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0 APR Credit Card Truths and Traps (Page 1 of 2)
If you are struggling with ever-increasing credit card debt, a 0 APR credit card could be the magic wand for you. There are a number of 0 APR credit cards in the marketplace. These 0 Interest credit cards offer cardholders zero percent on new purchases and certain 0 APR credit card offers also allow balance transfers, lowering the interest burden even further.
The Truth About 0 APR Credit Cards
These types of 0 APR credit cards are offered by popular credit card lenders including American Express, Citibank, Chase, HSBC, and Discover. These cards have many benefits to offer if you have a good to excellent credit rating.
Keep in mind, that the zero percent offered with these cards is not permanent. It is an introductory rate and is typically offered for ninety days to as long as 12 months. At the end of the interest-free or zero percent periods, cardholders will have to pay a higher ongoing interest rate. Generally, these rates could vary between 10 % – 14% and sometimes can be as high as 24%.
A 0 APR credit card is ideal when you want to purchase something expensive but cannot find another way to finance it. There will be no interest charges for the in and you will have the introductory buffer period to pay off the expense. But buyer beware … make sure you can pay the purchase off before the introductory APR expires.
Most 0 Interest credit cards allow balance transfers from your existing higher interest cards and many will waive the transfer fees. This is one of the best methods to pay off debts at a faster rate, leading to substantial savings on the interest charges incurred.
It is possible that a single credit card can have multiple APRs including the following: 1) One APR for balance transfers, one for purchases, and one for cash advances the APR normally would be higher for cash advances compared to balance transfers and purchases. 2) Tiered APRs Different APR levels can be assigned for different account balance levels or tiers, e.g., 15% for balances between $1 – $500 and 17% for balances higher than $500, etc.. 3) Introductory APR 0 APR as the introductory offer and a higher rate upon expiration of the introductory period. 4) Penalty APR A penalty APR rate may apply if you are late with your payments.
The Traps to Watch Out For: A 0 APR credit card is an attractive proposition, and often is too tempting an offer to resist. However, it is essential to be informed about the often-untold catches in these lucrative offers.
1. The 0 APR is a Limited Time Offer In general, the 0 APR offered is only for a limited period. The period could vary from 3 months to 12 months. This implies that purchases made during this period will not attract any interest. You need to be cautious about the expiry period and remember to pay off before the period ends inorder to avoid hefty interest charges.
2. Once the introductory period is over, the 0 APR credit card may have a ridiculously high interest rate like 20% or higher.
Require Funds? Go apply for a low interest payday loans to get convenient cash.
It’s an incredible plus because of the availability of low interest payday loans for us. There commonly comes a time during a month in which you find yourself in trouble in between pay checks. During this period, you struggle since we have just spent our wage already however is still some days off from the next check. Once you settle payments, we usually get jammed in reduced means. If there is a unexpected need for cash then the rest of the budget will be in trouble.
You will find many websites in the internet that gives out this loan. Nevertheless this is already a benefit for you specially if this is the first time you will get a loan. It’ll be better for you to get the important facts about this loan. You will be able to know the prerequisites as well as the different payment ways. Additionally, you will have to know the background of the companies that give out the loans. Don’t just get a loan from the first firm which comes up during your search over the internet. People should ensure that you know the rates of interest as well as the best way you will go about with your financing. You also do not have to worry about your current credit status since this sort of a loan will not give a credit assessment anymore.
Payday loans are a good way to get emergency funds. The application for the loan is speedy and efficient. You may actually get the funds in as quick as a few hours to one day. It can be directly deposited to the account. You have to remember to patiently research the various lenders so that you know you’re buying from a credible one. This is a solution toward short term money problems giving you enough to get by without it becoming a huge bother to your budget once you need to settle it. And lastly, you should definitely find out about the different methods for you to cover the loan. This is essential for you to be capable to balance out your money to pay the loan and at the same time still have enough for your other bills at your house.