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0% APR Credit Cards: The Pros and Cons

0% APR Credit Cards: The Pros and Cons

A few years ago, credit card companies started offering a 0% APR feature to attract more customers. APR stands for annual percentage rate, and it represents the interest rate that is applied to the balance you carry. With the 0% APR feature, you won’t be charged any interest for an initial period of time. Getting this type of card may be helpful, but it’s important to understand what’s all involved. Here’s a look at the pros and cons of this type of credit card.

Pros of a 0% APR Credit Card

Getting a 0% APR credit card means you will have a certain amount of interest-free time. During this period, no interest will be charged to your account. This usually lasts between six and twelve months. Sometimes the length of time varies, depending on your credit score.

In this sense, a 0% APR credit card can work like an interest-free loan. If you make a big purchase, you can take a few months to pay off the balance without have to worry about any additional interest charges. You might even think about setting up a payment plan for yourself. Each month, pay off part of the balance so that when the 0% APR period ends, you do not have any remaining debt.

In a similar way, if you have an existing balance on a credit card that charges a high interest rate, you could consider transferring it to a 0% APR credit card. You’ll then have the chance to pay off the balance, interest-free. This technique could save you hundreds of dollars in interest charges.

Cons of a 0% APR Credit Card

While the introductory period of 0% APR is a nice feature, it does not last forever. Eventually, a regular APR will set in. You’ll want to know what this rate is before you apply. If it seems too high, look for a different credit card with a lower interest rate.

You may run into problems with a 0% APR credit card if you have trouble paying off the balance. It can be easy to run up a high balance during the interest-free zone. When that period ends, however, you’ll have to pay interest on the amount due. So if you do run up a high balance on the card, work hard to pay it off as soon as you can.

You’ll also want to check your credit score before you sign up for a 0% APR card. The higher your score is, the more likely it is that you will be approved. Most 0% APR cards are designed for people with good or excellent credit. If yours is poor, however, you may still be able to find a card. Look for one that is made especially for your credit condition.

Like any card, the 0% APR credit card can work well if you use it wisely. Before you apply for one, look carefully at all of the options available. Then send in an application through the Internet. Once you’ve been approved, you can start planning ways to benefit as much as possible from the card.

Click Here to Find 0% APR Credit Cards. Ed Vegliante runs the website www.Credit-Card-Surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers.

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Things You Need To Know With Regards To Balance Transfer Charge Cards

A 0 balance transfer credit card account may seem like the solution to your charge card account woes. However, before you jump in with both feet there are some things you need to watch out for. Remember that saying “if it looks too good to be true…”? There’s a reason so many people say it. Make sure you don’t fall for these 3 common pitfalls when looking for a 0 balance transfer charge card account.

1. You Want Me To Pay What?

A 0 balance transfer charge card can seem like a wonderful opportunity — until you read the fine print, that is. Some balance transfer credit cards want you to pay a free to transfer your balances over to them. Sometimes this fee can be as much as 3 or 4 percent.

If you have a $5,000 balance and you’re being charged a 3-percent balance transfer fee, that 0 balance transfer credit card account is going to cost you $150. Since some balance transfer credit card accounts don’t charge a fee at all, that fee may be hard to swallow.

2. Let Us Abuse You Yearly

If you have good credit, you should never pay an annual fee for a credit card account. Even if it is a 0 balance transfer credit card.

There are plenty of credit cards out there that don’t charge any annual fee at all. Why should you pay $30 or $40 a year for a card when you can get the same thing for free somewhere else.

If you’re not careful, a 0 balance transfer credit card account can nickel and dime you right out of your savings. Don’t end up paying more for that 0 percent than you would with a fixed-rate low-interest card.

3. Look How High I Can Jump

A 0 balance transfer credit card account is not a fixed rate card. Your interest is going to go up at some point in time. Just how high it goes is the question.

Some balance transfer credit cards entice you with a 0-percent introductory offer, jumping up to more than 20 percent when the “real” real rate kicks in. If you have good credit, that’s no deal at all.

Before you apply for any 0 balance transfer charge card account, make sure you know exactly how long that 0 rate lasts for and how much it’s going to go up to when the introductory period is over.

Balance transfer credit cards can indeed be a charge card account user’s best friend. They can also be your worst nightmare. Make sure you avoid the above mistakes and find a 0 balance transfer charge card account that’s truly right for you.

This article is brought to you by www.JemCreditCards.com – More than charge cards, we build financial stability. A great place to compare the best credit card offers including Discover credit cards, Chase cards, and much much more!

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