In today's credit-driven world, companies want your
business, and often offer enticing deals to get it. Perhaps
one of the biggest of these deals is the 0% APR feature.
Many credit cards come with a certain period in which you
pay absolutely nothing in interest. This can really work to
your advantage. If you understand how the 0% APR offer
works and plan strategically, you can make the most of your
credit card deal. Here's how.
What APR Means
The annual percentage rate, or APR, represents how much you
pay in interest on a credit card. It is expressed as a
yearly rate. So if your card comes with an 18% APR, and you
carry a balance of $1,000 for a year, you will have to pay
$180 in interest annually.
However, if you apply for a 0% APR credit card, you will
not have to pay anything toward interest for an initial
period of time. This timeframe varies from card to card,
but usually lasts between six months to a year. Let's say
your card comes with a 0% APR for twelve months. If you
carry a balance of $1,000 during the first year, you will
not owe a dime in interest. That's a savings of $180
compared to the card with a rate of 18%.
Balance Transfers vs. Purchases
Some cards let you apply the 0% APR toward balance
transfers. This means that if you are carrying a balance on
a different card with a high interest rate, you can bring
over the amount to your new card. Then you can pay off the
debt, interest-free. This is a great option if you're
struggling to pay off a nagging balance. Simply bring it
over to the 0% APR card. Then try to pay it off during the
interest-free period. So if you have a balance of $1,200
with 0% APR for six months, set aside $200 each month and
pay off the debt.
Other cards apply the 0% APR to purchases. With this setup,
you can use the card to shop, and then not worry about
paying interest. You will have a few months to get rid of
the balance, and will save a good amount of money in
interest during that time.
Finding a card that offers an introductory period of 0% APR
for balance transfers, purchases, or both, is easy. Most
major credit card companies, including Visa, MasterCard,
Discover and American Express, include it in their list of
features. If you browse a credit card website, you'll
quickly come across 0% APR options. As you look through the
different listings, note which cards offer a zero percent
introductory rate and for how long. After a certain period,
a regular interest rate will set in. Check what the normal
rate is before you apply.
Use it to Your Advantage
The benefits of a 0% APR card can add up fast. If you want
to pay off a balance, you get the chance to do so without
having to worry about interest. If you want to make a large
purchase, you can take a few months to pay for it with zero
interest charges. Fill out an application today, and get
ready to watch the savings rack up.
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To View 0% APR Credit Card Offers click the following link:
http://www.credit-card-surplus.com/0-apr-credit-cards.php .
Ed Vegliante runs http://www.credit-card-surplus.com , a
directory helping consumers to compare and apply for credit
cards.
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