For a specific period of time, introductory periods usually give cardholders a 0% APR (annual percentage rate). This special interest rate will apply, depending on the card, to purchases, transferred balances, or both.
Even if you’re not searching for yet another credit card, it can be absolutely thrilling to learn new credit card deals for a 0% introductory APR. After all, for a certain period of time, it might mean you don’t have to pay interest on transactions.
Make sure you fully understand how the deal works, how you plan to use the card, and its benefits before you run off to apply for a 0% intro APR card.
Cards with 0% Intro APR
Most cards have an introductory rate of 0% and usually last between six and 18 months, although some deals are much longer. These deals are offered on newly issued credit cards only so they will not be valid on an account that you already have.
While the promotional rate is in place, little to no interest on the balance will be billed to you. You’ll be paying the standard rate when the introductory period comes to an end.
You know how useful it can be if you have a credit card with an introductory rate of 0% APR. However, one crucial part you need to be mindful of is that the end of the intro phase typically brings a major shift to the interest rate of the card.
In order to promote new card signups, card issuers provide these promotional rates. To start, they do provide a great advantage, but if you want to keep the card long-term, it is necessary to do your research.
How Does the Introductory Period Work?
As soon as the account is issued, the introductory period starts. This implies that if for six months it comes with a 0% APR and the credit card was given to you on Jan. 1, you have until July 1 to eliminate the debt or make transactions without imposing any financing fees.
This doesn’t indicate though that the introductory rate for the advertised months is guaranteed. You are obliged, as a cardholder, to handle the account in compliance with the rules set out by the issuer.
That involves sending in by the due date at least the minimum payments. If you don’t, the contract is null, and you will be charged the highest APR by the issuer.
Perks of Cards with 0% Intro APR
Here are some of the benefits of having cards with 0% intro APR.
Cashback and Rewards
Having an introductory rate card that also has a sign-up bonus is an extra value. Most issuers, after spending a fixed amount, send you a certain amount of cashback within three months or 90 days of setting up an account.
Consequently, you will not only be able to use these cards for balance transfers or transactions that you will pay with no interest added over time, but you will also gain from the process.
The most obvious benefit of an introductory interest rate is the money it will save you in interest costs, particularly when it is 0 percent.
For instance, if you transfer a balance of $6,000 from a 22% APR credit card to a 0% APR card with a 12-month introductory period (plus an approximate $180 balance transfer fee of 3%), the total interest will be $760. Subtract the fee of $180 and the savings will be $580.
Before applying, thoroughly analyze the terms and conditions when contemplating 0% intro APR credit card deals. What the promotional duration is and what kind of offer you are looking for, you should know.
A 0% intro offer can be a great opportunity to gain cashback and help save, but to be effective, you should use cards responsibly.