How Long Is BankAmericard's 0% Intro APR, and What Happens After?
How Long Is BankAmericard's 0% Intro APR, and What Happens After?
Learn what 21 billing cycles of 0% APR actually means, and what your rate looks like when it ends.
Written by
Holly Johnson
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
BankAmericard offers a 0% intro APR for Intro APR for 21 billing cycles for purchases on purchases and balance transfers made within the first 60 days of opening your account. After that, a variable APR of 15.24% - 26.24% applies, depending on your creditworthiness.
Not only does this card give you plenty of time to consolidate debt or pay down large purchases without interest, but its ongoing APR is also on the lower end compared to many competing cards. This means it could be a good choice if you need more time to pay off your balance after the introductory offer ends.
Key Insights
Long introductory period: The BankAmericard offers a 0% intro APR for Intro APR for 21 billing cycles for purchases, which is roughly 21 months. However, the exact end date depends on when you open your account and your billing cycle.
Balance transfer restrictions: The 0% intro APR applies to purchases right away, but balance transfers must be made within the first 60 days of account opening to qualify. A 5% balance transfer fee applies.
No penalty APR: BankAmericard doesn't charge a penalty APR if you miss a payment, but you could still face late fees and damage to your credit score.
Some transactions don't qualify: Cash advances and balance transfers from other Bank of America accounts aren't eligible for the introductory APR offer.
21 Billing Cycles Isn't Exactly 21 Months
A credit card billing cycle typically lasts for 28 to 31 days, starting when one statement closes and ending when the next one closes. Depending on when you open your account, your first billing cycle could be shorter than usual. This means your 21 billing cycles of 0% intro APR may not line up exactly with 21 calendar months.
Our advice? Check your account details or first statement to get a better idea of when your introductory offer ends. That way, you can schedule monthly payments to ensure they all fall within the introductory 0% APR period.
What "The Intro Period" Actually Covers
With BankAmericard, purchases qualify for the 0% introductory rate immediately. Meanwhile, balance transfers only qualify if you complete them within 60 days of opening the account. Each balance transfer also requires a 5% balance transfer fee, or $50 in fees for every $1,000 in debt you consolidate.
Move a balance on day 61, and it won't get the intro rate at all. Worse, the balance will accrue interest at the standard APR from the transaction date.
What Happens When the Intro Period Ends?
Once your 21 billing cycles are over, any remaining balance will start accruing interest at your regular variable APR of 15.24% - 26.24%. The rate you receive depends on your creditworthiness when you're approved, and it can change over time since it's variable.
One nice feature of BankAmericard is that it doesn't charge a penalty APR. This means a late payment won't automatically trigger a higher interest rate, although you could still face late fees and damage to your credit score.
According to Kyle Enright, president of lending at Achieve, individuals need to have a budget in place and incorporate payments into the budget so they can pay off their balance in full before the promotional period ends.
Consumers should also take care not to run up a balance on the balance transfer card or the card they’ve transferred the debt from," said Enright. "It can be a good idea to store the new card in a safe location so you are not tempted to use it.
Many balance transfer credit cards offer a 0% intro APR for 12 to 18 months, but BankAmericard gives you even more time to pay down debt without interest. Its 21-billing-cycle introductory offer is one of the longest available, and it applies to both purchases and qualifying balance transfers.
Also note that some competing cards offer different introductory periods for purchases and balance transfers. With BankAmericard, you get the same lengthy promotional period for both.
What Doesn't the Intro Rate Cover?
BankAmericard's 0% intro APR doesn't apply to cash advances, which is common among credit cards with introductory APR offers. If you use your card to withdraw cash, you'll pay a separate cash advance APR that starts accruing interest right away. You'll also pay a cash advance fee, and there's no grace period, either.
You also can't use the introductory offer to transfer balances between Bank of America accounts. If you're planning to consolidate debt with this card, the balance you're transferring must come from another card issuer or lender.
How to Use the Window Without Getting Caught Out
To make the most of BankAmericard's 0% intro APR offer, come up with a plan to pay off your balance before the promotional period ends. One easy way to do this is to divide your balance by 21 to see how much you need to pay each month. For example, a $6,300 balance would require monthly payments of $300 to become debt-free in 21 billing cycles.
Consider setting up automatic payments so you stay on track and avoid missing a due date. If you're transferring a balance, also make sure you complete the transfer within the first 60 days of opening your account to qualify for the introductory rate.
Debt attorney Leslie H. Tayne, Esq. of Tayne Law Group, also says it's crucial to factor in balance transfer fees that apply. Once you know the fee that's required to transfer your debt, she recommends factoring that fee into your total cost and comparing it with the interest you would save to see if the balance transfer is worthwhile and will save you money in the long run.
Doing this math upfront is imperative to your savings, as it wouldn't make sense for a balance transfer if it isn't saving you a significant amount of money on your debt.
Does the 0% APR apply to both purchases and balance transfers?
Yes, but the terms are unique across these offers. BankAmericard purchases get 0% from account opening, whereas balance transfers only qualify if completed within 60 days of account opening. Balance transfers also require a 5% balance transfer fee.
What's BankAmericard's APR after the intro period?
A variable APR of 15.24% - 26.24% will apply after the introductory period ends, depending on your creditworthiness at approval and how the rate moves afterward.
According to debt attorney Leslie Tayne, it's a good idea to have a payoff plan in place for once the introductory period ends that considers the additional cost of the interest that will begin accruing.
"Know when the promotional period ends so you are prepared, and ensure your payoff plan aligns with your other necessities in your budget, so that it's a realistic and thorough plan," she reminds.
Does the intro APR reset if I open a second BankAmericard?
Not automatically. Approval for a new account depends on your credit profile at the time, and Bank of America may factor in your existing relationship with the card.
What happens if I pay late during the 0% intro period?
Your 0% introductory rate stays in place since the BankAmericard has no penalty APR, but a late fee of up to $41 can still apply. Also, a missed payment can still affect your credit score.
If you're weighing this against other low-interest cards, the length of the intro window matters less than what your rate looks like the day it ends, and that's where the BankAmericard tends to hold up.
Why Trust BestMoney?
Our mission at BestMoney is to make financial decisions less overwhelming. This article was produced by the BestMoney credit cards editorial team, which reviews and compares financial products to help readers make informed decisions. Holly Johnson is a credit card expert, award-winning writer and mother of two who covers travel rewards and loyalty programs, rewards credit cards, loans, banking and personal finance. In addition to writing for publications like LendingTree, U.S. News and World Report Travel and Travel Pulse, Johnson owns Club Thrifty and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You'll Love."
DisclosuresBestMoney may receive compensation from some of the card issuers featured on this page, including Bank of America. This may influence which products we cover and where they appear, but it does not affect our editorial evaluations. Not all card offers available in the market are included. Card details are accurate as of publishing date and are subject to change. Your APR will depend on your creditworthiness. Terms and conditions apply. See the issuer's website for current rates, fees, and full terms. All cards are subject to credit approval. Prequalification is not a guarantee of approval. Checking prequalification uses a soft inquiry that won't affect your credit score; submitting a full application results in a hard inquiry. Examples are for illustration only and are rounded. They assume no additional purchases, on-time payments, and no other fees. Your actual costs will depend on your APR, balance, and payment behavior.
Written byHolly Johnson
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
