Have you ever thought about how nice it would be to always have a credit card with 0% APR, no matter what? Well, here's a list of seven things you need to do every day to make that happen.
0 APR credit cards are here to stay. We've learned (again) the lessons of the holidays now that we're well into the New Year. Zero-interest credit is a good idea, but why not make it work for all of your credit cards, not just the one you have now? This seven-point list will make sure that the smart consumer gets that low APR credit for many years to come.
- Pay on time to avoid late fees. People who have a credit card with 0% APR might get used to it and forget to pay it. Yes, it does happen. But credit card companies can and will charge a late fee every time a payment is late. This can add up, especially for people who are always late. Again, the best answer is a direct debit from your bank account.
- Make sure you move the full balance from your old credit card to your new one on time and in full. Make sure to leave time for the balance transfer to be processed and for all the paperwork that goes along with it (yes, even in the age of the Internet, there is still some paper involved!) Check to make sure that the opening balance limit on your new credit card with 0% APR is at least the same as or higher than the balance you want to transfer from your old credit card. If it isn't, the difference will cost you money.
- Make sure you have a new credit card with a low interest rate or no annual percentage rate (APR) ready to go so you can transfer the balance of your current credit card to it. Why have credit with 0% APR for 6 or 12 months when you can have it for as long as you want? With this in mind, you should always check the news and financial pages for new deals and credit card offers. Join an online forum that focuses on this kind of thing.
- Don't go over the amount of credit you agreed to in the agreement. Don't go over the balance limit that was written into your original agreement, or you'll have to pay more.
- Pay the minimum charge in full at least. Even better, have your bank set up a standing order or direct debit. You can set it up so that the minimum is automatically taken out of your bank account every month.
- Look at the fine print. Make sure it's the same as what's advertised on the credit card. Check especially for clauses that make a difference between purchases, cash transfers, and cash withdrawals. Check that the card doesn't have a ratio between purchases and cash withdrawals that charges an extra fee if the cash withdrawals are more than the purchases (that is usually the way it is biased, but check to make sure).
- Take into account any extras in the contract that are written in the fine print (which you will have read). For example, the 0% APR may be made up for by an annual fee. Some cards with 0% APR do this, but some don't. Remember that the whole point of the APR was to make sure that extra charges were the same for everyone. If you pay an annual fee for your card, it's not really a 0% APR card.
