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Title:

0% APR Credit Cards - Tips & Tricks


Word Count:
794
Summary:
This article directs the attention of customers to 0% APR credit cards and tips
and tricks to be aware of.
Keywords:
0% APR Credit Card, 0% APR Credit Cards
Article Body:
Credit cards can be considered to be one of the many basic necessities of the mo
dern world. Credit cards are available nowadays in abundance. One type of credi
t card specifically is the so-called 0% APR credit card. 0% APR credit cards wer
e introduced in the late 1980 s and to this day has still proven to be one of the
most sought-after credit card types available anywhere. As with all credit card
types, there are a certain tips and tricks surrounding 0% APR credit cards that
all potential card applicants should be made aware of.
With the help of a 0% APR credit card, it means that you need not only pay the o
utstanding balance; and what more you could even charge up to the limits without
having to sustain any monthly interest charges. However, sometimes, one tends t
o think just how these credit card companies can afford to provide 0% APR credit
cards, and make a profit out of it?
Although 0% APR credit cards may not comprise any monthly charges, it is sure to
come with annual fees which you are obliged to pay for the privileges of a 0% A
PR credit card. These annual fees usually run from $15 to $20 or sometimes, even
higher. Having a 0% APR credit card doesn t mean that you can pay your dues whene
ver and whichever way you intend to. It IS necessary to make your payments on ti
me, or else, you will have to pay for high overdue fees. For each late payment,
the 0% APR credit card holder has to pay fees that may range from $20 to $40. Wi
th habitual late payments, these meager amounts may accumulate to a hefty total!
It should be remembered that 0% APR credit cards are usually offered for only a
stipulated period of time. This credit card interest may hold good for only a fi
xed period of time, usually ranging from 3 up to 15 months. On the completion of
this period, a higher rate of interest may come in vogue, usually 12% or higher
. You could easily transfer any existing credit card balances to a new 0% APR cr
edit card to get 0% interest on the transferred balance. In this way, the credit
card holder has to pay less interest for a stipulated period of time, and thus
get a chance to clear outstanding balances as quickly as possible.
When applying for a 0% APR credit card, it is always better to read the terms an
d agreements of the credit card. Not to overstate an obvious question, but why
should one do so? Simply because many credit cards may come with a default rate
wherein late payments not only incur a late payment fee, but it would also inclu
de a default rate that will be added to the annual percentage rate. This in turn
doubles the figures on the existing balances and on the new purchases made on t
he card moving forward. Ouch!
One very important point to take into account when applying for a 0% APR credit
card is to read all paragraphs of the agreement, otherwise known as the fine pri
nt. This is because though it is illegal for a credit card company to hide their
fees and charges, it is nonetheless legal for them to mention these points in s

mall print! The 0% APR credit card companies thus usually announce in large and
bold print about their 0% APR but hide the facts that this is only for a limited
period of time and any extra fees which might be included are done so in very f
ine print.
Another trick that is up the sleeve of 0% APR credit card companies is to instal
l sky-high APR s right after the amount of 0% APR balance transfers are paid down.
In other words, the money you first pay to the credit card company is applied t
o the transfer, and any other purchases you make will be charged a high APR. Som
etimes, credit card companies may also go to the extent of sending you a differe
nt card than the 0% APR credit card you had initially applied for. In this way,
you are not allowed the 0% APR but a different card offer with different terms
and conditions. The card issuers typically rationalize this behavior based on th
e card issuer determining that you do not meet the qualifications for a 0% APR c
redit card. Qualifications for a 0% APR credit card is usually found in the smal
l print of the agreement, and is usually overseen by applicants!
It can thus be seen that though 0% APR credit cards do seem to be rather invitin
g, there are some loopholes and tricks to their use. As always, it is highly rec
ommended to read the terms and conditions on the card application agreement for
the 0% APR credit card, or any type of credit card application, thoroughly in or
der to avoid any future problems, headaches or financial surprises.

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