0% Intro APR on Purchases: A Comprehensive Guide
What is 0% Intro APR on Purchases?
A 0% intro APR on purchases is a promotional interest rate offered by credit card issuers that allows cardholders to make purchases without incurring interest charges for a specified period. This period can range from 6 to 21 months, depending on the credit card issuer and the specific product.
How Does 0% Intro APR on Purchases Work?
When you apply for a credit card with a 0% intro APR on purchases, you'll typically be eligible for the promotional rate for a certain number of months. During this time, you can make purchases without accruing interest charges. This means you can buy what you need without worrying about interest rates adding up.
Here's an example:
- Let's say you apply for a credit card with a 0% intro APR on purchases for 12 months.
- You make a purchase of $1,000 during the first month.
- You'll have 12 months to pay off the $1,000 without incurring any interest charges.
Benefits of 0% Intro APR on Purchases
- Save money on interest: With a 0% intro APR on purchases, you can avoid paying interest charges on your purchases for a specified period, which can save you a significant amount of money.
- Flexibility: A 0% intro APR on purchases provides flexibility to make purchases without worrying about the immediate financial burden.
- Pay off debt: You can use a 0% intro APR on purchases to pay off high-interest debt or to finance a large purchase without incurring interest charges.
Things to Consider
- Regular APR: After the promotional period ends, the regular APR will apply to your outstanding balance. Make sure you know what the regular APR is and plan to pay off your balance before the promotional period ends.
- Fees: Some credit cards with 0% intro APR on purchases may charge fees, such as annual fees or foreign transaction fees. Make sure you understand all the fees associated with the credit card.
- Credit score: You'll typically need a good or excellent credit score to qualify for a credit card with a 0% intro APR on purchases.
Best Credit Cards with 0% Intro APR on Purchases
- Citi Simplicity Card: 21-month 0% intro APR on purchases and balance transfers
- Bank of America Cash Rewards credit card: 12-month 0% intro APR on purchases and balance transfers
- Chase Freedom Unlimited: 15-month 0% intro APR on purchases and balance transfers
Conclusion
A 0% intro APR on purchases can be a valuable tool for managing your finances and making purchases without incurring interest charges. However, it's essential to understand the terms and conditions, including the regular APR, fees, and credit score requirements. By doing so, you can make the most of this promotional offer and save money on interest charges.
