Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
7 Things You Didn’t Know About 0% APR Credit Cards (2025)
July 1, 2025
.webp)
.webp)
Why 0% APR Isn’t Free Money
At first glance, a 0% APR credit card sounds like the ultimate hack: borrow money for free, delay payments, and glide through purchases or debt payoff without worrying about interest. But while the headline perk is appealing, these offers are often misunderstood. A 0% APR promotion comes with rules, limitations, and hidden costs that can surprise even savvy cardholders. If you treat it like free money, you risk losing the benefits and even paying more in the long run.
Think of it this way: a 0% APR card is a tool — one that can save you hundreds (or even thousands) in interest if used wisely, but one that can backfire if you miss the fine print. Below, we’ll explore seven surprising facts most people don’t realize about 0% APR cards and how you can maximize the benefits while avoiding the pitfalls.
[[ BALANCE_TRANSFER_CALCULATOR * {} ]]
1. You Still Have to Make Monthly Payments (No Interest ≠ No Payment)
A 0% intro APR does not let you skip your credit card bill. Even during a zero-interest promotion, you are required to pay at least the monthly minimum payment on time. Missing a payment can be disastrous – not only could you incur late fees, but your 0% APR deal might be canceled immediately, causing your rate to jump to the regular (often high) APR. The good news is that with no interest accruing, every dollar of your payment goes toward the principal, helping you chip away at your debt faster. Set up autopay reminders to ensure you never jeopardize your interest-free period.
2. 0% APR May Only Apply to Certain Transactions (Purchases vs. Balance Transfers)
Not all “0% APR” offers are created equal. Some intro 0% APR deals apply only to new purchases, others only to balance transfers, and a few cover both – sometimes for different lengths of time. For example, a card might offer 0% APR on balance transfers for 18 months but no intro APR on purchases. If you mistakenly make new purchases on a card whose 0% APR is only for transferred debt, you’ll be charged interest on those purchases right away. Always read the fine print to see what your 0% promo covers.
3. One Late Payment Can Nullify Your 0% APR Offer
0% APR isn’t a free pass to slack on due dates. On the contrary, paying late even once can nullify your intro rate. Card issuers often specify that if you miss or are late on a payment, the promotional 0% APR ends immediately, and your balance jumps to the regular ongoing APR (which could be 20%+ overnight). You’ll also likely get hit with a late fee and possibly a penalty APR on future purchases. Moreover, a late payment hurts your credit – payment history makes up about 35% of your FICO score.
4. Balance Transfers Aren’t Free (3–5% Fee Is Common)
Transferring your existing debt to a 0% APR card can save you a ton in interest – but it isn’t completely free. Most cards charge a balance transfer fee, typically 3%–5% of the amount you move. For example, shifting a $10,000 balance with a 3% fee would add $300 to your new card’s balance. That’s a one-time cost in exchange for no interest for the promo period. Often, the interest you save outweighs the fee, but you should do the math to be sure.
5. Your Credit Limit Might Not Be High Enough
Getting a new 0% APR card doesn’t guarantee you can transfer all your debt or cover a huge purchase – it depends on the credit limit you’re approved for. Banks determine your credit line based on your creditworthiness. You won’t know your limit until after approval. If, say, you have $15,000 in debt but the issuer grants only a $10,000 limit, you can’t transfer the full balance in one go. Plan accordingly and always have a backup strategy.
6. The 0% Intro Period Is Limited – Have an Exit Strategy
A 0% APR offer doesn’t last forever – most intro APR periods range from about 12 to 21 months. After that, any remaining balance will start accruing interest at the card’s regular ongoing APR. That means you should plan your payoff schedule from day one. Divide your balance by the number of 0% months to get a monthly payoff target and mark the end date on your calendar.
7. 0% APR Can Backfire If You’re Not Careful (Credit Impact & Overspending)
Surprise: a 0% APR card can still cost you in indirect ways. Carrying a large balance – even interest-free – can hurt your credit utilization ratio, potentially lowering your credit score. It’s generally recommended to keep your usage under ~30% of your limit. Also, be wary of overspending. Some 0% APR cards also dangle rewards like cash back or points while you enjoy no interest. That can tempt you to charge more than you planned, undermining your debt payoff goals.
FAQ: 0% APR Credit Card Questions, Answered
Do I have to pay the minimum during a 0% APR period?
Yes. A 0% APR promotion means no interest, but you still must make at least the minimum payment each month on time.
Will I be charged interest after the 0% APR period ends?
Yes. Once the intro 0% period expires, any remaining balance will begin accruing interest at the card’s regular APR.
Do I need good credit to get a 0% APR credit card?
Yes. Most require good to excellent credit (typically FICO 670+) to qualify.
Can a 0% APR credit card hurt my credit score?
Yes, indirectly. Carrying a large balance increases your utilization ratio, which can lower your score until paid down.
Can I get more than one 0% APR card at the same time?
Yes, it’s possible, but depends on your credit profile and each bank’s rules.
Conclusion: Leverage 0% APR Wisely (and How Kudos Can Help)
A 0% APR credit card can be a powerful tool – whether you’re consolidating debt or financing a big purchase interest-free. The key is to know the fine print and plan ahead. By understanding these seven lesser-known facts, you can avoid common traps and truly maximize your savings.
With Kudos, you don’t have to guess. Kudos helps you compare 0% APR offers, find hidden perks, and calculate your savings with its Balance Transfer Calculator. It’s like having a savvy neighbor who knows credit cards guiding you toward debt-free success.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
.webp)
.webp)
.webp)
.webp)
.webp)
