0% APR Credit Cards

Learn What It Means To Have a 0% APR Credit Card And How To Use It Responsibly

Do You Need a Credit Card?

Credit cards can have a two-edged sword effect. While they can provide a means of securing the kind of cash you don’t necessarily have on hand to put towards certain types of purchases, they can also become a trap that snares you with mounting monthly payments and climbing interest rates that make repaying the debt seem to be an almost impossible feat. Certain credit cards will attract customers with a strategy such as by offering a 0% Annual Percentage Rate (APR) that will last for a certain amount of time and will apply to certain types of credit card transactions.

Know Before You Go

Before you agree to opening another credit card, even one that offers a very attractive 0% APR, make sure you read the fine print – the “Terms and Agreements” sections that are included somewhere on the mailing. Often times these cards will make a loud offer of one type of deal, such as by offering an “annual” APR of 0%, when the real term of the 0% APR only applies to certain types of transactions. For others, there will usually be a totally different APR and this one can be quite high. So, when you open a credit card account that offered you a 0% APR, you may be surprised to see that the APR you are paying is actually not the 0% one you were promised, just because you made a purchase or somehow changed the financial agreement you initially made. Usually, in the fine print, the changes that will be made based on your other financial transactions with the card are listed, however, you must read them otherwise you will be in for a big surprise.

The Responsibility of Nothing

Although a 0% APR credit card may seem to be a great way to pay down debt, such as through a balance transfer, there are certain things you can do to lose that great APR if you don’t use the credit card responsibly. One of the things to keep in mind with a 0% APR credit card is that you must make your payments on time. If you are late with one of your monthly payments, the APR will usually skyrocket upwards of 20%. This is stated in the fine print, however many people don’t realize it until after they have lost their 0% APR. Also, you will need to be careful about what kinds of purchases you make with the card as certain types of transactions will not be covered under the 0% APR agreement.