Glossary term
Promotional APR
A promotional APR is a temporary, reduced interest rate, often 0%, that a card issuer offers for a set period on purchases, balance transfers or both. When the promotion ends, any remaining balance is charged the card's regular APR. It can save real money if you plan to pay the balance off within the window.
Updated October 17, 2026 · Editorial Team
How Promotional APR works in practice
Federal rules require promotional periods on credit cards to last at least six months and require the issuer to disclose the rate that applies afterward. Payments above the minimum are generally applied to the highest-rate balance first, which helps if you have both promotional and regular-rate balances.
Buy a $3,000 appliance on a card with 0% for 12 months, and pay $250 a month: the balance is gone in 12 months with no interest. Pay $200 instead, and $600 remains when the promotion ends. At a 24% regular APR, that leftover costs about $600 × 0.02 = $12.00 in interest in the first month alone.
Promotional APRs are different from deferred-interest offers, often seen in store financing, where interest from the start can be charged if you do not pay in full by the deadline. Divide the balance by the number of promotional months to find the payment that clears it in time.
Promotional APR: quick questions
How long do promotional APRs last?
It varies by offer. On credit cards, federal rules require at least six months, and many offers run longer.
Is 0% APR the same as deferred interest?
No. With a true 0% APR, no interest is charged during the promotion. With deferred interest, interest accrues and can be billed if you miss the payoff deadline.
Can I lose a promotional rate early?
Card agreements may allow it if you pay more than 60 days late. Paying on time each month protects the rate.
Sources
- Regulation Z (Truth in Lending), 12 CFR Part 1026 — Consumer Financial Protection Bureau. Accessed October 17, 2026.
- Credit cards — Consumer Financial Protection Bureau. Accessed October 17, 2026.
We cite primary sources: regulators, central-bank data and federal agencies. Worked examples on this page are our own calculations. See our methodology.
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