A 0% introductory APR offer on balance transfers means you won’t be charged interest on a balance you transfer from another credit card for a certain period of time.
Will credit cards extend 0 interest?
Introductory periods are the honeymoons of 0% interest credit cards: They’re great while they last, but they don’t last forever. An introductory period is the fixed amount of time — usually six to 18 months — that a credit card issuer doesn’t charge interest.
How do 0 interest credit cards work?
When a credit card provides 0% APR it means you don’t have to pay interest on purchases charged to it for some specified amount of time—usually between 12 and 21 months. Once a 0% APR period runs out, the card’s regular ongoing APR will take over. A 0% interest rate is not always well advertised by a card issuer.
How can I avoid interest on my credit card?
The best way to avoid paying interest on your credit card is to pay off the balance in full every month. You can also avoid other fees, such as late charges, by paying your credit card bill on time.
Why do credit card companies offer 0 APR?
Credit card companies generally make money off of fees and interest. But there are three main reasons why banks and credit unions offer 0% APR credit cards: To entice new customers. Zero percent intro rates are eye-catching, and banks can market their other products to new cardholders in order to make money.