Most credit card companies use the 0% APR credit card to entice new customers by offering interest free credit card usage for a fixed period of time. It is obvious that no lender can survive without earning money by way of interest or by charging other fees. Various credit card companies, therefore, use the introductory periods for offering interest free loans and after the expiry of this period; they increase the interest rates in order to make up for the previous loss.
How To Get the Maximum Advantages from the Card The 0% APR credit card can be used to great advantage by those who are just entering the credit card scene. However, in order to avail of these advantages, it is necessary to find the right 0% APR credit card plan by understanding the various implications of the terms and conditions of such credit cards. Since the introductory period has to come to an end, sooner or later, it is important to be aware of the interest rate and the APR that will be applicable thereafter. The APR or annual percentage rate as used by the credit card companies is a comparative indicator of the current interest rates being charged by various lenders.
In order to assess a loan rate, it is necessary to distinguish various other associated factors such as insurance and other fees and then find out whether you are getting a good loan rate. The credit card companies have their own set of rules including introductory periods when they offer 0% APR Credit Card with no interest for that period and an increased rate of interest once the introductory period is over. The no-interest offers should not tempt you but you should investigate the period of this introductory offer and then find out exactly what lies in store for you when this period expires. It’s important to remember that you are the customer and that you can make your choice in this competitive market.
And From The Credit Card-Balance Transfer Using your credit card to make frivolous purchases can be a disastrous spending habit. This can lead you to a financial mess because you might find it difficult to make the monthly payments and thus land in a deeper debt crisis. Instead, you should exercise self-discipline in altering your spending habits and paying your monthly bills on time. By doing so, you will be able to gain from transferring your credit card balances.
The biggest advantage of credit card-balance transfer will be the chance of reducing your monthly payment amounts which, in turn, can give you the opportunity to either reducing your debt amount or creating an emergency fund. It is also necessary to discard old credit cards and only use the new low-interest cards. There is nothing better than minimizing your spending urges in order to build your reserves and eliminate debt. While transferring the credit card balance it is important to transfer the maximum amount of the credit card balance that has the highest interest rate. Using a 0% APR credit card is a good initial step as long as you do your homework correctly.