0 APR credit cards have gained in popularity over the last 15 years. They were initially introduced as a gimmick to lure more clients but have now become a norm with most card issuers. Getting credit at 0% annual percentage rate certainly looks like a viable option when you consider the high rate of interest, which these companies charge. But do they really save you any money? Let us look for some answers on this subject.
If you are using a credit card, the best way to save money would be to pay off any outstanding bills before the due date. Unfortunately, not many people adhere to this golden rule leading to high interest rates being applied on the account. These are the people that would benefit the most with a 0 APR credit card.
Can you really save money by using such a card? The answer would perhaps be a resounding yes, if you are offered a card and manage your finances to stay within the terms and conditions mentioned. A typical 0 APR credit card would make you an offer for balance transfers from any other card you own for a short duration, charging you no interest at all. However, you would be required to clear the balances with the introductory period failing, which you would be liable to pay regular interest charges. They will charge you a one time fee for any transfer you make from other cards, which you own.
You must also ensure that you have understood the terms under, which the card has been issued. A 0 APR credit card may offer you the option of balance transfers at no interest for a short period but may charge a higher interest after the introductory period is over. You can in all circumstances opt for such a card if the regular rate of interest on the card is 3% below the current benchmark. If not you could end paying a higher amount than originally bargained for.
If you are unable to manage the current outstanding balance on your card and feel that a 0 APR card is a better option, do opt for one. However, ensure you are prepared to make some sacrifices and a reduction on expenses to save enough money to pay off the balance transfer before the introductory period is over. Do not, even for a single month default or delay any payment, which is due. You will be in for a surprise if you ever ignore this aspect of the card.
The author has spent a lot of time learning about 0 APR and other related topics. Read more about 0 down home loan at Vincent O’Neil’s website.