What does it mean to have 0% Purchase APR?

Question

does that mean i only need to pay the minimum balance due? and i won't be charged any interest?

cuz that would be awesome.

Answer 1

Yes, that is all purchases. But is sounds like a special introductory rate, so make sure you can pay it off before the interest rate jump to a high rate like 19%. That is where they get you. Be careful and just spend what you need and within your means. P. S. minimum payment is usually is 2% of total charge. Another thing they get you is the interest charged is actually much higher then the minimum. so the interest just keep balling and your balance will increase even if you are paying on time.

Answer 2

0 Apr On Purchases

Answer 3

APR is called the Annual Percentage Rate. So with 0% it means not a bit of interest. So hang in there you can purchase and not be hurt by heavy charges as some cards like to add to. Some cards and most do not carry that low a rate so you are very lucky.

Answer 4

It means 0% of interest but usually for a certain period of time. If your payments go past the set time, then interest will be applied all the way back to the beginning in some cases. One time I bought some furniture at 0% for two years and paid it off early, I got an "interest refund" check in the mail, so there was some interest in there somewhere or how did that happen? Another time I bought a "Cub Cadet" tractor at 0% for two years. My minimum payment was set for five years, although I paid extra every month I went over the two years mark, they then applied interest to the whole damn thing. So read the fine print. I just bought a new Dodge truck at 0% for five years. That sounds like a good deal, however I gave up my rebate to do it. So now I must drive this truck for five years or I will loose money. Do the math and figure what is best for you.

Answer 5

Like Whuz said, it's only for a limited period of time. And if you're getting an account with a store, all the interest accrues if you don't pay it off totally by the time that period is up.

I bought my Mac for "0% interest for a year," but paid on the card balance monthly so it was paid off in a year. Otherwise, I'd have been charged a huge percentage rate on the entire original purchase price when the year was up. Zero interest is great if you can pay it off in the limited time. Otherwise, it's worse than useless.

Answer 6

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RE:
What does it mean to have 0% Purchase APR?
does that mean i only need to pay the minimum balance due? and i won't be charged any interest?

cuz that would be awesome.

Answer 7

That's correct. BUT, be careful if there's a time period after which full interest applies.

Also, for some major purchases (i.e. furniture stores) if you do not pay the full amount by a certain time, say 24 month, the full interest (usually 29 percent) applies to the FULL purchase price RETROACTIVELY. It's a huge rip-off.

Be sure you know the small print.

Answer 8

Yes, you are right you do not have to pay any interest. But make sure you pay the min due by the due date or they will start charging you interest.

Answer 9

No interest, but you be sure they've jacked up the price to make up the loss.

Answer 10

yea but that usually is for only so long