What does 0% APR mean?

March 24, 2025

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4 min read

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If you follow our 10 commandments of credit cards and pay off your balances in full every month, you probably don't pay much attention to your card's annual percentage rate. But life happens: Sometimes you end up carrying a balance and paying a high interest rate on it.

If this sounds like you, then you've probably considered opening a credit card with an introductory 0% APR. But what does zero APR mean, and how can it help you? Here's what you need to know.

What is 0% APR?

APR stands for "annual percentage rate," and, in the world of credit cards, it's the interest rate you're charged when you carry a credit card balance. Some credit cards offer 0% APR for an introductory period (usually between six months and two years). This typically means that the balance on the card doesn't accrue any interest for that period.

How do I get a 0% APR offer?

Woman shopping online — ROCKAA/GETTY IMAGES

Like most credit cards, you must apply and get approved for a 0% APR credit card to take advantage of the introductory offer.

However, note that these cards generally require a good or excellent credit score for approval.

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What are the pros and cons of 0% APR?

Pros of 0% APR

Time to pay off a big purchase: Opening a credit card with a 0% APR is a good option if you know you're about to make a big purchase and will need to carry a balance on your card for a few months before paying off that purchase. The 0% APR period allows you to pay off the purchase without accruing any interest.
Option to consolidate your balances: In many instances, you can transfer a balance from another card to the 0% APR card; this allows you to pay off the balance without accruing more interest during the introductory 0% APR period. There's typically a fee for this type of transfer, but it's often much lower than the interest you're currently paying on the existing balance.

Man using a laptop and smart phone while holding a credit card — MSTUDIOIMAGES/GETTY IMAGES

Cons of 0% APR

May not apply to everything: The 0% APR may have exclusions. Check the card's fine print to ensure that it applies to the new purchase, balance transfer or cash advance you're hoping to use it for.
False sense of security: Even with 0% APR, the only way to get out of credit card debt is to make more than the minimum payments on your cards. To avoid paying interest beyond the 0% APR period, make and stick to a plan to pay the balance completely before the introductory 0% APR period ends.

Bottom line

A credit card with an introductory 0% APR allows cardholders to carry a balance for some time without accruing interest. It's a good option for those who need to make a large purchase or want to transfer a current balance from another card. However, we still recommend planning to pay your credit card balances in full as often as possible to avoid accruing credit card interest altogether.

Featured image by MORSA IMAGES/GETTY IMAGES

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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