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Introductory credit card rates are a perk issuers offer to new cardholders, usually to incentivize opening an account and using it to make purchases. The temporary rate—often a 0% annual percentage rate (APR)—may apply to purchases you make with the card or balances you transfer to the card. Using promotional rates could help you save money, but you'll want to understand the fine print first.
What Is a 0% Introductory APR Offer?
There are a few important parts to every introductory APR offer:
- The promotional rate: The promotional rate isn't always 0%. But if you can, look for a 0% APR offer to avoid interest altogether for a while.
- The promotional period: Introductory rates can last for months, and the exact length of time will depend on your offer. When you compare offers, make sure this is a factor you consider. Your remaining balances will start to accrue interest once the promotional period ends.
- Qualifying transactions: A promotional 0% APR will generally only apply to certain transactions, such as purchases or balance transfers. If you use the card for a different type of transaction, such as a cash advance, that may still accrue interest.
How Your Monthly Statement Cycle Works
An introductory rate will lower (or bring down to zero) your interest charges, but it doesn't change how your monthly statement cycle works. You'll still need to make at least the minimum payment each month, or else face consequences.
An important thing to consider with any card that has a promotional rate is how and when interest accrues. Your new credit card may, for instance, have a promotional 0% purchase APR that applies when you buy things, but no such relief for interest charges on balances you transfer to the card. In this example, you won't be charged interest on your purchases until the end of the introductory rate, but any balance amount you transfer will immediately still start to accrue interest.
The opposite can happen if you open a balance transfer card that offers a promotional 0% APR on balance transfers but not on purchases. Unless you pay off the entire balance (from both the purchases and transfers) in full, you may lose the grace period on your account. As a result, your purchases can start to accrue interest daily.
When you make a payment, the credit card company may apply the minimum payment amount to the balance with the lowest APR, which could still leave you with the interest-accruing purchase balance. If you pay more than the minimum, the amount above the minimum gets applied to the higher-rate balance.
Some cards offer promotional 0% APRs on both purchases and balance transfers, which can help you avoid these situations.
How to Save Money With Introductory Credit Card Rates
Introductory 0% APR offers can save you money in several ways.
You could open a card with a promotional 0% purchase APR, use it for large purchases and pay off the balance during the promotional period without accruing interest. It may even be a better option than a personal loan if you're confident you can completely pay it off before the standard rate kicks in.
If you have interest-accruing debt, transferring it to a balance transfer card that has a promotional 0% rate will stop interest charges temporarily and help you pay off the debt sooner. Some cards have a balance transfer fee (often 3% to 5% of the amount you transfer), but the transferred balances won't accrue interest during the promotional period. As a result, a larger portion of your payment can go toward paying down the principal balance.
Best 0% Intro APR Credit Cards
If you're only using the card for purchases, you may want to look for a card that offers a 0% purchase APR with a long promotional period. For balance transfer offers, a lengthy promotional period can be important and try to find an offer that has a low balance transfer fee. Here are a few top picks from the Experian CreditMatchTM marketplace:
Citi® Double Cash Card - 18 month BT offer
Citi® Double Cash Card - 18 month BT offerApply
on Citi Credit Cards's website
13.99% - 23.99% (Variable)
Intro APR: 0% for 18 months on Balance Transfers
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
- To earn cash back, pay at least the minimum due on time.
- Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
- Balance Transfers do not earn cash back.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
- The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
If you want to focus on paying down your balance now and having a useful rewards card for after, the Citi® Double Cash Card - 18 month BT offer could be a good fit. There's no annual fee, and new cardholders can get an 18-month 0% APR introductory rate on balance transfers—a 3% ($5 minimum) balance transfer fee applies. A 13.99% to 23.99% variable APR will apply after the end of the introductory period. While you won't receive an introductory rate on purchases, you can focus on paying off the balances first. After that, start using the card for purchases, and you can earn up to 2% cash back.
Chase Freedom Unlimited®
Chase Freedom Unlimited®Apply
on Chase's website
14.99% - 23.74% Variable
Intro APR: 0% Intro APR on Purchases for 15 months
3% cash back on Dining
1.5% cash back on All Other Purchases
Intro Bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
- Earn unlimited 1.5% cash back on all other purchases.
- Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1.5% on all other purchases.
- No annual fee.
- 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
- No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.
The Chase Freedom Unlimited® doesn't have an annual fee, offers a flat-rate 1.5% cash back on purchases, and gives new cardholders a 15-month introductory 0% APR on purchases. After the introductory period is up, a 14.99% to 23.74% variable APR applies to purchases. It could be a good option if you plan on using the card for purchases, as you can receive a $200 cash back bonus if you make $500 worth of purchases within 3 months of opening your account.
Citi® Diamond Preferred® Card
Citi® Diamond Preferred® CardApply
on Citi Credit Cards's website
14.74% - 24.74% (Variable)
Intro APR: 0% for 18 months on Purchases and Balance Transfers
- 0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater
- Get free access to your FICO® Score online
- With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more
- Shop with confidence knowing that you have dependable protection benefits, including $0 Liability on Unauthorized Purchases and Citi® Identity Theft Solutions
- The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion
While some cards may offer a long introductory period on either balance transfers or purchases, the Citi® Diamond Preferred® Card offers a long introductory period on both. The 18-month 0% introductory APR period for balance transfers is one of the longest available, but only applies to balances transferred within four months of account opening. Once the introductory period ends, any remaining balance will be charged the standard APR of 14.74% - 24.74% variable. While this card charges a 3% balance transfer fee ($5 minimum), it may be worthwhile if you want to maximize the window to pay back your balance transfers. This card does not offer rewards, but offers 18 months of introductory 0% APR for purchases as well before the ongoing APR of 14.74% to 24.74% variable applies.
Keep Track of Your 0% APR Offers
While an introductory 0% APR promotion can help you save money, you'll still have to pay off the balance if you want to avoid interest. Figure out how much you'll need to pay each month to pay off the balance before your promotion ends, and keep track of your progress as you go. You may even want to budget to pay off the balance a few months early to give yourself wiggle room in case you fall off track.