0% APR Credit Card Benefits
There is nothing as fine as saving money with a 0% APR credit card. These no interest rate cards allow you to spend hundreds less each year in interest.
It Is Not All About The Interest
You will see many lenders these days offering 0% APR credit cards. If you are thinking of applying for a 0% APR credit card, it is well worth taking the time to research and compare all the offers and benefits available. Although many companies offer 0% interest cards, in most cases it is for an introductory period only. You should take the time to compare the agreements and conditions carefully, as these vary considerably from lender to lender. It’s also important that you take into consideration the permanent rates that the lender charges. While 0% interest credit cards may look tempting, it’s no use entering into an agreement if you struggle to make payments because the permanent rate is too high.
The benefits of a 0% APR credit card may seem obvious, you don’t pay any interest! Many of the 0% interest cards also offer other benefits. Some come with reward schemes like rebates, others with cash back offers. The reward scheme applies to your purchases, where the lender may give you a percentage of cash back for every dollar you spend. They may also have a reward scheme where you can accumulate points depending on how much you spend. These points can then be exchanged for merchandise, statement credits, or even cash back. While the points on offer are strictly in favor of the card company, you can still benefit.
Lower Your Debt Faster
If you are paying interest on your current card(s), why not think about changing to a 0% APR credit card? If you have a few cards, the monthly payments can soon become a considerable sum. You can save yourself money by changing to one of the 0% interest cards. Just think, instead of paying out maybe $100 or so a month in interest, you could be paying out a lot less while reducing the amount you owe.
Most credit card companies will allow you to transfer the outstanding balance on your current card to one of their 0% interest cards. That means you could consolidate all your outstanding balances on your current cards by transferring them to your new 0% APR cards. Some lenders may have a limit on the total money you are allowed to transfer. It’s important that you read the terms of the offer and understand them fully before committing yourself. You don’t want to be penalized by any fees you may have to pay if transferring a balance.
The new lender may have a time limit on their 0% interest credit cards. If you want to keep your payments low, or keep reducing your balance, then you should think about transferring the balance before the 0% APR credit cards offer runs out. It is worth checking your agreement at this stage just to make sure you will not incur a fee for transferring your balance to another card.
If you’ve done your homework and chosen the correct card, this shouldn’t be a problem. You should start to look for your new 0% APR credit card a month or so before your offer terminates. This will give you time to apply and be able to transfer your balance as soon as your 0% interest credit cards offer ends.
Don’t Miss Out
There is an important fact about a 0% APR credit card that most people overlook. Most agreements state you must make ALL your 0% APR credit card payments on time. If you make a late payment on your 0% interest credit cards then the offer becomes invalid immediately.