 TITLE: How Does a 0% APR Offer Impact Your Credit Scores? CONTENT: Lenders and credit card issuers may offer you 0% APR to entice you to take out a loan, use a credit card or transfer balances to a credit card. Generally, the 0% APR is a promotional rate that only lasts a certain amount of time. Once the promotional period ends, any remaining balance will start to accrue interest based on the loan's or card's standard interest rate.\n### Credit Cards With 0% APR\nIf you get a 0% APR offer, it's probably part of a promotion for new cardholders, but sometimes you'll get a 0% APR offer on one of your current cards.\nIt can be helpful to think of your credit card as having different balance categories, each with its own interest rate and APR. For example, your purchases, balance transfers and cash advances could—and probably do—all have different interest rates.\nSome cards offer a promotional 0% APR on both purchases and balance transfers. With others, you may receive a 0% APR on purchases or balance transfers—but not both. As a result, your purchases could accrue interest even if your transferred balances don't (or vice versa).\nThe 0% APR offer means the balance won't accrue interest during the promotional period. But once that period ends, the balance will start accruing interest at your standard rate.\n### Loans With 0% APR\nMost types of loans won't offer 0% APR, but you may see 0% APR offers on auto loans from dealerships. An auto loan may be one of the largest loans you take out, perhaps behind a mortgage or student loans, so the 0% APR could save you a significant amount of money.\nHowever, don't assume the 0% APR offer will save you more money than alternative incentives, such as a cash rebate from the dealership. Also, know that these offers may only be available to applicants with excellent credit and only if you're buying certain vehicles.\nWith 0% APR auto loans, you'll make monthly payments and pay off the loan without paying any interest. However, the 0% APR offer may only be available for certain loan terms, such as 36 or 48 months. This can lead to a higher monthly payment than you'd have with a 60- or 72-month term, which might make the loan too expensive even if you don't have to pay interest. END