An introductory annual percentage rate (intro APR) is a special offer credit card companies use to attract new customers.

Intro APRs are low interest rates extended to new credit card customers for a set period of time (usually six or twelve months). Intro APRs may apply to new purchases, balance transfers, or both.

Some intro APRs are as low as 0%, in which case the customer pays no interest on new purchases or balance transfers during the introductory period.

If the intro APR applies to balance transfers but not purchases, new purchases will be subject to the standard interest rate.

Credit cards apply payments to balances carrying the lowest interest rate first, meaning you will be paying down your balance that you are paying the intro APR on while new purchases at the standard APR will not be paid down and will continue to accumulate interest.

Additionally, credit card companies may revoke the intro APR if you are late with a payment or go over your credit limit. If this happens your rate will become the standard rate or possibly a higher default rate.