0 APR Credit Card
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APR is a financial term meaning Annual Percentage Rate. The whole idea of using a credit card is that you shop on credit thus you are like taking loans from the bank any time you use your card to pay for services or goods. So
APR is simply the annual interest rate or the interest rate that would be charged to your account over a year. This is why
APR rate is one of the important factors you should consider when applying for a credit card. Even a small
APR percentage may be dangerous as during time it will add up.
Getting a 0 APR credit card is not that difficult nowadays. There is a huge competition between the financial products currently available at the market. Most of the banks offer credit cards with no annual interest rate to attract more customers. However it might not be as good as it sounds. Banks offer 0
APR for certain period of time (usually for six months or a year only). Than the agreed annual interest rate (determined by the bank) applies – it might range from 13 percent to over 20 percent. Some banks apply 0
APR for new purchases only or for transferred balances only. Make sure you have read carefully all conditions and charges applicable after the zero
APR expires before signing your credit card contract.
0 APR can be very beneficial for people with large credit card debt as it is a convenient way to reduce it. You can apply for a 0
APR credit card when you have a balance which you are unable to pay off. Than you transfer your current balance and save money in interest payments. Some people who don’t manage to pay off the whole debt do this same exercise over again when the 0
APR period is over. They just apply for a new 0
APR credit card and transfer the remaining debt amount again. Tempting yet risky – this kind of financial “rope-dancing” would normally leave a negative trace in your financial history and might end up in bad credit score.
Most people are tempted buy 0 APR credit card offers without considering if this is beneficial in theirs circumstances. For example if you pay off your debt in full every month you will not incur interest charges. If you are not financial savvy arrange a meeting with a bank’s representative for a consultation. There might be other deals more suitable for you like reward points, cash back schemes, air miles etc.
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