The time of credit cards with 0% APR is still with us. Yes, you can get a brand-new credit card with a very low introductory interest rate and use it as if it were "free money" for up to a year. You can use your new card to your advantage, but to get the most out of it, you should make sure you understand how a credit card with 0% APR works. I'll show you how, so keep reading to find out everything you need to know.
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The time of credit cards with 0% APR is still with us. Yes, you can get a brand-new credit card with a very low introductory interest rate and use it as if it were "free money" for up to a year. You can use your new card to your advantage, but to get the most out of it, you should make sure you understand how a credit card with 0% APR works. I'll show you how, so keep reading to find out everything you need to know.
Soon after the new century began, interest rates began to drop to levels that had never been seen before. By 2002, the interest rate on loans from the government had dropped to just under 1%. This caused the interest rates on consumer loans to also go down. Credit card companies saw a great chance and started offering 0% APR credit cards to new cardholders right away. They also made the offer to their current customers.
Today, interest rates have been going up for two years, but you can still get credit cards with 0% APR. In all honesty, the lending business is very competitive, and credit card companies are willing to let you go without paying interest for up to a year if it means getting your business.
To get the most out of credit cards with 0% APR, there are a few things you need to know:
Only for a limited time. The introductory period for 0% APR credit cards usually lasts between six and twelve months. This means that you won't be charged interest on anything you charge during that time. Spread out your payments over a few months if you want to: If you buy something for $1,000, you can pay for it in four payments of $250 each, with no interest. Keep saving and earning interest, and let the credit card company pay for your purchase.
Switch Balances and Save a Lot! With many 0% APR credit cards, you can move balances from your old cards to your new card without having to pay transfer fees. If you owe $3,000 on your credit cards and are paying 19% interest on your balances, you could save almost $600 in interest payments over a year!
Don't be late. Don't think that a credit card with 0% APR means you don't have to make monthly payments. If you don't pay on time or miss a payment, your card could go to a default rate, which means you'll have to pay interest and fees on any balance you still owe. If you don't pay on time, you'll lose your 0% APR credit card rate.
Pay off everything. In some cases, you have to pay off your balance before the period with the introductory rate ends. If you don't, you have to pay the default rate. Make sure you know what the rules are for your card.
A credit card with 0% APR is a good choice for both people who want to make new purchases and people who want to transfer their balances. Use a credit card with 0% APR to your advantage and get some money back.
