- 0% on purchases: Lets you finance new spending interest-free for the promotional period, useful for a planned large purchase.
- 0% on balance transfers: Lets you move existing debt to the card and pay it down without interest during the promo period. See balance transfer credit cards for how transfers work, including fees.
Some cards offer 0% on both, though the promotional length can differ between the two.
What to Watch Out For
- The fee on transfers. Even at 0% APR, transfers usually carry a 3% to 5% upfront fee.
- Deferred interest. Some retail and store financing offers apply interest retroactively to the full original amount if it’s not paid off by the deadline — read the fine print carefully.
- What happens after the promo ends. Any remaining balance starts accruing interest at the regular APR, which can be high.
- Late payments can end the promo early. Some cards’ terms allow the issuer to revoke the promotional rate if you miss a payment.
How to Use a 0% APR Offer Well
- Know the exact end date of the promotional period.
- Divide your balance by the number of promo months to set a target payment.
- Set up autopay so you never miss a payment and risk losing the rate.
- Avoid adding new purchases that don’t also qualify for the 0% rate, unless you can pay them off separately.
Frequently Asked Questions
Is 0% APR really interest-free?
Yes, on the portion covered by the offer, for the length of the promotional period — but fees for balance transfers still apply.
What happens if I don’t pay off the balance before the 0% period ends?
Whatever remains starts accruing interest at the card’s regular APR, and with deferred interest offers, you could be charged retroactive interest on the full amount.
Does a 0% APR promotion affect my credit score?
Opening the card creates a hard inquiry, and using the promotional financing itself has no special effect on your score beyond normal utilization and payment history.
Can I get a 0% APR card with fair credit?
It’s less common. These offers are typically reserved for applicants with good to excellent credit, though terms vary by issuer.
Disclosure: This article is for educational purposes only and is not financial advice. Some links on this site may earn us a commission at no cost to you. Read our affiliate disclosure and full disclaimer. Card terms change often, so confirm current rates and fees with the issuer.