Learn About the Perks of Cards with 0% Intro APR

Introductory periods usually give new credit cardholders a 0% annual percentage rate (APR) on transactions made during this period. Depending on the card, this special interest rate will apply to purchases, transferred balances, or both.

If you’re searching for a credit card, it can be an exciting offer to not have to pay interest on transactions for the first few weeks or months of using the card.


But before you apply, make sure you fully understand how this deal works by considering how you plan to use the card to maximize its benefits and avoid financial difficulties. Continue reading to learn everything you need to know about 0% introductory APR offers.

Learn About the Perks of Cards with 0% Intro APR
Image source: CNBC

Cards with 0% Intro APR

Most cards have an introductory rate of 0% APR which 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. When the introductory period comes to an end, you’ll pay the standard interest rate outlined in your card’s terms and conditions.


While it can be very useful to have a credit card with 0% APR, be mindful that the end of the intro phase brings a major shift to the interest rate of the card. Thus, how you use the card will require a shift also, and can result in financial issues if you’re not careful.

How Does the Introductory Period Work?

As soon as the account is issued, the introductory period starts. For example, if your new card offers six months with 0% APR and the credit card was given to you on January 1, you have until July 1 to eliminate the balance on the card or make transactions without imposing any financing fees.

This doesn’t indicate though that the introductory rate for the advertised months is guaranteed. As a cardholder, you must handle the account in compliance with the terms and conditions set out by the issuer.


This means you must make at least the minimum payment by the statement due date. If you don’t, the contract is null which means your introductory offer could be revoked and you will be charged the highest APR by the issuer.

Learn About the Perks of Cards with 0% Intro APR
Image source: Forbes

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 of rewards or cash back is an extra value.

Most issuers, after spending a fixed amount, send you bonus cashback within three months or 90 days of setting up an account. This can be paid in ten of thousands of points or in hundreds of dollars in cash back, depending on the type of reward system offered.


The most obvious benefit of an introductory 0% interest rate is the money it will save you in interest costs.

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, the former total interest of $760 will become $0. This is a huge amount of savings that can help people out of debt more quickly.

In this instance, a balance transfer fee of a percentage of the amount transferred would be applied, however it typically ranges from 3% to 10% depending on the card issuer. This is still a savings of 12% to 19% compared to the prior 22% APR card.

Final Words

Before applying, thoroughly analyze the terms and conditions when contemplating 0% intro APR credit card deals. You should be fully aware of what the promotional duration is and the rules of the card required to keep the offer valid.

A 0% intro offer can be a great opportunity to gain cashback and help save money, but to be effective, you should use cards responsibly.