The era of 0% APR credit cards is still with us. Yes, you can obtain a spanking
new credit card featuring a very low introductory interest rate and take
advantage of what amounts to "free money" for you for up to one year. You can
use your new card to your advantage, but you must be careful that you fully
understand how a 0% APR credit card works to order to maximize its
effectiveness. I will show you how, so please keep reading for all the
informative details!
Soon after the new millennium started, interest rates began to drop to historically low levels. By 2002, loan rates for government funds dipped to just less than one percent, pushing consumer loan rates down with it as well. Credit card providers, seeing a terrific opportunity unfolding, immediately began to offer 0% APR credit cards to new card holders and even extended the offer to their current customers.
Today, interest rates have been climbing for two years, but 0% APR credit card offers are still available to you. Quite frankly, the entire lending business is very competitive and credit card providers are willing to forego interest for up to twelve months in order to get your business.
To maximize the effectiveness of 0% APR credit cards, there are a few things that you must know:
Limited Time Offer
Soon after the new millennium started, interest rates began to drop to historically low levels. By 2002, loan rates for government funds dipped to just less than one percent, pushing consumer loan rates down with it as well. Credit card providers, seeing a terrific opportunity unfolding, immediately began to offer 0% APR credit cards to new card holders and even extended the offer to their current customers.
Today, interest rates have been climbing for two years, but 0% APR credit card offers are still available to you. Quite frankly, the entire lending business is very competitive and credit card providers are willing to forego interest for up to twelve months in order to get your business.
To maximize the effectiveness of 0% APR credit cards, there are a few things that you must know:
Limited Time Offer
0% APR credit cards contain an introductory period lasting
typically from six to twelve months. This means that anything you charge during
that time will not accumulate interest. Go ahead and spread out your payments
over several months: If you purchase something for $1000, you can make four
equal payments of $250 interest free. Keep earning interest on your savings and
let the credit card company fund your purchase!
Transfer Balances and Save Big!
Transfer Balances and Save Big!
Many 0% APR credit card offers will allow you to
transfer balances from your existing credit cards to your new card and waive
transfer fees. If you owe $3000 on your current credit cards and are paying 19%
interest on your balances, you could save nearly $600 in interest payments over
twelve month's time!
Pay On Time
Pay On Time
Do not be lulled into thinking that a 0% APR credit card doesn't
require monthly payments. If you miss a payment or are late, you could find that
your remaining balance is subject to interest charges and penalties as your card
shifts to a default rate. Pay on time or kiss your 0% APR credit card rate
goodbye!
Pay It All Off
Pay It All Off
In some cases, you must pay off your balance before the
introductory rate period expires. If you don't, the default rate kicks in. Make
certain that you clearly understand your card's terms.
Clearly, a 0% APR credit card has strong advantages for the person seeking to make new purchases as well as someone who wants to transfer their balances. Use a 0% APR credit card to your advantage and put some money back in your pocket!
Clearly, a 0% APR credit card has strong advantages for the person seeking to make new purchases as well as someone who wants to transfer their balances. Use a 0% APR credit card to your advantage and put some money back in your pocket!