Could A 0% APR Credit Card Benefit You?

By: Shelley Green

When you take out a new credit card with 0% APR (Annual Percentage Rate) the introductory period offering the 0% APR is normally between 90 days and 15 months.

When you take out a new airline miles credit card, most of the time you will get bonus miles of the first purchase that you make. Also you won't normally get an annual fee for the first year and you will get 0% APR on balance transfers and also purchases made during the first year of having the card. All of the above sound very nice but you also need to consider being able to afford the cost of maintaining the credit card after the 0% APR finishes. The annual fee could rise to as much as $75 and also the interest could be 17% or higher. It is very important to make sure that you understand the benefits of either getting free miles up front with the other incentives against the cost of keeping the card going after the first 12 months.

One of the better ways to pay off your credit card debt is by budgeting your monthly expenses and planning an amount each month to pay off of your credit card. You could move some of the outstanding balances onto a 0% APR credit card which would help as well while you pay with monthly instalments as you will not be accruing any more interest to what you already owe.

If you have a high credit score then it should not be a problem getting a new credit cared with a low APR or 0% APR. There are a lot of credit cards nowadays that offer 0% on balance transfers for the first 6-12 months This would save a small fortune in the long term.

When thinking about a card there is more to think about than just the 0% APR that the company is offering. I am not saying that 0% APR is not a very good deal, but you need to look at how long it is for and what other benefits are available. For instance, there are some cards that offer fantastic reward schemes and also a grace period, which is normally around 20 days. You may be able to earn points when you shop, this is a good idea if you do your weekly shopping on the card and also are able to pay the card off in full each month.

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