When it comes to credit cards with 0% APR, you might be wondering how to get the most out of these deals. In fact, there are a lot of them out there. Most of the time, though, being able to offer this service is more of a trick. As a way to get you to use their cards, card issuers may offer introductory 0% APR rates. But even if this is just an introductory offer, these benefits can still be very useful. If you think about what's out there for a few minutes, you may find that you qualify and can benefit from these credit cards with no interest.
What Do They Mean?
The first thing you should do is figure out what a credit card with a 0% APR is. With this card, you can use credit without having to pay interest on the amount you've borrowed. Any fees, like annual fees, will still apply, but you don't have to worry about a 25 percent interest rate being added to this amount of money, at least not at first.
The credit card with 0% APR is only available for a limited time. It is never offered for the whole life of the card or for a long time, like 12 months or more. This 0% interest rate will almost certainly only last for a short time. Some of the longer, longer introductory APR offers can last as long as 15 months. Sometimes it's just a few months. Your goal should be to make the most of this offer while it's still an introductory offer and think about how it can help you.
What You Get
First, you should look closely at all of the details of each 0% APR credit card offer you're thinking about. Then ask yourself the following:
- Can you live with this APR, especially if you tend to carry large balances on your credit cards?
- How does this compare to the credit cards you already have?
- Are there any other fees you should think about, like an annual fee?
- How does it stack up against the other offers you're thinking about?
- What is the APR for the rest of the loan after the introductory period ends?
- How long does the card's introductory rate stay the same?
Since each offer for a credit card is a little different, make sure you read the fine print before you just accept any offer.
You can save money when you take what you're given, in this case a credit card with 0% APR, and use it to your advantage to save money, sometimes a lot of money. Let's say you have a credit card with an annual percentage rate (APR) of 25%, which is definitely not cheap. Now you want to find a way to lower the amount, but the lender won't lower the APR (you should always call and ask your current lender to lower your APR!) You should also find out if the 0% APR offer on your credit card is for purchases, balance transfers, or both. If the introductory rate only applies to balance transfers, you should move your outstanding balances to the new account and pay them off before the introductory period ends. If the introductory APR only applies to purchases made with the new card, you should use it.
only for new purchases while you keep paying down the balances on your cards with higher interest rates. And if the introductory APR of 0% applies to both purchases and balance transfers, you should use this card for all of your card transactions while the introductory period is still going on.
The key to any of these credit card strategies is a fast plan to pay off the card balance that reduces how much the high APR finance charges add up. If you keep letting your credit card balances roll over, you may end up paying just as much, if not more, on the card. Yet, the six months or more with no interest can be a real blessing for people who pay off their balances quickly during the introductory period.
