Advantages Of 0% APR Credit Card


Imagine getting a loan at 0% interest – that’s exactly what a 0% APR credit card offers to its consumers. The credit card companies offer these credit cards with an APR (annual percentage rate) of 0% which might appear to be unbelievable. However, this interest free period is normally only for a fixed period and this is known as an introductory period. Various credit card companies have different introductory periods such as six months or even fifteen months.

Benefits Of 0% APR Credit Cards

Although the credit card companies start charging high rates of interest once the introductory period is over there are many benefits of owning a 0% APR credit card.

If you have very high outstanding credit card balances you can minimize your interest payments by going in for a 0% APR credit card. By using a 0% APR credit card you can easily pay off some of your high interest credit card debts and be in a position to make your monthly payments on time. This will reflect positively on your credit report and your credit score will reach a high level. If you are a frequent traveler, owning a 0% APR credit card will provide you with immense benefits which might include bonus air miles to the tune of 25,000 miles as soon as you sign up and make the first purchase by using this card. The other benefits might comprise of free gas discounts, rebates while buying a car, and discounts on hotel rooms and meals. Many 0% APR credit cards offer cash back or rewards schemes whereby you can get back a certain percentage of the value of your purchases. In some cases you might even get up to five percent reward. You can benefit immensely by transferring the balances of your high interest credit cards to the 0% APR credit card. This would result in lowering of the total amount of interest liability and it would enable you to make your monthly payments on time. You would also be able to start paying off some of your debts and move towards a debt-free situation. A 0% APR credit card will instill confidence and discipline in you when you start paying off your debts and making regular monthly payments. You will be able to take control of your finances and avoid getting into the quagmire of debt in the future.

Along with the above benefits of using a 0% APR credit card, there is need to exercise caution regarding certain aspects of the same. It is advisable to understand the terms of the credit card especially with regard to the period of the interest free introductory offer and the applicable interest rate when this period is over, as many credit card companies start imposing a very high interest rate thereafter. All the terms and conditions of the 0% APR credit card especially with regard to balance transfers and various fees should be studied carefully before signing up and efforts should be made to utilize the interest- free introductory period to minimize your debts.


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