A 0 APR credit card is a good tool for transferring your current credit cards balance or consolidating your credit card debts into one payment only. This way can save you interest charges at least during the introductory rate period, which usually lasts for 6-12 months.
But 0% APR credit cards are not at all beneficial to everybody. If you always pay the outstanding balance in full you would probably disregard the interest rate and wouldn’t be interested in no interest credit card offers. If you belong to this group you may be more interested in credit cards that offer rewards and cash backs instead of lower rates.
Now, do you think you have maximized the benefits of your credit cards? Are you satisfied with the rewards you get and the low-interest you have? What if you have the chance of seeing promotions like zero APR? But the question is, is it true? Is there a great chance that credit card companies can actually offer a 0 percent APR?
What is 0 APR Credit Card?
Both a very low and a 0 APR credit card are promotional programs offered by credit card companies so to get the new consumers on the hook. These offers are usually expressed during the introductory rate to entice new credit card holders to sign up to them. And once they are all hooked up, the companies would start changing and increasing their credit card interest rates.
The question is how come they can offer something so good just like that? Normally you can’t extend the 0% annual percentage rate or APR. It lasts only for 6 months. The countdown starts from the day the credit card is claimed.
How 0 APR Credit Card Works
In many cases, zero percent APR credit cards are attractive to people who would want to have a balance transfer. This is because they would want to consolidate all of their debts into one payment only. And because they have a huge pile of debt, they would rather go to a credit company that can offer them lower interest rates.
Using a 0% balance transfer credit card those consumers will have the chance of paying off their credit card debts with no interest for a whole introductory period. In theory, that would be a lot of savings.
Tips for Using 0 APR Credit Card
To get the most benefits of the low or no interest offers you may need to know what makes a low credit card really low and the best option for retaining that low APR even if the introductory offer is over.
First, understand that APR has two faces: the fixed and the variable. The fixed APR has more stable interest rates than variable rates. Variable rates, however, can start really low but it all depends on the prime rate of the Federal Reserve. This means that at any time, it may increase.
Needless to say, there are really a few credit cards that have low APR. The reason behind it is that APR is actually where the credit card companies get to earn a living. If they continue to give people the low APR that they used to claim, chances are they wouldn’t be in the business for so long.
All of these boil down to one point, that you must be aware on how these offers can give you the benefit that you want. Of course, there are lots of rewards with 0 APR credit card. But if you don’t really need the cards because of the mentioned situations, then it’s best not to have them at all.