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0 APR Credit cards – The real Story

August 22, 2012

ETF

0 APR Credit cards – The real Story

In the age of cash back credit card offers, reward schemes and 0 APR Credit cards, one sees writers personal finance tips columns and other advisors getting inundated with queries from all over the United States on how to manage their credit card debt better, how to save on credit cards, how to find the perfect rewards scheme credit card, what are 0 APR Credit cards exactly, all this and more. The question we will deal with in this blog will be how exactly to find the best 0 APR card for you. Some common misconceptions will also be dealt with, and some queries solved.

To begin with, a 0 % APR credit card is a myth. IT is actually a credit card that will give you 0 per cent for a balance transfer.

That is what makes balance transfers different. Let us look more closely as to how exactly regular APR based credit cards and balance transfer cards differ from each other. There are a number of points which you will see are different.

First and foremost, in a balance transfer, you will discover that what you will get will be an introductory rate. As with all cash back credit card offers, you will get the introductory rate of 0 per cent for a fixed amount of time, a limited amount of time. How short that is going to be will depend on the bank obviously. It can be six months, to one year, or even a period longer than one year. This will differ from bank to bank, so  keep an eye on personal finance tips rather than getting confused. 

With regards to the Annual Percentage Rate or APR on the credit card that you are using, it is actually the interest rate that you will end up paying if the balance is not paid off in full.

There are a good number of instances were cash back credit card schemes backfired on the users. Let us look at it like this, suppose that you have a balance of $ 500 and your APR is 15 per cent. Suppose you pay $ 250. The interest rate will now be applicable for the year, and this will be spread over the months. The technicality is that this way, you will not be paying fifteen per cent per month.

Finding “0 APR Credit Cards” is not difficult. Almost every credit card that you can apply for will have one of these schemes. You may be able to add on the offer to a card you already use, but this is not always the case. It is best to enquire. Call up at toll free numbers of the bank and ask about the cash back credit card offers and 0 APR Credit cards. Also ask them for personal finance tips while you are at it.
The best cards that offers the best rate is what you will now be looking for. Actually there are a good number of card companies that have excellent promo offers. You can look into these, and see which saves money for you. Chase bank, Citi Bank and Discover are reputed and are known to provide some good deals. After all like the saying goes, “if you can not get it on loan, get it on balance”.

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