** Zero Interest Credit Cards Tip of The Day **

Facts About Zero

Interest Credit Cards

If your credit card debt is just getting worse and worse, you should find out more about how zero interest credit cards can help you. You can find a lot of different offers for zero percent credit cards. The way these 0 interest credit cards work is you pay no interest on new purchases and balances you transfer over for a short introductory period. This allows you some time to pay off your debt without interest.

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What You

Need to

Know About

Zero Interest

Credit Cards

Many of the well known credit card companies have offers available for 0% APR (Annual Percentage Rate) credit cards including Discover, Chase and American Express. If your credit is good, you can benefit from using one of these zero percent credit cards.

The thing to remember is that the 0 interest credit cards won’t have the 0% rate forever. The 0% APR interest rate is offered for a short time only, usually from 3 to 12 months. When this 0% interest APR is over, the interest rate goes back up to the higher rate the credit card companies usually charge. This rate after the 0% introductory interest rate can be anywhere from 10% to as much as 25%.

If you are going to make a big purchase and want to pay it off in a short time, getting a 0% APR credit card and putting the purchase on there is a good idea. You won’t be charged any interest during the introductory period and you can pay off the debt over time. Just make sure you actually do payoff the whole balance in the time period given or you will eventually pay a much higher interest rate on the balance.

The majority of zero percent credit cards let you transfer outstanding balances you are paying a higher interest rate on, and often you can do this for free. If you have debt to pay off, you can pay it down a lot faster if you have it on a 0% APR credit card because you aren’t paying interest on the balance every month.

The APR May Not Be the Same in All Cases

with Some Credit Cards. For Example:

1) There may be one APR for balance transfers and a different APR for cash advances with the APR for cash advances being a higher rate than the one for credit card balance transfers.

2) The credit card APR rate may depend on how much you owe. As your balance goes up, the interest rate may go up as well.

3) The zero percent APR rate is often a rate that is only good for a short period before the regular APR rate takes effect.

4) If you pay late, your APR may change and may go up and you may incur fees as well.

Filed under: Facts About Zero Percent Credit Cards

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