How To Get Your Own 0% APR Credit Card

July 11th, 2010 - 
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A great way to do your daily business is to have all purchases put on your 0% APR credit card. The convenience is there of using a credit card, and the luxury of knowing that the amount owed will not receive any interest charged to it. In a day of high interest, you could probably use such a card, and this article will tell you how to look for the one that is best for you and how to get your own 0% APR credit card offers. Here are some things that you should look for.

You Need Good Credit

This is the primary prerequisite to getting that 0% APR credit card. Nearly all credit card companies will require either a rating of good credit or of excellent credit before they will give you this type of card. So, if your credit just is not up to that level yet, know that you can work to bring it up to that level, and then – there are rewards for you when you get there.

It Is An Introductory Offer

The 0% APR is only an introductory offer that lasts for a specified amount of time – not the life of the card. When doing your comparison shopping for a 0% APR credit cards, be sure that you compare the time period involved. It may be for as short as 6 months, a year, or even as long as 15 months.

Balance Transfer Or All Purchases

Some credit card ads that say 0% APR credit cards only refer to the balance transfer option. In other words, only the amount that you transfer from another credit card to the new one receives the 0% APR. All other purchases receive a regular rate of interest for that card. Be sure that you look carefully to see if this is what is meant by 0% APR, or if it means all purchases. Online 0% APR credit card comparison charts will usually show the items in a way similar to this: Intro APR Period and Regular APR. The regular APR, of course, refers to all purchases made after the introductory time period.

Cash Back Option

Why settle for just 0% APR, when you can even get an additional savings? More ways to save – whether it be cash, or points, definitely sweetens the pot a little bit more. Again, though, you have to look around and do that comparison shopping for your 0% APR credit card. Watch out for the need to leave a monthly outstanding balance in order to receive your cash back rewards.

Annual Fee

A rather small percentage of these credit cards do have an annual fee. It seems that they might be hoping that you don’t compare the cards too carefully. This fee can go from anywhere between $15 all the way up to $135.00 (more for a business card).

Interest Rates

Eventually, the day when your rates return to normal will come. Or, typically, if you miss a payment, or are late with it, you can find yourself being charged the full interest rate. Interest rates for these kind of cards are normally low — as long as the payments are made, on time. These rates will vary from a low of about 7.99% up to about 15.99%, depending on the particular card.

With these tips about what to look for when you’re in the market for a 0% APR credit card, you should be able to find just what you need. Do your comparison shopping carefully, and make an educated decision – and keep tabs on your monthly bill, too, for any extra charges.

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0% APR Credit Cards Make It Possible To Save Money

February 9th, 2010 - 
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0% APR Credit Cards Make It Possible To Save Money

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I’m sure you’ve seen direct mail offers, promotional brochures and Internet ads announcing:

“0% APR credit cards. Limited time offer. Apply today!”

You can’t beat that for a credit card. That’s just like buying something with cash. A great deal, especially if you don’t have cash on hand. But you may be wondering, “How can the credit card companies and banks make money if they aren’t charging interest?” Well, read on to find out whether or not these 0% APR credit card offers are just pulling your leg.

Deal Or No Deal

Every time you buy something using 0% APR credit cards, you pay absolutely no finance charges or interest rate charges on your entire credit card balance. Just think… you can refurnish your home, pay for your child’s college tuition or go out on a spending spree without paying a penny more.

However, most 0% APR credit cards offer only “introductory rates” at 0%. This low rate may be limited to a specific time period, such as 3 months or as long as a year. In addition, 0% APR credit cards often allow you to transfer balances (up to a specific amount) from another credit card to take advantage of the zero interest deal. Once the introductory rate period ends, then the APR can go through the roof.

Okay, so maybe you can’t get 0% interest into eternity. But, if you play your card right, you can still reap the benefits of these unique offers.

Making Zero Interest Work For You

You may already have several credit cards and can’t imagine what you’d do with another. After all… personal finance experts advise against having too many credit cards. Before getting a 0% APR credit card ask yourself, “What is the APR on my credit cards?” and “Do I carry a balance on my cards from month to month?”

The average interest rate for credit cards is around 14%. On the low end, you may have a card that charges as little as 5% interest, whereas cards for those with bad credit or no credit can be a whopping 29%. Retail credit cards tend to have a high interest rate around 19%, even if you have A1 credit. If the interest rates on your cards are up into the teens, then you definitely need to consider other options (a 0% APR credit card), unless you pay off your balances on a monthly basis.

Don’t throw money out the window and into the pockets of the credit card companies. If you have high interest cards and pay only the minimum balance, then it can take years to pay off. $1000 spent could nearly double to almost $2000 by the time it’s paid off. The best thing to do is transfer the balance to a 0% APR credit cards.

Where To Find 0% APR Credit Cards

If you have good credit, chances are you’ve already been bombarded with mail offers. You might even find these special values available through organizations you belong to or companies that you do business with regularly. Other sources include your local banks and credit unions. And don’t forget to search the Internet. It’s a great place to comparison shop for numerous credit cards. Keep in mind that you usually need to have good credit to qualify for a 0% APR Credit Card.

0% APR credit cards allow you to avoid finance charges altogether. If you are in debt, this is especially helpful in that you can pay down your balance much more quickly. But be sure you don’t end up in a situation where you transfer balances from one card only to fill the old card back up again with new purchases. If you’ve been thinking about making a large purchase but don’t yet have the funds and don’t want to take out a loan, then a 0% APR credit card will be like paying cash. Just be sure to pay off your balance before the introductory rate ends and finance charges begin.

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0% APR Credit Cards: Use Them To Your Advantage!

January 10th, 2010 - 
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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!

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