Balance transfer · continued
No-Interest Credit Cards
What the 0% Rate Applies To
A 0% offer does not automatically cover every kind of balance. Some cards apply the introductory rate only to new purchases, some only to balance transfers, and some to both, occasionally with different lengths for each. If you assume the promotion covers something it does not, you can end up carrying a balance at the regular rate without realizing it.
Match the offer to your purpose. If your goal is to finance a purchase interest-free, confirm the promotion covers purchases. If you want to move existing debt, confirm it covers transfers and check the transfer fee. Reading exactly which balances are covered, and for how long, keeps you from paying interest you thought you had avoided.
Beware Deferred-Interest Promotions
Some retail financing offers advertised as no interest are actually deferred-interest plans, which work very differently from a true 0% card. With deferred interest, charges accumulate quietly during the promotional period. If you pay the full balance before the deadline, you owe nothing extra. But if any balance remains when the promotion ends, you can be billed all the interest that accrued from the original purchase date, not just interest going forward.
A genuine 0% intro card only charges interest on the balance left after the promotion, and only from that moment on. A deferred-interest plan can charge retroactive interest on the entire original purchase if you fall even slightly short. Before accepting any no-interest offer, read the terms to determine which type it is, since the difference can be costly.
Advertiser disclosure: general information only, not financial advice. Confirm current terms on the issuer's official site before applying.