What happens when your 0% intro APR period ends?

Credit cards offering a 0 percent introductory APR are especially useful if you need to pay off old debt, fund a big purchase or cover a few months of expenses interest-free. Current credit card interest rates average more than 20 percent, meaning that applying for a credit card with a promotional 0 percent interest rate could save you a lot of money.

But what happens when the promotional APR ends? With your credit card promotional rate ending, you could find yourself stuck with higher interest rates and a balance you aren’t prepared to pay off.

Here’s what to know about 0 percent interest credit cards, including how to find out when your 0 percent APR offer ends and how to avoid paying interest after your promotional period is over.

What happens when your 0% intro APR period ends?

Depending on your card, your 0 percent promotional period can last from just a few months to 18 months or more. After the promotional period expires, you’ll start accruing interest on any unpaid balances. That includes balances you charged or transferred to the credit card during the promotional APR period — not just new charges.

It’s crucial to calculate how much of your balance you can pay off before the intro APR period ends, so be sure you know your promotional APR ending date and the standard variable APR you’ll pay after, so you can avoid having a large balance on a credit card that’s about to start charging interest.

What’s your new APR when your intro period ends?

After your introductory interest rate ends, your APR reverts to a standard variable APR rate determined by your lender. You can find your credit card’s standard interest rate, as well as your intro APR length, by reviewing your credit card statement.

If you’re having trouble finding the end date for your intro APR on your credit card statement, check your online account or mobile app for information. You can also call the number on the back of your credit card and ask a customer service representative to check your account and confirm the promotional period expiration date.

In some cases, missing a credit card payment or making a late payment can cause your 0 percent intro APR period to end early. Some credit card issuers revoke the promotional interest rate as a penalty for late or missed payments, so read your credit card’s fine print and find out whether a late payment could cost you your introductory interest rate.

Know the definitions: 0% intro APR offers vs. balance transfers

The main difference between a balance transfer and a 0 percent intro APR period is that a balance transfer involves moving existing debt from one card to another to take advantage of lower interest rates, while a 0 percent intro APR period refers to a promotional period during which no interest is charged on purchases or transfers made with the card.

If your credit card offers a 0 percent intro APR on purchases only, any balance transfers you initiate on the card will accrue interest. Likewise, if your credit card offers a 0 percent intro APR on balance transfers only, any purchases you make on the card will accrue interest. Luckily, many of the best cards with 0 percent APR periods offer an intro APR on both purchases and balance transfers.

It’s usually best to stick to one type of offer or the other. If your focus is to pay down debt, avoid charging new purchases on your card, as you may end up simply replacing your old debt with new debt. On the other hand, a 0 percent APR on purchases is great for paying off a large purchase over time, but loading up the same card with a transferred balance could limit your spending power and drive up your credit utilization, which can be bad for your credit score.

Intro APR on both purchases and balance transfers

If your credit card offers a 0 percent introductory APR on purchases and balance transfers, you won’t be charged interest on purchases or transferred balances until your promotional APR period ends.

But you’ll have to read your card’s fine print carefully — your promotional APR period might be different for purchases than it is for balance transfers. For example, your card could offer 18 months of zero-interest for balance transfers but only six months of zero-interest for purchases.

What to do if you still have a balance after your intro APR period

If you still have a balance after your intro APR period, don’t worry — you have options. Here are some steps you can take:

• Pay off your outstanding balance as quickly as possible

  It sounds obvious, but see if there’s room in your budget to pay off your remaining balance before your next credit card billing cycle ends (or at least over the next few months) to minimize the interest charged.

• Negotiate a lower interest rate

  Call your credit card issuer and request a lower interest rate. You may be more likely to get a lower rate if you have a positive credit history (no late payments, for example) and have kept your credit account in good standing for years.

• Consider a balance transfer

  Transferring your balance to another card can give you a fresh 0 percent intro APR period during which you can continue to pay down your balance interest-free. Just take care not to fall into a credit card debt cycle.

• Try credit card forbearance

  If you’re experiencing financial hardship that is making it difficult to pay down your credit card balance, you can request entry into a credit card forbearance program. Some hardship programs offer reduced interest rates, while others allow you to defer your payments for a set period.

Can you extend your promotional APR period?

In most cases, you can’t extend your promotional APR period — after all, your card issuer has already waited to start collecting interest on your balance. Even though extending the promotional period isn’t an option, you might be offered the chance for a second promotional period. But for the second time around, you’ll likely get a low-interest offer instead of a zero-interest offer. These low-interest promotional offers are typically sent to well-qualified borrowers with other high-interest debt.

You’ll usually get these offers through your card issuer’s online portal or by mail. In this case, the low-interest offer would only apply to any new balances you decide to transfer to your existing balance transfer card after the 0 percent APR period ends. That means any remaining balance from your previous transfer would still be subject to the standard APR.

Should you cancel your credit card when the 0% intro APR ends?

Unless you’re paying an annual fee, keeping the account open is probably more beneficial than closing it. That’s because it contributes positively to two of the most critical factors in your credit score: credit utilization and length of credit history.

Closing a credit card could reduce your available credit and eventually shorten your length of credit history — both of which could temporarily lower your credit score.

Depending on the card, you might even want to continue using it as an everyday spending card. Some of the best balance transfer credit cards also offer cash back rewards, making them a valuable addition to your wallet even after the 0 percent intro APR expires.

The bottom line

When your intro APR ends, your credit card’s regular APR will kick in on any remaining and new balances. Knowing when your promotional period ends can help you pay off your balance beforehand and keep you from being surprised by mounting interest on a residual balance.