0 APR Credit Cards – Avoid the Traps, Get the Facts

December 8, 2009 by  Filed under: Credit 

It wasn’t all that long ago that the 0 APR credit cards were being offered like candy in order to entice new account holders, and at the same time, to lure away customers from competitors. While they are nowhere near as prevalent as they once were just a few short years ago, they still can be found if you know where to look.

APR stands for annual percentage rate and is a calculation of the interest rate extrapolated throughout an entire year. It is the amount of money that you will be charged for using the issuers money. And a cardholder uses the creditors money whenever they carry a balance over from one billing cycle to the next.

Now this may be obvious to the vast majority of people but I must state it nevertheless; 0 APR credit cards are only good for a specified period of time. They are granted as introductory offers, usually in the span of 6 months or 12 months. Many times they are also accompanied by the 0% APR balance transfers.

I feel it is important to point out that far too many people get caught up in the fact that they don’t have to pay interest on their purchases and end up getting themselves into financial trouble because of it. We have seen time and again introductory rates expire on cardholders and all of a sudden when the interest rates begin to accrue their monthly bills skyrocket.

This can of course be easily avoided by simply familiarizing yourself with the terms and conditions of the offer before you apply. It is imperative that you know exactly what the interest rate will be when the intro period ends. Of course, if you pay your bill in full every month you don’t have to worry about it because you’re not going to be charged any interest.

In addition to interest rates, when comparing 0 APR credit cards you also want to take a look at the fees that will be charged. Banks and financial institutions are becoming more and more aggressive when it comes to charging their customers fees because they need to make up lost revenue from a record high number of defaults and credit card legislation that’s curbed their ability to raise interest rates on account holders.

If you are in fact a disciplined individual another great thing zero APR credit cards are good for are large ticket purchases. It really is a grace period that allows you to slowly pay off big ticket items. Just make sure that you will have it paid off in full by the time the introductory period ends and you’ll eventually come out ahead. It’s like borrowing money for free.

To compare 0 APR Credit Cards and Apply for a Credit Card online we highly recommend BestCreditQuote.com.

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Morgan Hamilton - EzineArticles Expert Author

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