0 Apr Credit Cards: No Interest Rates For A Limited Period

2007-03-08 10:33:40

( Financial )



The term APR refers to the annual percentage rate that is charged in addition to the money that is borrowed. By law, credit card companies are responsible in informing their customers of their APR so customers are aware of how much money they will owe to the credit card company.

Most people are attracted by establishments that offer 0 apr credit cards. This is especially helpful to those that own credit cards with high interest rates, and have an existing outstanding balance. One can apply for a balance transfer with 0 apr credit cards, and pay off their debts more quickly in installments each month with no interest.

Though this may be appealing to some, there are a number of factors that one should be aware of: a 0 apr card offers you no interest for only a certain period of time: usually 6 to 12 months. Should you fail to make any payments within the specified time period, high interest rates are charged along with late payment penalty fees. If one decides to transfer the balance of their existing credit card to a 0 apr card, there are also high balance transfer fees involved. It may be a better idea to maintain the balance of your existing card just in case payments cannot be met. You may end up having to pay a higher interest rate than what you originally are paying for with your current credit card if you don’t meet the 0 apr card payment scheme.

You should ensure that when applying for 0 apr cards, you have read all the terms and conditions on the credit card agreement before signing your application form. You should carefully note the interest rates that are charged at the end of the offer, whether balance transfers are accepted, or whether these 0 apr cards only accept new purchases. Taking note of the maximum payment period for the time that they charge no annual percent interest rates can be helpful when trying to plan out the monthly payments or amortizations that are to be made, and whether they can be met. It should also be noted that transferring the balance of your credit card to other credit cards could affect your credit score.

It is strongly advised that you ensure the timely payment on 0 apr credit cards in order to save money, and that you carefully study what the long term costs will be prior to applying for apr cards. You should only transfer an amount that you can pay off easily, so as to avoid the high interest rates as a result of non-payment.


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