A 0% APR credit card can be a helpful financial tool when you need to finance a large purchase or consolidate outstanding credit card balances. You can get up to 24 months of zero interest, making it easier to make payments over a longer period without going into debt.
But these types of credit cards are really only best utilized when you have a payment plan in place so that when the introductory 0% APR period ends, you're not then collecting interest on a large balance. Here's more on what happens when your interest-free period ends, plus how to manage a possible ongoing balance when that happens.
What happens when your 0% APR period ends?
Whether you're using a 0% APR card that offers an interest-free period on new purchases, balance transfers or both, that grace period doesn't last forever. Some credit cards offer introductory 0% APR periods for as little as 12 months while some offer periods for as long as two years.
If you're looking for a card with a shorter 0% APR window, the Wells Fargo Active Cash® Card offers a 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5 and earns unlimited 2% cash rewards on purchases, plus the card has a $0 annual fee.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High flat-rate return on purchases
- Intro-APR for purchases and qualifying balance transfers for a year
- No annual fee
- Cell phone protection
- Has a foreign transaction fee
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
If you'd prefer one that gives you a bit more time, the U.S. Bank Shield™ Visa® Card has an intro 0% APR on purchases and eligible balance transfers that's nearly double the length, lasting 21 billing cycles (after, 16.99 - 27.99% variable APR). The card comes with 4% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Center and a $20 annual statement credit for 11 consecutive months of purchases.
- Best-in-class intro-APR offers for purchases and balance transfers
- No annual fee
- Annual statement credit
- Cell phone protection
- Rewards limited to eligible travel purchases made through the U.S. Bank Rewards Center
- No welcome bonus
- Has a foreign transaction fee
- No intro balance transfer fee
Regardless of the time frame, once your APR period ends, you'll begin accruing interest on any unpaid balance at the rate listed on your card's agreement terms. (You can often find this rate via your online account or contact your issuer directly.)
This is why we always suggest having a specific plan in place to pay off your balance by the time the 0% APR period ends. One example is dividing how much you owe over the number of months in the APR period, so you know how much to pay each month to get to zero before interest kicks in. Otherwise, you'll be stuck with a ballooning balance now due that's going to start collecting double-digit interest.
And don't forget that even with a 0% APR card, you still have to make monthly minimum payments at the very least. An issuer can end the interest-free period if you miss a credit card payment.
If you still have a balance
So, you weren't able to tackle the entire balance by the time your 0% APR period ended; now what?
Pay off the remaining balance quickly
While this seems like the obvious answer, with how high credit card interest rates can be, this type of debt should almost always be your priority. This is sometimes referred to as the avalanche method, which entails paying off the debt that has the highest APR first.
Look into debt relief
If you're at a point where you're considering outside help, exploring some debt relief companies can at least provide you with some more information. These companies negotiate with your creditors to help get your balance lowered, but the negotiation can come with some hoops you have to jump through, and success isn't always guaranteed.
FAQs
Can you extend a 0% APR period?
While you can request an extension via your financial institution, it's unlikely that this would be approved, but there are some credit card fees you might be able to waive.
Should you keep the card after the 0% APR period ends?
Yes, it's generally recommended to keep the credit card open to help boost your available credit and credit history, with an exception being for high-annual-fee cards that you don't intend to use.
How long does a 0% APR period last?
The length of your exact 0% APR period is determined by the card you're approved for, but six to 24 months, or billing cycles, is a common range.
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* Information about the U.S. Bank Shield™ Visa® Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
