Is 0% APR the same as no interest? This question is about 0% APR Credit Cards

Is 0% APR the same as no interest?

This question is about 0% APR Credit Cards

Chip Lupo, Credit Card Writer

@CLoop • 06/22/23 This answer was first published on 08/03/21 and it was last updated on 06/22/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, 0% APR is the same as no interest. A 0% APR on a credit card means you pay no interest for a certain number of months, as long as you make at least the minimum payment required by the monthly due date, and a higher regular APR takes effect when the 0% APR promotion ends.

With most credit cards, the interest rate that takes effect after a 0% APR ends will only apply to any balance remaining at that point, plus future balances carried from month to month. With some store credit cards, however, the regular rate will retroactively apply to the original purchase amount if you don’t repay what you owe by the end of the 0% promo period.

Do 0% APR credit cards hurt your credit?

A 0% APR credit card won’t hurt your credit score more than other types of credit cards would. Opening a new credit card – whether it’s a 0% APR card or a rewards card, for example – will cause a small credit-score drop, due to the hard inquiry required by most credit card companies when evaluating an application. A 0% APR card won’t hurt your credit simply by existing on your credit report, though, assuming...

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What does 0% APR mean on a credit card?

A 0% APR means that you pay no interest on new purchases, balance transfers or both for a certain period of time after you open the credit card account. The best 0% APR credit cards on the market currently give 15-21 months without interest. The average 0% APR intro period is about 12 months for cards offering 0% on purchases, according to WalletHub’s Credit Card Landscape Report, and around 13 months for the average card with 0% on transfers.

A 0% APR...

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Can you get 0% APR on a credit card?

Yes, you can get a credit card with 0% introductory APR on purchases, balance transfers or both for a certain period of time, usually 6 to 24 months. These 0% introductory interest rates are usually reserved for new applicants with good credit or better (700+ credit score).

Credit card issuers will sometimes extend 0% APR offers to long-time cardholders through a targeted offer. Without a special offer, you’ll have to apply for a new...

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