In the business world of finance, the number zero can mean something that is either good or bad. When it comes to 0 APR credit cards, companies are mostly taking advantage of people's desire for no interest (pun intended). But are 0% APR credit cards all good and nothing bad?
The Pros of Using a Credit Card with 0% APR
Balance Transfer: You can use your new credit card with 0% APR to lower the amount you have to pay on your other credit card debts. You can do this by transferring the balances from your old credit cards to the new one. Of course, you should pay off your debt within the time you were given.
Savings on purchases: The most obvious benefit of a credit card with 0% APR is that you can buy anything with no interest. You can even choose to pay the minimum amount for several months if you want, as long as you pay off your credit card bills before the promotional period ends.
The bad things about using a credit card with no interest rate
If you aren't careful about how you use your 0% APR credit card, it could be your last piece of plastic money.
Zero isn't Forever: No-interest offers don't last forever. Once the promotional period is over, your card will be like any other credit card, and you'll have to pay standard interest rates again. It could be even worse if the interest rate on your 0% card ends up being twice as much as what you pay on your other cards.
No to Balance Transfer: You might find out too late that your plan to transfer your balance is not allowed. Or, you might have to pay very high processing fees before you can move the balance from your old credit card to the new one. Before you apply for a credit card with no interest, you should carefully read the terms and conditions to avoid this.
High Penalties: If you don't pay on time, many cards with 0% APR will charge you high fees. Worse, they can even take away the no-interest offer if you do anything wrong.
Swiping Out of Control: When people get their new credit cards with 0% APR, they often get "swiping fever" and end up shopping more than they need and certainly more than they can afford.
How to Choose and Use a Credit Card with No Interest Rate
There is no perfect credit card. You shouldn't feel bad because you now know the limits and problems you might run into when using a credit card with no interest. With the right mindset, you can still get the most out of a credit card with 0% APR and not have to deal with any of its downsides.
Carefully read the terms and conditions. Know what the interest rate will be after the introductory period. Find out if you can transfer your balance and what will happen if you forget to pay on time.
CHOOSE the credit card with no interest rate that fits your needs and budget the best.
Discipline is the key to resisting the urge to spend too much. If you really want to treat yourself with your new credit card, buy things that you need, that will help you, and that will last a long time.
I hope your new credit card gives you a lot of fun!
