Cards 0 apr: Fact or Fiction?

2007-06-20 15:49:53

( Financial )



If you are searching for an opportunity to avail of a new credit card then clearly 0 interest credit card holds a lot of appeal for you.

Whether you admit it or not, credit cards with zero percent apr attracts you interest. Yet, one would still wonder whether 0 percent apr credit cards are indeed true or just a bogus.

In reality, cards 0 apr is both real and bogus. In a certain degree, zero apr credit cards are true to their word, however, in practice, zero percent interest is not applied long term. Chances are, it could be some promotional gimmick which could only be good for a certain period of time and afterwards an increased rate of interest will now be charged.

The Advantages of a Zero Percent Credit Card

0% interest credit card is helpful if you already have amassed a huge credit on your other credit cards. Such credit cards have a way of assisting credit card holders with a huge outstanding balance on their credit card. A 0 apr gives users the chance to trim down their credit, and with 0 apr credit card they can likewise avail of reasonably priced cash advances, which in a way can consolidate huge APR credit. However, these features are bundled with additional fees and APRs.

Disadvantages of Zero Percent

*The majority of 0 cards 0 apr offers no interest within a pre-arranged time frame, which may range from six to twelve months.

*If you’re considering balance transfers from another credit card with an increased interest, a card 0 apr may not even let you to perform a transfer within the promo period.

*A cards 0 apr may likewise charge costly fees on balance transfer.

*A few of these no interest credit cards likewise have huge interests for default in payments and immediately converts you to a flexible APR rate for the default.

*Other cards 0 apr charges an extremely costly rate of interest at the end of the promo period.

Indeed, the picture is certainly not that bleak. While it is clear that savings on your money can be assured by using a cards 0 apr, not utilizing them extensively can likewise be a costly decision. So be smart in choosing your cards 0 apr.


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