Four Ways to Use a 0% APR Credit Card
Posted on 7/15/2009 - Filed under 0% APR Credit Cards
If you’re applying for a new credit card, you’ll want to make sure you can get the most out of it. Most cards these days offer a 0% APR introductory period. This means that you will not have to pay interest on the balance for a certain period of time at the beginning. Here are four ways to take advantage of those interest-free months.
Give yourself a loan. If you want to make a bigger purchase, like a flatscreen tv, use the card for it. Don’t make any other purchases. Find out how long the 0% APR lasts. Divide the number of months by the total purchase amount. Now you know how much you need to pay off each month to get the balance down to zero by the time the zero percent interest period ends.
Transfer a balance. Some, but not all, 0% APR credit cards offer a 0% APR on balance transfers as well. So if you have lingering debt on a different credit card, you can bring it over to the new account. Pay it off during the interest-free period and you’ll save yourself a bundle in interest fees.
Practice good management. If you’ve had trouble with credit cards in the past, now is your chance to train yourself to use them wisely. Make a small purchase each month and pay it off right away. This will teach you to not carry a balance. And with the 0% APR as a backup, if you slip one month, you won’t have to pay steep interest charges to make up for it.
Enjoy the benefit. Chances are, if you apply for a 0% APR credit card and get approved for it, you’ll be able to use that benefit to your advantage in one way or another. Take some time to sit down and think about how to make the most of your new card. Doing so will help you come up with a plan. Follow the plan and you’ll enjoy the card, both during the 0% APR period and beyond.
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Three Things to Look for in a 0% APR Credit Card
Posted on 3/1/2009 - Filed under 0% APR Credit Cards
One of the best things that companies offer consumers these days is the 0% APR feature in a credit card. What this means is that you will not have to pay interest on the card’s balance for a short while after you receive the card. While this is a great choice, you’ll want to check out a few of the details before you send in an application for a 0% APR credit card. Here’s what to look for.
How long it lasts. This varies from card to card, and may even depend on your credit history and score. Typically, the 0% APR lasts from six months to a year, so anything in that time range would probably be considered normal.
What the regular APR is. This is also an important thing to look for, as it is what you will pay when the initial offer wears off. The regular APR may be low, average, or high. Make sure it is something that you can live with before you apply for one.
Other perks. The 0% APR feature is fairly common among credit cards, so it’s a good idea to see what else is in store before you get the card you want. Check for rewards or special deals that come with the card. Look through and find one that works for you in every way. Then the 0% APR at the beginning will just be an extra bonus.
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Use 0% APR Credit Cards during the Credit Crunch
Posted on 9/5/2008 - Filed under 0% APR Credit Cards
News of the credit crunch is working its way to more and more homes. You may have heard that banks are tightening their belts, which sometimes makes it harder for customers to secure a loan.
If you find yourself among the consumers that are looking for a small loan and having a hard time finding a lender, you might consider getting a 0% APR credit card. Unlike credit cards with high interest rates, 0% APR credit cards can give you a break on interest, and in essence, offer you a free loan.
Sound too good to be true? While 0% APR credit cards aren’t for everyone, they may be just right for you. The key is to use them wisely. First, you’ll want to understand how they work. Most 0% APR credit cards offer an initial period of no interest. During this time, which usually lasts between six and twelve months, you won’t be charged a dime of interest. This means that you can make purchases and then pay them off, interest-free.
Say you purchase an item for $1,500, and have a 0% APR credit card that charges no interest for six months. You can make payments of $250 each month for six months. You’ll save yourself plenty of money in interest by doing so. You’ll also enjoy the benefits of receiving a small loan and paying it back without any hassles.
It is important to note that the 0% APR time period will not last forever. Eventually, a regular interest rate will set in. When it does, the card will operate like other credit cards. Before you sign up, be sure to check what the regular interest rate will be. This will help you be prepared for it when the time comes.
When used wisely, 0% APR credit cards can bring valuable benefits to you, the cardholder. And with the current credit crunch, it may be a smart way to take out a small loan. If you pay off the balance during the interest-free period, you’ll save yourself plenty of money, while enjoying the extra perks that come with the card.
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