When you apply for a credit card it says 0% APR, but what does 4.99% with application intro balance trans APR?

Question

please explain throughly...

Answer 1

it means, if you have no transfers from another card, then you have zero percent apr, I feel this means zero for a limited time;

but if you have a charge card with a high interest rate, and you would benefit from this 4.99, then you can have this low rate card to payoff the high rate card, either way its can be a good deal.  lets say you have a card with 24% apr, then you would take advantage of this 4.99%. and transfer balance owed to the lower rated charge card.

Answer 2

Cards often charge a different rate for balance transfers than they do for purchases, that probably explins what is happening here with your card.

As a side note:  Credit card companies may apply your payments to the parts of your balance that are paying the lowest rates first, leaving higher interest rates charged on the remaining part.  For example, you transfer a $2000 balance from another card, that costs you 18.9%, but your purchase rate is only 7.9%.  You charge $500 on the card, intending to pay it off over two months.  You send them a $250 payment, and they will apply it to the 7.9% part ($500) while the big part keeps making them 18.9%.  They do this to make more money.

With your card, this won't be a big problem until your introductory rates expire, then you could find yourself in a large hole.  Read the paperwork carefully so you don't get hosed six months down the line.