No, simply having a credit card with a 0% APR introductory offer typically won’t harm your credit score. However, there are two things to keep in mind:
- Credit Inquiries: When you apply for a new credit card, a hard inquiry is placed on your credit report, which can cause a temporary dip in your score. This is usually minimal and recovers quickly.
- Credit Utilization Ratio: This ratio compares your credit card balance to your credit limit. If you carry a high balance on your 0% APR card, especially as the introductory period nears its end, it can negatively impact your credit score.
Here are some tips for maintaining a good credit score when using a 0% APR credit card:
- Make on-time payments: This is the most important factor affecting your credit score.
- Pay more than the minimum amount: This will help you pay off the balance before the introductory period ends and avoid high-interest charges.
- Keep your credit utilization ratio low: Aim to keep your credit card balances below 30% of your credit limit.
By following these tips, you can take advantage of a 0% APR offer and improve your credit score at the same time.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Compare the top Excellent Credit Card Offers - CreditSoup Balance Transfer Cards