Key takeaways
- Cards that offer a 0 percent intro APR on new purchases can be helpful for consolidating and paying off higher-interest debt or financing a large purchase, as long as you use the card responsibly.
- You’ll need to prioritize paying off what you transfer within your intro period, however. After it expires, a much higher rate applies to any balance.
- Compare 0 percent intro APR credit cards for a fit with your repayment timeline, credit score and overall financial goals.
- Don’t forget to factor in the fee of 3 percent (or higher) you’ll pay for each transfer.
Preparing for a major purchase? You could pursue short-term financing in the form of a personal loan, home equity loan or home equity line of credit. But if you can afford to pay off what you borrow in full within a year or so, a 0 percent APR credit card could be a better option. This type of card can save a lot of money you would otherwise spend on interest charges.
Learn more about how this type of credit card works — and how you might be able to use one as an interest-free loan on large purchases.
How a 0% intro credit card works
While the terms 0 percent intro APR card and balance transfer card are often used interchangeably, they’re technically different. A balance transfer card has a 0 percent intro APR period on balance transfers specifically, allowing you to transfer high-interest debt from another card and avoid interest while you pay off the transferred balance on the balance transfer card.