0 Apr Credit Cards
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A 0 APR credit card can help people tide over their credit card debt within a specified timeframe without paying any interest. Credit cards are issued on interest rates that a card holder needs to pay on a monthly or daily basis on credit balances or cash advances taken on the card. Although interest rates vary from card to card, most credit cards in the US are charged an annual percentage rate (APR) compounded daily or monthly. A 0 APR credit card enables people to take credit or make purchases through their card without any interest rate being charged on the amount.
A 0 APR credit card can help people tide over their credit card debt within a specified timeframe without paying any interest. Credit cards are issued on interest rates that a card holder needs to pay on a monthly or daily basis on credit balances or cash advances taken on the card. Although interest rates vary from card to card, most credit cards in the US are charged an annual percentage rate (APR) compounded daily or monthly. A 0 APR credit card enables people to take credit or make purchases through their card without any interest rate being charged on the amount. These zero percent credit cards are usually issued as an introductory offer to attract new customers. This is usually valid for a specific timeframe, which can range from six to twelve months.
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0 APR Credit Card: Issuers
Zero percent credit cards are issued by:
- Financial institutions
- Banks: By issuing credit cards, banks not only expand their customer base, they also generate substantial revenues. Moreover, credit cards provide banks the opportunity to cross-sell their other services.
0 APR Credit Card: Benefits
Through the no annual fee credit card, one can:
- Borrow money without paying any interest.
- Consolidate outstanding balances on various credit cards by transferring the amount to the no annual fee credit card. One can then spread out repayments over the period that the zero percent APR offer is valid on the credit card.
Things to be Aware of When Opting for a 0 APR Credit Card
While zero percent APR credit cards are highly attractive, it is important to look at the fine print. Card issuers change the APRs on the basis of the Federal Reserve Rate. The card holders get to know about the changes only after they receive the bill, which means that card holders should stay abreast of any rate changes. Zero percent credit card holders should also:
- Check the fine print. A higher APR might be charged if the card holder does not fulfill the requirements for receiving the 0% rate.
- Identify the situations where zero interest rate will not be applicable. Check out if the APR will rise significantly if you fail to make a payment on time.
- Find out the validity of the 0 APR credit card offer and the APR that will be applicable thereafter. Usually the APR charged after the initial period is quite high.
- Verify the APR that will be applicable on any cash advances taken on your credit card. Most often, the APR on this amount is higher than the rate quoted by the credit card companies.
- Search for information that clarifies your liability in case of loss or theft of your credit card. Although several credit card companies advertise that you would not be held liable, you might be implicated if you have not met certain requirements specified in the fine print.
