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What does no intro APR on balance transfers mean?

What does no intro APR on balance transfers mean?

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A 0 percent intro APR is a promotion that credit card issuers offer to new cardholders. During the specified period—usually between 12 and 18 months—you won’t accrue interest on your credit card balance. Transferring a balance to a card with a 0 percent intro APR offer can be an effective debt payoff strategy.

Why is 0% APR not good for your credit?

on your credit – which can lead to a dip in your score. Plus, once your card’s 0% APR promotional period ends, the regular interest rate will kick in. And if you’re carrying a balance once the interest-free period ends, you’ll owe interest on the remaining debt which, if unpaid, can negatively affect your credit score.

Why are credit cards not offering 0 balance transfers?

Balance transfer cards typically provide up to 20 months of interest-free financing. However, due to the recent economic downturn, many financial institutions are shortening the length of their 0% APR offers or getting rid of them altogether.

What does 0% APR mean for phones?

When a credit card provides 0% APR it means you don’t have to pay interest on purchases charged to it for some specified amount of time—usually between 12 and 21 months. Once a 0% APR period runs out, the card’s regular ongoing APR will take over.

What does 0 APR mean on a phone?

A 0% APR means that you pay no interest on new purchases and/or balance transfers for a certain period of time.

Why do companies offer 0 APR?

Companies that offer zero-interest loans tout these vehicles as no-lose opportunities for borrowers. A major purchase that might otherwise require a lump-sum payment can be spread out over 12 months to several years, with 0% interest, thereby creating a more palatable cash flow situation.

Is balance transfer a good option?

But in general, a balance transfer is the most valuable choice if you need months to pay off high-interest debt and have good enough credit to qualify for a card with a 0% introductory APR on balance transfers. Such a card could save you plenty on interest, giving you an edge when paying off your balances.

What is an APR balance transfer?

A balance transfer APR is the interest rate you’ll pay on balances you transfer to a credit card. Some cards come with an introductory balance transfer APR offer that you get when you transfer credit card debt to their card from an existing credit card. This new APR is also known as the “regular balance transfer APR.”