it comes to large purchases or debt management, credit cards with a 0% introductory APR offer might help you save on interest. Keep reading to learn tips for maximizing what 0% APR can do for you.
What Is a 0% APR Credit Card?
For some, 0% APR credit cards can be a tool for saving on interest or paying down credit card balances for better credit health quickly. However, failing to pay off the balance before the promotion ends could increase your credit utilization ratio, which can have negative credit score consequences.3 Additionally, it’s important to realize that even with a 0% APR credit card, you’ll still need to make your payments on time each month.
How Does 0% APR Work With Credit Cards?
0% APR cards generally offer a 12 to 21 month promotional period with no interest charges on eligible balances.4 In many cases, you may see a temporary dip in your credit score after approval, but scores usually stabilize with time.5 You could make a larger purchase or begin a balance transfer as soon as the promotional period begins, avoiding high-interest charges for the specified timeframe.
What Does 0% APR Mean for You?
Whether you’re struggling to pay a credit card bill in full each month or have other strategic plans for a 0% APR credit card, reviewing your financial goals before applying may help you make a better decision. Here are some goal examples:
- Pay down high-interest debt by transferring the balance to a 0% intro APR credit card so that 100% of your payment goes toward the principal.
- Make a large home-goods, electronic, or travel purchase without having to tap into cash in the bank.
- Have a temporary option for 0% interest borrowing should an emergency arise, like suddenly needing to replace a major appliance.
Remember, while 0% APR promotion cards may be marketed as balance transfer cards, checking the terms and conditions can help clarify if 0% interest applies to a former balance, entirely new purchases, or both.6
0% APR Intro Questions to Consider
0% introductory APR interest credit cards aren’t identical, so it’s important you fully understand all terms and conditions. Here are some questions to ask:
- When does the introductory period end?
No matter which card you choose, the 0% interest period will expire, and if you carry a balance forward, interest will apply. Be sure to read the terms and conditions carefully. - What’s the card limit?
The issuer can decide how much credit to extend you after you’re approved, and it may not be as much as you were hoping for.7 - When you start paying interest, how much will it be?
When the promotional 0% interest period ends, the card’s ongoing interest will kick in. Paying the balance off before the introductory period ends helps you avoid high APR charges after the introductory phase, but be aware of what that percentage actually is. - Are you really getting 0% interest or deferred interest?
Let’s say you got a 0% introductory interest credit card and transferred a $2,000 balance to it. At the end of the promotional period, you still have a $400 balance. A true 0% introductory interest card will begin charging interest the first day after the promotional period and only on the $400. A deferred interest card, on the other hand, will charge interest on the full $2,000 balance and for the entire length of the promotional period retroactively, potentially wiping out any savings you may have accumulated. - What fees are you paying?
With a 0% interest credit card, you won’t be incurring interest charges during the promotional period, but additional fees may still apply. These could vary depending on the card, but some examples of additional fees and charges include a 3% to 5% balance transfer fee or penalty fees.8 - Is the promotional period conditional?
Some interest-free card agreements permit the issuer to end the promotional interest-free period earlier than scheduled if, for example, you make a late payment.9 - Does your credit history matter?
0% intro APR card issuers can approve people with strong credit scores. If you feel you might unnecessarily risk a hard credit check during your application, you can research a less competitive, low-interest credit card better aligned with your current score.
Did you know?
Looking for a 0% intro APR credit card? American Express® offers two personal credit cards with 0% introductory interest, the Blue Cash Everyday® Card, and the Blue Cash Preferred® Card. You can also check for credit card offers that align with your credit profile with no initial impact to your credit score.
Tips to Make 0% APR Work for You
Using 0% APR cards successfully may require a lot of discipline. Otherwise, there could be less of an advantage to a limited 0% interest period, and you may end up spending more than intended.
These tips can help you stay on track:
- Avoid making a large purchase with the card and hoping you can pay it off before the card charges interest. Similarly, avoid maxing out your new card, as a high credit utilization ratio may negatively impact your credit score. Instead, make sure you have a plan for payments that will help you to pay off the balance before the introductory period ends.
- Grab your calculator and figure out how much you’ll need to budget each month to pay off the balance during the introductory period. For example, if your card offers 12 months of 0% interest and you build up a $5,000 balance, you may need to budget about $417 per month.
- Pay careful attention to what you charge and set up automatic payments or phone reminders so you don’t miss a payment.
- If you’re already a pro at paying your balances in full each month, some 0% APR cards may not offer you as many benefits, so consider other rewards credit cards you could be eligible for.
Frequently Asked Questions
Each credit card issuer sets its own eligibility requirements. It could be smart to look into prequalification, where a card issuer will tell you if you meet initial eligibility requirements, before you apply for a 0% APR credit card.
Using 0% APR cards or credit lines does not inherently make a negative impact on credit scores. However, if you were to carry a balance past the introductory period, violate a term or condition of your card agreement, or dramatically increase your credit utilization, you may see negative effects.
A credit card with 0% APR does not mean there is no minimum payment. Cards with a 0% APR promotional period still require minimum monthly payments, but typical purchases won’t include interest for a set time as long as at least the minimum payment is made on time.10 Note that exceptions do apply, and interest may still apply for some transactions such as cash advances or balance transfers.
The Takeaway
When used wisely, 0% introductory APR credit cards could help you save money you’d otherwise spend on interest charges for revolving balance amounts. But to maximize savings and avoid credit complications, you’ll want to set clear financial goals and, if possible, commit to paying off the full balance during the no-interest promotional period.
1,2,4 “What does 0% APR mean?,” Bankrate
3,5 “5 ways a 0% APR credit card could actually hurt your credit,” Bankrate
6 “Can You Make Purchases on a Balance Transfer Credit Card?,” Experian
7,8 “How Do Intro 0% APR Credit Cards Work?,” Experian
9 “What Is Deferred Interest?,”Experian
10 “7 things you didn’t know about 0% APR cards,” Bankrate
Allan Halcrow is a freelance writer concentrating in business, human resources, and diversity and inclusion. He is also the author of four books on management.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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