An introductory APR is a low promotional interest rate that credit card companies often give new customers for a set number of months after they open an account. Some credit cards offer introductory APRs on purchases, balance transfers or both. Account management.

What is an intro APR for credit cards?

Annual percentage rate (APR) refers to the interest rate—stated as a yearly rate—that credit card companies charge if you carry a balance. And the definition of introductory APR is a lower-than-usual APR that you get for a set period of time when you open an account.

What is the introductory APR and how long does it last?

Usually, the introductory period lasts between 12 and 18 months. Once the introductory APR period is up, the interest rate will revert to the standard APR you agreed to in your card agreement.

Why do credit card companies make 0% APR offers to cardholders?

Credit card companies generally make money off of fees and interest. But there are three main reasons why banks and credit unions offer 0% APR credit cards: To entice new customers. Zero percent intro rates are eye-catching, and banks can market their other products to new cardholders in order to make money.

What happens when 0 on purchases ends?

If you pay off your purchases in full before your 0 percent intro APR period expires, you won’t pay any interest on those purchases. But if there is a balance remaining on your credit card after the intro period ends, your credit card issuer will begin to charge the standard interest rate.

Are there any credit cards that offer introductory APRS?

Some credit cards offer introductory APRs on purchases, balance transfers or both. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired.

When do you get an introductory interest rate on a credit card?

Summary An introductory APR is a low promotional interest rate that credit card companies often give new customers for a set number of months after they open an account. Some credit cards offer introductory APRs on purchases, balance transfers or both.

What is an intro APR and how does it work?

Credit Cards » News & Advice » Account management » What is an intro APR and how does it work? What is an intro APR and how does it work? An introductory APR is a low promotional interest rate that credit card companies often give new customers for a set number of months after they open an account.

Do you have to pay interest on 0% intro Apr credit card?

Even if a card offers a 0% intro APR, you may still have to pay interest on some things. For example, if your 0% intro APR offer was for balance transfers only, then any new purchases on your card may be charged interest unless you pay off your balance in full each month by the due date.