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Save Money with 0% APR Credit Cards
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Credit cards have grown to be a necessity for us especially now that we have fast changing needs. These cards have provided us with practicality and convenience such that we can now purchase goods and services without the need of going out or spending using hard cash.
But we also know that through the improper use of credit cards we can fall fast into debt. The APR or interest rates significantly increase your credit card dues, thus if you can’t maintain spending wisely, you may end up bankrupt as the year ends, not to mention the fact that this ruins your credit rating. So, if you want to protect yourself from getting into this kind of situation-and of course, save more money, then there’s one solution you can do: get a 0% APR credit card!
Why should you take advantage of a 0% APR credit card?
APR stands for annual percentage rate, and at most times, companies offer an initial 0% APR on their credit cards for 12 months as part of their package. With a 0% APR credit card, you can save money since it lowers the amount you have to pay on your credit card bill. This introductory offer can be applied on new purchases or balance transfers, even both. With this promo, you can then spend more on the both your needs and wants without worrying about the interest added to your bill.
The second main reason why you should take advantage of a 0 APR credit card is because the offer doesn’t last forever. The 0% APR promo usually lasts for 6 to 12 months, depending on the package. There are even some companies that do not provide such offer, so when you are planning to make a credit card application, you must first check whether the card you want has a 0 APR promo, and how long will it last.
Another great advantage 0 APR credit cards can do is that it helps you in building up your credit rating. If you are the person who can manage paying your monthly bills regularly, then your credit card company will continue to supply your more benefits aside from 0 APR, such as lowering your interest rate after the 0 APR promo expires. You will then have more freedom to make as many purchases as you can since the lower rates and other benefits are there to help you out.
Meanwhile, if you want a new card to do balance transfers, then 0 APR credit cards will suit best in this need. These cards provide you with more flexibility in transferring balances during the promo period. This also helps you in reducing interest payment, and gives you more time to pay back the balances which you have transferred after the offer period expired.
Once the introductory offer of 0 APR expires, you then become a full-fledged credit card holder. This means that you will now be charged with a regular APR rate. Unfortunately, while you are still entitled to other benefits, the 0 APR will never come back, as it is only a one time introductory promo. Credit card companies may change your APR anytime they want, however, depending on your payment attitudes as well as your credit history. Thus, if you want to keep a low interest rate on your credit card after the promo expires, then you should pay your credit card bill always on time.
The Credit Card Crunch
If there’s one bill most Americans have difficulty paying, it’s their credit card bill. This may be due to a variety of reasons, but this can lead to more serious effects both on credit card users and credit card companies. Because of unpaid bills, companies may no longer provide a 0 APR promo on their credit card packages in the future. Thus, you must grab the opportunity while it is still present; you may not be able to avail of a 0 APR credit card in the next few months because companies have already removed it from their deals.
You may also want to check the different packages credit card companies offer to their clients. If you look deeper on the conditions of their deals, you may see that some packages provide 0 APR credit cards to clients that have a good credit rating. This is one of the present effects of the credit card crunch; companies are now making it difficult for consumers to avail of 0 APR credit cards and only provide it to those who meet their qualifications. Thus, you should get yourself a 0 APR credit card while you still can.
Getting a 0% APR Credit Card
If you are now planning to get a 0% APR credit card, the best way to do so is to compare the deals between different credit card companies. You can check their websites online, or read reviews about their credit deals first. You should first know how long their 0 APR promo lasts and how much will be the interest rate after the offer expires. This way you can gauge if you can keep up with your card’s terms and conditions, and finally come up with a sound decision.
Before making a credit card application, it is also important to look not just on the 0 APR promo, but also on the other features and fees included in the credit card package. Some companies indeed offer a 0 APR for the first 6 to 12 months, but the other smaller, hidden fees can actually add up and make you pay for a regular credit card bill, without the promo. Also, keep in mind of the grace period in paying your credit card bill-going beyond this period can actually put you into bigger trouble, even if your card has 0 APR.
You should also consider your lifestyle before getting yourself a credit card; if you think you will benefit more from a 0 APR credit card than a credit card that purely offers rewards and rebates then go for it. What’s important is that you will be able to pay your bills and not be shackled to debt. Remember, credit cards are made to help you become a wiser, more responsible spender.
October 18th, 2008 at 1:26 pm
I am one of the prudent types. I am told on excellent authority that the next bubble to burst after the sub-prime housing bubble will be the credit card bubble. This is not the right time to go in for credit cards. That is strictly my opinion whereas there is another strong one going around that this is the right time as many of the credit card issuers will go belly up soon enough!
October 19th, 2008 at 1:19 am
Nicole
I think you misunderstand how the credit markets will spread to credit cards. Soon we won’t be able to get low APRs and no fee credit cards. The cost of charging will get expensive.
October 19th, 2008 at 10:03 pm
It’s a good point to compare the deals between different credit card companies.
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January 29th, 2010 at 2:13 pm
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April 22nd, 2010 at 2:07 pm
Great blog. I really didn’t understand much about APR and since my debit card was frauded last year, I’ve tried to make an effort to understand everything I can about credit and debit cards
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