0% APR Credit Cards – How to Get the Obvious Savings and More

No matter what’s happening in the economy,  credit card companies want your business and a lot of lenders are still offering 0% APR credit cards.  Zero APR offers are for credit cards that don’t charge any interest for the first six to twelve months you use them.

Take a little time and do some research and you’ll probably find that your potential savings can go far beyond the obvious no interest charges.  And while you’re looking at the various conditions and agreements, thoroughly check them out because they can vary a lot from one lender to the next.

Here are some things to consider about 0 APR credit cards:

• Although an offer may look tempting at first glance see what they will charge you once the “honeymoon” is over.  It would not make any sense to jump into an agreement with a credit card company if you end up struggling to make payments because their permanent rate is so high.
• Many of these cards also come with cash back offers, points, and other types of rewards.  If your choice boils down to similar offers but one also gives you additional rewards, why not take advantage of it?

Some credit card companies might give you back a percentage of every dollar you charge on your card.  Or maybe you can accumulate points and then exchange them for merchandise or airline tickets.  There are a lot of different kinds of rewards systems out there.  Take a few moments to compare them.

• If you have credit cards that you’re paying interest on you might want to consider changing to a 0% APR credit card.

Most credit card companies and banks permit you transfer your outstanding balances from current credit cards to their 0 percent interest card.

Then, instead of making many payments you can make one monthly payment on your new card and save a considerable amount of money.

For example, if you’re paying a total of $150 in interest a month and you get a zero APR card with a 12 month introductory offer, you can save $1,800 in interest over the next year and pay down your balance while you’re saving money.

If you take this route, not a penny goes to interest, so every dollar you pay reduces your debt.

• It’s important that you read the terms of the offers because some lenders might charge you to make the transfer and while others may limit the amount you can transfer.

Most people try to pay off the entire balance of their credit cards before the introductory period is over so that they can keep their payments low for the long term.

But if they find that they’re running out of time and the introductory period is about to end, they start looking for other zero percent offers about a month before it happens.

Keep in mind that you cannot afford to miss any payments because most agreements state that if you are late for even one payment the offer becomes invalid immediately.

Source by Mike Irons