Definition
A promotional interest rate, often 0%, that a credit card applies to purchases or balance transfers for a set number of months before the regular APR begins. Any balance left when the window closes accrues interest at the full rate going forward. It is different from deferred interest offers, common on store cards, which charge interest retroactively from day one if any balance remains.
Why it matters
A 0% window is a free bridge if the balance dies before the deadline and an expensive trap if it does not, especially the deferred-interest kind. The regular APR that follows is the number to read before accepting the offer.
Example
A shopper puts $3,000 of furniture on a card offering 0% for 15 months. Paying $200 a month clears it with zero interest; paying $100 a month leaves $1,500 that starts compounding at the 27% regular APR in month 16.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.