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. 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! 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. 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. 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!
About the author:
Ed Vegliante runs
www.Credit-Card-Surplus.com,a credit card directory enabling
the consumer to compare and apply for credit card offers
including
0% APR Credit Cards .
