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If a credit card says you get something like, "0% APR for the first 12 months," does that mean you can get by with paying only minimum payments and not have any accrued interest build up?

If so, wouldn't it be better if they just advertised it as being of no interest?

If not, what's the difference between 0% APR and whether or not you pay interest?

marked as duplicate by mhoran_psprep, JoeTaxpayer Nov 22 '16 at 21:30

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  • The law requires that they have the word APR and its value in their ad. – Aganju Nov 23 '16 at 11:37

Yes, 0% APR = no interest. APR = Annual Percentage Rate. As in, the lender gets an annual percentage returned to them for lending you money. This is the opposite of APY, which is Annual Percentage Yield, or the money that an investment yields.

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    APR is Annual Percentage Rate. And Yield is the actual total return in a year considering compounded earnings of the Rate. – quid Nov 22 '16 at 20:22