I applied for the card without knowing it had an introductory 0% APR. Now that’s my favorite feature

Sometimes unexpected costs arise, and they are not always small. Recently, I had to make unexpected home repairs and pay for medical expenses—things that aren’t necessarily easy to prepare for. I’m also self-employed so my income fluctuates monthly.

Having an contingency fund to tap into when unexpected expenses arise can help, but even so, a large surprise payment could disrupt your budget and potentially send you into debt. But I got a little help from a credit card feature I didn’t even know I had.

For the past year, my credit card’s 0% APR introductory offer on purchases has helped me cover these expenses without going into debt. And that wasn’t even why I originally applied for the card.

What is the introductory purchase APR?

The credit card industry is both highly profitable and highly competitive. And one way card issuers attract new customers is by offering interest-free, promotional financing on new purchases, balance transfers, or both.

Usually, when you make a new purchase, the balance will accrue interest based on the card’s annual percentage rate, or APR. However, the interest is canceled if you pay your statement in full early grace period ends on the payment due date.

But when you have a card with an introductory 0% APR, your new purchases or transferred balances (depending on your card’s offer) won’t accrue interest for a certain number of months. By law, these introductory financing periods must last at least six months, with some offers up to 21 months.

Why the Chase Freedom Unlimited’s introductory APR ended up being the card’s best feature

I had the first year Chase Freedom Unlimited®, the generous welcome offer allows me to make essentially twice as much money as I do now.

Typically, Chase Freedom Unlimited offers 1.5% cash back on all purchases, plus 3% back on restaurants and drugstores, and 5% on travel booked through Chase Travel℠. But the welcome offer when I signed up allowed me to earn an extra 1.5% cash back on everything I bought in the first year (up to $20,000 spent).

The standard offering of this card is pretty good on its own, but with essentially double points, it was a no-brainer. And since cash back from this card is earned as points that can be combined with rewards from my Chase Sapphire Reserve®this was an amazing offer.

It wasn’t until after I got the card that I realized it also came with an introductory finance offer of 0% APR on new purchases and balance transfers for 15 months from account opening (then 19.74% to 28.49% variable).

And while I didn’t need a balance transfer offer, the introductory financing for new purchases became incredibly valuable. I’d still have to make the minimum payment each month, of course, but if I carried the balance, I wouldn’t incur any interest for 15 months.

What APR can do for you

With an introductory purchase APR, you can essentially use your new card as a line of credit for virtually no cost.

When I realized I still had time to take advantage of the offer, I moved all my spending to this card to take advantage of both rewards and promotional financing. But instead of setting up my card’s automatic payment feature to pay off my statement balance in full, I did something I never would have done: I set it to make the minimum payment each month and started carrying the balance.

I didn’t do this without some planning. I made sure I had enough money saved up to be able to pay off the card in full before its introductory APR offer ended. Otherwise, the balance would start accruing interest at the card’s standard rate.

Each week I would look at my current balance and make a payment to free up enough credit to make the next week’s purchases.

This allowed me to keep much more money in my checking, savings and investment accounts during the 15 month introductory financing period. Not only did this help me earn more interest, but it also took the stress out of months where my expenses were higher than I expected.

Warning: Use this strategy with caution

If you’re new to credit cards or aren’t sticking to a strict budget, charging up to your card limit isn’t recommended, regardless of whether you have an introductory APR offer. Maxing out your credit card can tempt you to spend more than you can afford, and it also increases your spending loan utilization ratiowhich could hurt you credit score.

An introductory APR is helpful – but keep these tips in mind

As useful as these promotional financing offers are, there are a few drawbacks to be aware of.

First, you must pay off the full amount before the offer expires to avoid paying the standard interest rate on any outstanding balance. And you shouldn’t use these offers as an incentive to overspend and build up debt you can’t pay off.

You should also note that the condition will always be reported main consumer credit bureaus. While having a large outstanding balance will reduce yours credit scoreit should recover when you pay it off.

But if you are applying for a large loan, e.g residential mortgage or refinance, then you want to have as the highest possible credit scoreand avoid carrying a large balance, even if it’s not currently earning interest.

Finally, don’t forget to make the minimum payment every month. Failure to do so may cause a default interest ratewhich is far worse than the standard rate. Setting up automatic payments is an easy way to ensure that payments are made reliably.

Should You Apply For A Credit Card Just For Its Introductory Purchase APR?

Although I didn’t consider my Chase Freedom APR introductory purchase when I applied, it may be a good idea to apply for a card because it has one of these offers. When you can use a card offer like this to smooth out uneven costs and earn extra interest income from your savings, then it can potentially be worth it.

The Chase Freedom Unlimited offers competitive rewards, and the introductory financing offer was just gravy for me. But if you think an offer like this might tempt you to overspend or get you into debt, then it’s best to avoid these offers altogether.

How you can find all the features of your card

You can find the features of your credit card in your Summary of Benefits document, which you can access by logging into your account online or by calling the number on the back of your credit card. You can also check the card issuer’s landing page, which lists the card’s current features and benefits. There you can also find a link to the table with the card’s tariffs and fees, which is prescribed by law.