Best Credit Tips: Save Money With A 0 Percent APR Credit Card
There are credit cards, and there are credit cards – and then again there is a 0 percent APR credit card. You may feel that with 0 percent APR, the credit card companies offering such credit cards need not mention the 0 percent – after all they are not charging anything. In fact, they do. 0 percent APR does not mean that this percentage will last indefinitely – as long as you possess the card. It means that they will offer you 0 percent of finance charges for a limited time.
0 percent APR credit card is a great marketing technique to draw people like you, interested in acquiring a new credit card, into their fold. They know that statistically they will be able to make money from you. Remember, there are no free lunches, and this promotional gimmick works this way:
Often, the 0 percent APR is applicable only to balance transfers. You still have to pay the charges built onto the card.
The 0 percent APR credit card is normally available for an introductory period of six months to eighteen months; following that the APR increases significantly. This period will be calculated according to your credit score.
The 0 percent APR lures you into taking cash advances on the card. These are later charged a higher APR.
This offer may also come with an annual fee for the privilege – nullifying any gain you may have foreseen. However, you can negotiate not to pay any annual fee. Negotiation is key!
How To Work 0 Percent APR To Your Benefit
Credit card issuers use the annual percentage rate (APR) to calculate what interest they should charge you. 0 percent APR means you only repay the amount due, and you don’t have to pay any interest or fee.
Enjoy such card but read terms and conditions! It will be very useful!
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