With all the credit card options available today, you can pay off debt and save money at the same time. It may seem strange to use a credit card to pay off debt instead of adding to it. But it is possible with credit cards with 0% APR. All of the big credit card companies offer credit cards with an APR of 0%. You can save hundreds or even thousands of dollars on interest by using them. If you use 0% APR credit cards well, they can help you get ahead in the world of credit cards.
What credit cards with 0% APR are
The APR on your credit card is the annual percentage rate. When a credit card company advertises an APR of 0%, it means that you can carry a balance on your card without having to pay interest. Most of the time, this 0% APR will last between six months and a year.
Some credit cards only offer 0% APR on purchases made with the card. Others have an interest rate of 0% for both purchases and balance transfers. With the balance transfer option, you can move the amount you owe on a card with a high interest rate to the 0% APR credit card. If you pay off the balance before the introductory period is over, you won't have to pay high interest fees.
With a credit card with 0% APR, you can save a lot of money quickly. Let's say you have a $2,000 credit card balance for a whole year. If the interest rate is 20%, you'll have to pay an extra $400. With a credit card with 0% APR, this wouldn't be the case. If the introductory period of 0% interest lasts for 12 months, you won't have to pay $400 in interest. That's a big amount of money saved!
Check the small print.
Credit cards with 0% APR are a great way to pay off debt and save money on interest, but it's important to know how they work. Some companies give you an introductory period based on how good your credit is. If you have good to great credit, your introductory period will be longer than if you don't have great credit. Keep in mind, though, that the introductory period will end at some point.
Because of this, it's also important to look at the "go to" rate. This is the APR that will be charged after the introductory offer of 0% APR ends. Most of the time, this "go to" rate is higher than what other credit cards offer. If you look into this before you apply for a credit card with a 0% APR, you'll know what to expect after the initial grace period.
There are sometimes extra fees that come with credit cards with 0% APR. They might charge a certain amount to move balances from another card to this one. Also, if you miss a payment, the interest rate may go up. Some credit cards with 0% APR are only for people with good credit. If your credit isn't good, you might do better with a different credit card.
If you want to pay off some debt or buy something big, you should look into a credit card with 0% APR. You can pay off balances during the beginning period. Then, you can use the money you'll save on interest to buy other things. Apply for a credit card with 0% APR today and start saving money.
