How to Leverage Credit: 6 Ways to Use a 0% Intro APR Credit Card

You’ve probably seen 0% intro APR credit cards advertised as a smart way to manage debt. But these cards aren’t helpful only if you carry a balance. They also can be a savvy tool to help you build wealth, invest in yourself and save money.

These cards offer a temporary break from interest charges, giving you time to pay off purchases or consolidate balances without added cost—if you use them wisely. During the 0% intro APR period, you don’t have to pay any interest on your balance. That means you can keep your cash in a savings or investment account where it earns money instead of using it on credit card payments. You can handle big expenses without using up your emergency fund and take advantage of deals that require upfront payments.

Let’s dive deeper into when and how to leverage credit in your favor using a 0% intro APR credit card.

Definitions to know

Make sure you understand these terms before you open a new credit card to take advantage of a promotional 0% interest rate:

• “Balance transfer” means moving debt from one credit card to another. It’s often used to take advantage of a lower interest rate, consolidate multiple existing credit card balances and simplify payments. Some card issuers do charge a balance transfer fee, typically between 3% and 5% of the transferred balance.
• “0% intro APR on balance transfers” means you can transfer balances from your existing credit cards to a new one for a limited time. You’d carry that balance and pay the monthly minimum without paying interest for a specified introductory period—usually 12-21 months. After that period ends, the standard variable APR (annual percentage rate) kicks in on any remaining transferred balance and new purchases.
• “0% intro APR on purchases” means you won’t pay interest on new purchases with your card for the introductory period—usually 6-21 months. Any remaining balance after the introductory period will start to accrue interest at your card’s regular interest rate.
• “Passive income” means earning money without needing to dedicate time and effort to it every day. Interest from savings accounts or dividends from investments are examples of passive income. It’s the money you make when your money works for you. This can help you build long-term financial stability.

6 clever ways to use a 0% intro APR credit card

A 0% intro APR card can give you the chance to leverage credit without paying interest. Here are 6 ways to use them to give yourself opportunities to build wealth, make big purchases, strengthen your finances and achieve your financial goals.

1. Invest cash in high-yield accounts

Carrying a balance can open up new opportunities to let your money make money. If you’re comfortable with your budget and you pay off your credit cards every month, you could use these zero-interest introductory offers as wealth-building tools. 

Let’s say you’ve been planning some big home renovations for a while. You’ve shopped around, gathered pricing quotes and stashed away enough money so you can cover the costs without carrying a balance on your credit card. Once the charges hit your account, you’d likely plan to pay off the full balance with the cash you’ve saved up. 

Another option is to let your savings do more for you. Instead of paying off the credit card balance right away, you could move it to a new card with a 0% intro APR offer on balance transfers. During the promotional period, you can invest the cash you have on hand in a high-yield savings account or certificate to help generate passive income. For example, $25,000 in a 12-month certificate at 4% APR would earn about $1,000.

With this strategy, you’re making extra money while you’re getting temporary financing at no cost to you—as long as you pay off your balance before the card’s introductory period ends.

2. Finance large purchases

Using a 0% intro APR credit card gives you more options for financing big-ticket items. Unlike a HELOC or home equity loan, a credit card doesn’t require collateral. And, unlike a personal loan, your rate isn’t dependent on factors outside of your control during the promo period, like the prime rate.

Large, planned purchases—weddings, appliances, vacations and more—are perfect for a 0% intro APR card strategy. These cards can come in handy when you can’t wait to make a purchase, like covering tuition in time for fall classes or booking a popular wedding venue before someone else swoops in. A no-interest card lets you be flexible—and helps you leave your savings untouched.

3. Protect your savings

If you need to pay for an unexpected event, you could use your current credit card with a variable standard APR and then transfer that balance to a card with a 0% intro APR. This can help relieve the pressure of high monthly payments and accumulating interest. You’ll be able to keep your savings available for emergencies and keep your options open.

This strategy is especially helpful during big life transitions like moving, including due to a Permanent Change of Station (PCS). PCS moves can come with some upfront costs that can take a while to get reimbursed. You could transfer the balance on your current card to a 0% intro APR card to get a break from interest payments. Then, you can repay the debt interest-free before the intro period ends.

4. Invest in your career with classes or training

Learning new skills, or upskilling, can lead to better jobs, more money and new opportunities to grow. A 0% intro APR credit card can help you invest in skills now and pay for them as your earning power increases.

Classes and training can cost a lot and take time to pay off. If you’re a Servicemember transitioning to a civilian career, you may need to get specific certifications or credentials for your next role. 

Instead of waiting to save up for tuition or taking out loans at a higher interest rate than you’d like, you can sign up when classes open and start learning right away.

5. Cover holiday and special occasion expenses

Holiday expenses can feel like they hit all at once—gifts, travel and festive gatherings. A 0% intro APR credit card can be a gift to yourself during the holiday season. The card can give you the option to spread those costs over several months instead of rushing to pay it all when your January bill arrives.

You also can take advantage of early booking discounts for travel or shop holiday sales without waiting for your savings balance to build up. This strategy works well for military families when holiday leave coincides with PCS moves or long-distance travel to visit family back home.

6. Jump on good deals when you see them

Good deals don’t always stick around while you save up money. A 0% intro APR card allows you to take advantage of limited-time offers, clearance sales or bulk purchasing opportunities that save money in the long run on things you need.

Think of using this strategy for larger purchases during major sales events, buying in bulk to reduce costs or hiring contractors during their slower seasons. You get the benefit of saving money right away while spreading out the payments over time. 

How to use 0% intro APR cards to build wealth responsibly

These credit-leveraging strategies work best when you have:

• good credit
• a history of paying bills on time
• a steady income
• a plan to pay off the balance before the intro period ends

When the introductory rate expires, any balance will start earning interest at the card’s standard variable APR. Be sure you understand the card’s terms before you sign up.

To help keep your credit score healthy, it's important to pay close attention to your credit utilization ratio—the amount of your available credit you’re using. Experts recommend keeping your credit utilization rate below 30%—both across all your credit accounts and on each individual account.

Maintaining ideal credit utilization involves monitoring your balances, spreading out spending and even setting up automatic payments so you’ll never miss a due date.

Keep in mind that late payments can sometimes end your promotional rate period, so automating your payments can be a smart idea. Otherwise, you’d have to start paying interest on your remaining balance sooner than expected. Have a backup plan in case your situation changes and you can’t pay as planned.

Let us help make your credit work for you

Navy Federal Credit Union can help you get the most out of your spending with credit cards that range from low-intro APR offers to great rewards. See if you might prequalify for any of our cards—without affecting your credit score.

You also can check out our MakingCents educational resources on credit cards, debt management and investing. Whether you’re making a big purchase, dealing with a life change or just want to strengthen your money management plan, we’re here to help.