What occurs when the zero APR period on a credit card comes to an end?

If you have a credit card balance that's accumulating interest at a high rate, you might consider opening a 0% APR credit card to help pay off that balance without incurring additional interest charges.

However, like all good things, that introductory offer won't last indefinitely. So, what takes place when your 0% APR period concludes?

What happens when the 0% APR period concludes?

Once the 0% APR introductory phase ends, your balance will start to accrue interest at the rate specified in your card's terms and conditions — with current average credit card interest rates exceeding 20%, this can have a significant impact.

To prevent interest from accumulating once your 0% APR period concludes, aim to eliminate your balance before the introductory phase ends.

Even if you manage to clear your balance during the 0% APR offer period, we advise against closing the card. To support your credit score, keep the card active and ensure you pay off your balance in full each month going forward.

Ways to maintain no interest on a credit card

Naturally, life can be unpredictable, and you might not be able to pay off your balance during the 0% APR timeframe. If that happens, consider reaching out to the credit card company to request a lower interest rate. While this might not always be successful, there's no downside to asking.

If you're unable to negotiate a lower interest rate on your card, there are several alternatives to reduce the interest that accumulates on your balance.

You might consider opening a new balance transfer card or a 0% APR credit card to shift your balance over. Just keep in mind the 3-5% balance transfer fee involved.

Another option is to obtain a personal loan to settle your credit card balance, as personal loans typically offer much lower interest rates than credit cards.

Whichever method you choose, make sure you have a strategy in place to pay off the balance and avoid managing multiple lower-interest options.

In summary

Once your 0% APR promotion on your credit card concludes, any remaining balance will begin to incur interest. You can then take measures to lessen the interest charges, such as asking for a lower rate or securing a personal loan.

No matter the situation, make sure you have a strategy to tackle your debt effectively.