The convenience of using a credit card has made its use very popular. An offer 0% APR Credit Card was introduced so that more and more people got into the credit card mode by being induced with interest free loans for a fixed amount of time. Credit cards are now being used increasingly in order to purchase goods and to pay for utilities and services. The biggest advantage of a credit card is that you don't have to carry a lot of cash in your pocket when you go out to buy goods for everyday use.
However, with the increased popularity of the credit cards, the tendency to overspend is also on the rise. People are spending frivolously without realizing that they have to ultimately pay back the loan that they are incurring on the credit card whenever they use it. The amount of expenditure sometimes exceeds the paying capacity of the credit card user. As such, it is essential that those people who are capable of managing their finances only use the credit cards.
0% APR credit cards are now being offered by banks and other lending institutions with the special provision that there is 0% APR or annual percentage rate which is the total cost of borrowing for a fixed amount of time. There is no interest charged on the loan incurred by use of the 0% APR credit card during that time. This offers many advantages to the user of the card.
Advantages Of Using 0% APR credit Card The biggest advantage is that you don't have to pay any interest on the loan, which you incur when you purchase anything with the 0% APR credit card. This is valid for a fixed amount of time and after the expiry of this period, the credit card company imposes a certain amount of interest rate.
It is essential that when you use the 0% APR credit card, you should try to pay off the debt within the stipulated time period especially because there is no interest involved. A little bit of financial discipline will enable you to do so. Paying off your debt on time will automatically reflect on your credit rating, which will improve significantly. Paying off your loan against the use of a 0% APR credit card will also instill a lot of confidence and financial discipline in you so that you will get habituated to paying off your loans on time in future.
Balance transfers can also be made very conveniently with 0% APR credit cards. Since the element of interest is not there, it will become very easy to pay off the high interest-credit card debts or transfer them to the low interest rate ones or to the 0% APR credit cards. This will enable you to pay off your debts with ease and become debt free in a very short time. The only precaution that you have to take is to plan out the elimination of the debts during the interest free period of the 0% APR credit card. The interest rate applicable after the expiry of the above time period might be very high and not at all conducive for paying off debts.