0% APR Credit Cards - A Smart Way to Save
By Ed Vegliante
With the plethora of credit card options available today, you can use plastic to pay off debt and save money. Using a credit card to get rid of debt, rather than rack it up, may sound strange. But it is possible with 0% APR credit cards. All of the major credit card companies offer 0% APR credit cards. They are a great way to save hundreds, even thousands, of dollars on interest. If you use them wisely, 0% APR credit cards will help you get one step ahead in the credit card world.
What 0% APR Credit Cards Are
APR stands for the annual percentage rate on your credit card. When credit card companies advertise 0% APR, they are giving you the chance to carry a balance on your card and not pay interest on it. The timeframe for this 0% APR is usually between six months and a year.
Some credit cards only include 0% APR on new purchases. Others offer the 0% interest rate for purchases and balance transfers. With the balance transfer option, you can shift the amount that you owe on a card with a high interest rate to the 0% APR credit card. If you pay off the balance within the introductory period, you will avoid paying high fees in interest.
The savings you’ll receive from a 0% APR credit card can add up fast. Let’s say you carry a balance of $2,000 on a credit card for a full year. If the interest rate is 20%, you will have to pay $400 in interest. This would not be the case with a 0% APR credit card. If the 0% introductory period is twelve months, you will avoid paying $400 in interest. That’s a significant savings!
Read the Fine Print
While 0% APR credit cards offer a great way to pay off debts and save on interest, it is important to understand the details involved. Some companies issue the introductory period based on your credit score. If you have good to excellent credit, you will receive a longer introductory period than if you do not have outstanding credit. Keep in mind, however, that there will still be an end to the introductory period.
This is why it is also essential to look into the “go to” rate. This refers to the APR that will go into effect after the 0% APR introductory offer. This “go to” rate is often higher than other credit card offers. If you check into this before applying for a 0% APR credit card, you will know what is in store for you after the initial grace period.
There are sometimes additional fees involved with 0% APR credit cards. They may charge a certain amount to transfer balances on to the card. Also, the interest rate may be raised if you miss a payment. Some 0% APR credit cards are only available to those with good credit. If you have poor credit, you may be better off with a different credit card.
If you want to pay off some debt or make a large purchase, it is time to look into a 0% APR credit card. You can use the introductory period to pay off balances. Then take the money you’ll save on interest expense and use it for other purchases. Apply today for a 0% APR credit card and start saving.
Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com
3 Must Ask Questions to Maximize Your 0% APR Credit Card Return
By Duran Mueller
As the competition between various credit card companies is increasing, they are adopting more attractive offers to acquire new customers. Though not new but 0% APR credit cards are also in the league of such offers. APR stands for Annual Percentage Rate - which in simple terms is the interest charge by companies on outstanding credit card balance. So a 0% APR means no interest is charged from the credit card holder.
0% APR credit cards come with many flavors:
0% APR for the life of credit card
0% APR for a limited period
0% APR offers for some services and a different APR rate for other services.
A credit card holder should face the fact that this kind of offer is only a marketing strategy and won't last for long. This is because that a credit card company is there to make money for their services and the APR is their leading money spinner. The 3 must ask questions listed below will surely help you get a perspective on your 0% APR credit card and make an informed decision.
1. How long will the 0% APR offer last?
If it is not for the entire life of credit card how long is the 0% APR offer going to last. Some credit card companies give this offer for 6 months, some 1 year and some for even more than that. If other things are the same the one with the longest 0% APR offer should interest you.
2. What APR will be charged after the introductory period expires?
What will the credit card companies charge you when the 0% APR offer expires should be your main concern. Because the credit card company has already losing revenue by giving you a 0% APR credit card offer it could try to compensate with a higher APR after the intro period expires. Compare this APR with the APR's of other credit cards which offer similar services. You shouldn't get ripped because you fell into a 0% APR credit card trap. This feels bad afterwards.
3. What are other fees and benefits of the credit card?
0% APR coupled with a high annual fees and other charges could wipe out the savings you intend by taking a 0% APR credit card. Also ensure the APR on cash advances, purchases, and balance transfer. If a 0% APR credit card offer tries to compensate for the loss in revenue by charging exorbitant APRs on other services its better to avoid it. Knowing about the different features and benefits is also helpful.
The idea is not to get ripped off by the credit card companies and get maximum benefits on the 0% APR credit card. The credit card companies sugar coat their offers to lure new customers but, it is in the interest of credit card holder to ask right questions and get complete facts before applying for any 0% APR credit card.
Duran Mueller an expert author and credit card consultant, provides great American express credit card tips. Read more credit card articles like: Benefits of applying online for credit cards if you have bad credit, Techniques Used To Raise Your Credit Score - FAST! at his credit card website
