Finance

Is zero percent credit cards useful?

It is important to understand what zero per cent credit cards is and how it works before applying for one. When a credit card offers 0% APR, it means that the consumer does not have to pay interest on your purchases for a specific time period, which differs from card to card. This is called the introductory period which is usually from 12 to 21 months. Otherwise you are charged with interest rate every time credit card is used. In some conditions, it is possible to get 0% interest on balance transfer, for this purpose you have to get a specific credit card. 

Like every other card, 0% credit card to comes with terms and conditions. The zero percent credit cards can be cancelled if the consumer violates any terms and conditions, such as failing to pay the credit amount by its due time. 

When you think of buying a 0% credit card, consider the length of the interest-free period mainly beside other factors like balance transfer offers, rewards and standard APR. 

If you buy an item during zero per cent period, the interest rate will be charged after it ends, for example, if you make a purchase 8 months into 15 months 0% period, 7 months are interest-free. After that, the interest is charged on any remaining unpaid balance.

Interest rate and APR are two different things. Interest rate is the price that you pay for borrowing money by using a credit card.

While APR or Annual Percentage Rate is the total cost of borrowing money which encircles the interest rate as well as other fees you may face. 

You are blessed to find good promotional introductory 0% credit card offers on favourable terms which may save you a lot of money in interest every year. 

If you plan on purchasing a 0% interest-free card, must have an outstanding credit score. If you do not have a perfect credit score as per credit issuers requirements, you should work on improving it by paying off bills regularly and using your card wisely. If you pay your monthly bills on time, which is by the end of the grace period, you are not entitled to any interest charges. The grace period is the time when you receive your bill till next 21 to 25 days.

Look for opportunities of qualifying for a new zero per cent credit cards and contact the company you are already working with. 

Most of the credit cards offer 0% intro APR on all purchases and balance transfer with a small fee. The amount of fees and zero free duration differs from card to card. 

A person having to pay big loans along with high interest, transfer balance credit card is a blessing and powerful tool to pay off your credit card loan. The 0% intro APR allows you to get rid of most of the loan by transferring your balance on another card, hence saving a lot of money in interest. 

The trick is to use your zero per cent cards wisely and start with paying off your high-interest debt first.

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