What does 0% APR on purchases mean?

The full form of APR is Annual percentage rate it is the rate of interest that the borrower will pay on the loan amount within the fixed time period. It is an offer provided by the credit card company to facilitate people in their monthly payment especially for the persons who are unable to make their payments in time. The credit card companies make money by charging a rate of interest on the unpaid amount after a fixed period.

Offers provided by APR contains various stipulations; for instance, if someone makes a late monthly payment it will be adjusted with the regular APR when the promo expires, which means APR will go back to the agreed amount.

There are persons who will be unable to meet their payment for which they will be charged with a 15% APR on the deficient amount. In that case, the company will make money from them by claiming finance charges on the deficient amount.

The credit card companies are very confident that a number of people will be unable to pay the entire amount by the specified period. People are concerned only paying their minimum amounts but one day they realize that their intro period has expired and they still have large amount to be paid.

APR does not charge any rate of interest for balance transfer that is applicable for others. Credit card companies are predicting that people will continue to use their card as it is hoped to be more useful than others.
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