A 0% purchase credit card has an introductory or promotional interest rate of 0% on purchases for a specified period, which can vary between six and 15 months (or longer), offered to new cardholders only.
This introductory offer is quite different from a credit card’s standard interest-free days (usually either up to 44 or up to 55 days) granted in each billing cycle for cardholders who do not have a carried-over balance from the previous month. The introductory offer, while it lasts, effectively replaces the standard interest-free days by making them unnecessary.
Only the minimum repayment is necessary
During the 0% purchase introductory offer period, cardholders are still required to make the minimum monthly repayment (e.g. 2% of the balance owing), but can otherwise allow their purchases balance to grow (restricted only by the card’s credit limit) without incurring any interest charges.
Revert interest rate kicks in at the end of the offer period
Once the introductory offer period expires, the full balance accumulated from purchases made during the period will need to be repaid at once, in order to avoid paying the revert interest rate on the balance. The revert interest rate is usually the card’s ongoing interest rate applied to purchases balances carried over from the previous month.