Title:
Is A 0 APR Credit Card Legitimate?
Word Count:
516
Summary:
This article describes the existence of 0 APR credit cards in the marketplace.
Keywords:
0 Interest Credit Cards,0 APR Credit Cards,0 APR Credit Card
Article Body:
You see all the ads for 0 APR credit cards all around you today. However, are they for real? The truth is
yes, they are for real, however, this special 0% APR does not last. You can find all kinds of credit card
companies offering a 0 APR credit card for people with excellent credit. Many credit card companies are
now offering 0 APR credit cards as part of their incentive program to get you to apply and begin using their
credit card for all their purchases. However, there are downsides to some of these offers.
Although they are advertising a 0 APR credit card, the 0 percent APR is not for the entire time that you are a
cardholder. You will have to pay close attention to learn how many months they are offering this “special
0% APR”, you can find them for 3 months, 6 months, 9 months, 12 months and if you are lucky for 15
months. However, now you must check if the offer also includes all new purchases and balance transfers.
One company may offer 0% only on balance transfers. If you are using one of these 0 APR credit cards, you
will find that you will have to pay the normal interest rate for all new purchases and all money that you pay
monthly will be for paying off the original balance, so you will get stuck paying the higher interest rate on
your purchases.
It goes something like this … say you did a balance transfer of $5,000. This money will not incur finance
charges. But then you make a purchase of $1,000 and this money will incur finance charges. You then pay
off the $1,000 before you think you will incur any finance charges, however, the $1,000 is applied against
the original $5,000 balance transfer. So now you will have $4,000 on the original balance transfer without
any interest being charged but the $1,000 in additional purchases is being charged the regular APR, which
tends to be pretty steep. Therefore, you may find that it really was not worth the money to use this 0 APR
credit card after all.
Another downfall to the 0 APR credit card is that if you do not pay off the entire balance transfer before the
introductory offer expires, you may find that you are paying a higher interest rate than you were with your
other credit card. Reading all the terms and conditions can aid you in making an educated decision about a 0
APR credit card and whether it is for you.
As such, many of the 0 APR credit cards may sound appealing, however, after the introductory period ends
on these offers, the ongoing interest rates and other fees tend to be higher than average, so you may find
yourself between a financial rock and a hard place. Just because you can find a 0 APR credit card and get
approved this does not mean that you are necessarily going to enjoy a financial life of luxury. Remember,
however, there are other fees that are applicable so the credit card issuers are still making tidy profits with
annual membership fees and fees for balance transfers. So as usual, it always pays to read the fine print.
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