0 CREDIT CARDS, ANYONE?

2007-03-08 10:33:40

( Financial )



If you are having problems coping with heavy interest rates on the credit cards that you currently own, perhaps it is time to consider looking into 0 credit cards.

0 credit cards are credit cards with 0% annual percentage rate (APR). This means that a 0 credit card does not accrue interest.

Credit card companies usually offer 0 credit cards so you will transfer your business over to them, like chase visa cards. Credit cards with 0% interest rates are useful, but you must be aware of the terms and agreement that you sign up for in getting these cards. 0% interest is not a lifetime guarantee. You should check the non-introductory APR on your card. Nevertheless, 0 credit cards are great if you are starting to build a credit history or if you have multiple credit cards as of the moment.

If you are just starting to build your credit, let's say your a student who's about to get his first credit card, you would probably get an introductory rate of 0% APR fixed for up to 12 months. This means that you will be able to use your card free, if you pay before the due date and you do not exceed your credit limit. You do not have to worry about keeping your account at zero balance until after 12 months, which means you can still afford a revolving account especially if you are short on cash.

If you have multiple cards at the moment, 0 credit cards are invaluable. What you should do is simply transfer your outstanding balance from your other accounts to your 0 credit cards, and you can start saving on the interest rate that you shaved off, and start paying off your debt as well.

Accordingly, 0 credit cards can actually help you get back on your feet and work on your finances, or start building a healthy credit history. Just make sure that you have read the terms of the credit card so that you will not suffer a heart attack a year later when you see 19.9% variable interest on your bill.


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