 TITLE: How Does a 0% APR Offer Impact Your Credit Scores? CONTENT: How 0% APR Can Impact Your Credit Score\n---------------------------------------\nCredit scoring models don't consider the interest rate on your loan or credit card when calculating your scores. As a result, having a 0% APR (or 99% APR for that matter) won't directly impact your scores. However, the amount of interest that accrues on your loan could indirectly impact your scores in several ways.\n### It Could Add an Account to Your Credit Report\nIf you're opening a new account with a 0% APR offer, the impact on your scores will be the same as if you're opening any new credit account. The new account could add to the mix of types of accounts in your credit reports, which could help your score. However, the hard inquiry noted on your credit report when the lender pulls your credit as well as the decrease in the average age of your accounts may lower your scores, though usually only temporarily.\nOverall, if you're opening a new account and making on-time payments, the account may help improve your scores over time.\n### It Could Affect Your Utilization Rate\nOne of the most important credit scoring factors is your credit utilization ratio, or the percentage of available credit on revolving credit accounts that you're currently using. Opening a new card will increase your available credit, which typically lowers your utilization rate and helps your scores.\nHowever, if you have a 0% APR offer on a credit card, you may be more inclined to let your balance grow. Your utilization rate will then increase, which might hurt your scores. In general, aim to keep your utilization rate under 30% to avoid negatively affecting your scores. For the best credit scores, try for a utilization rate of 6% or lower.\n### It Could Lead to Accidental Late Payments\nSome people may mistakenly believe that a 0% APR loan means they don't have a monthly payment. However, you'll still need to make your monthly loan payment or minimum credit card payment to stay current. Missing a payment by 30 or more days could lead to a late payment on your credit reports, which could hurt your scores. Payment history is the most important factor in your credit scores, so staying up to date on payments is important. END