How Do 0% APR Balance Transfer Cards Work

Credit card offers are seen everywhere almost every day-on the tv, newspapers and on the internet. Each of these credit card offers are offering low interest, low APR or possibly 0% intro APR balance transfers. Many people are unfamiliar with the terms 0% introductory balance transfers and see only the words "0% APR" and assume they're getting a credit card with no interest charged. While part of this may be true with these 0% intro APR credit card offers, there's a lot more you need to know before applying for 0% introductory APR credit cards for personal or business credit cards.




Credit cards are offered by credit card companies and banks, which make their money off the interest you pay them, whether it's high or low interest. Obviously, they make more money off high interest credit cards but have to offer low interest, low APR or other incentives such as 0% introductory APR balance transfers or 0% intro APR to be competitive and draw in new customers. Credit card offers for personal or business credit cards with low interest or low APR will have the same interest rate for the life of the credit card, provided you abide by the stipulations on the credit card agreement. Credit card offers of cards with 0% introductory APR are not charging any interest during the introductory period, which can be anywhere from a month to over a year. Business credit cards with 0% intro APR are often used by businesses starting off as this enables them to purchase inventory on credit without paying interest.
 
Once the introductory period for the 0% introductory APR is up, the interest on these credit cards is often much higher. Business credit cards often carry large balances so it's important they understand what the interest will be when the 0% intro APR period is over. Unless 0% intro APR credit cards will have low interest or low APR after the intro period, many borrowers are better off taking regular low interest or low APR credit card offers.  Borrowers often have to pay the balances in full each month to get the 0% intro APR. If you have a 0% introductory APR balance transfer card, the 0% intro APR may just be on the balances you've transferred from other credit cards and not on new purchases. These are important things to learn before getting 0% introductory APR credit cards.
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