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What does 0% APR mean?

March 24, 2025
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4 min read
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Editor's Note

This is a recurring post, regularly updated with new information and offers.

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.

Related: How to avoid and reduce credit card interest

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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Related: How to check your credit score for free

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.

Related: How to consolidate and pay off your debt

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.

Related: Simple rules to stay out of credit card debt

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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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

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TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.