What Makes a 0% APR Credit Card An Attractive Offer?

Credit cards that offer zero percent interest rate are certainly popular among consumers.  Of course, everybody would welcome the chance to enjoy zero interest from their credit cards.  Nevertheless, although a 0% APR sounds tempting you need to be careful about making choices.  In this article, let’s discuss some things that you need to consider before signing up for a zero interest credit card.

What 0% Interest Really Means

List of credit cards for people with bad credit-minFirst, it’s important to remember that free interest rate is not a permanent deal.  The new Credit CARD Law mandates issuers who want to offer an introductory rate to allow 6 months, at the very least.  You may be able to find credit cards that offer up to 12 months of 0% APR.  But as soon as the introductory period ends, the regular interest rate will apply. Hence, a consumers needs to check how much the regular rate would be when the 0% APR expires.

[Article: In Search of the Best Low Interest Rate Credit Card]

Another aspect is that some credit cards impose more than one interest rate.  This means, the rate applicable to purchases may be different from rates that apply to balance transfers and cash advances.  Before signing, make sure that you understand what the zero APR offer really means.

If for instance, the 0% APR only applies only to balance transfers, be careful about using your credit card for payment as the APR on new purchases could be high.  Aside from that, although you can enjoy free interest on the balance you’ve transferred, you could be charged with fees every time you transfer a balance from another credit card.

What Happens After the Zero Percent Interest Offer?

Watch out!  Teaser rates can sometimes be misleading.  If you will not spend time reading and understanding the issuers Terms and Conditions, you could get stuck with a really bad deal.  Remember that if you fail to finish your payments on the balances you’ve transferred while the zero rate applies, you will have to continue paying them with the regular APR.

[Article: Benefit from Your Low Interest Credit Card]

Consequences of Zero Interest Rate Credit Cards

Usually, credit cards with zero interest have more rigid rules.  For example, not submitting your payment on schedule may cause you to be charged with the regular interest rate or with high penalty fees.  This is why, understanding the rules right from the beginning is crucial.

If you have decided to get a new credit card with zero interest, make sure that you are not enticed the 0% APR alone.  Check the rest of the fees and the conditions so you can be assured that you are making the right decision.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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