Do you want to be able to transfer credit card balances without paying interest? If so, then 0 APR credit cards are the way to go.
These are cards where, the first few months of use, you are not subject to interest rates, hence the 0% tag.
However, after the time limit is up on these, the rate goes up to 10% or higher, even as much as 20%.
There are many kinds of 0 APR credit cards, each with their own benefits.
Some of these may include benefits such as cashback programs or theft protection.
Others may have the 0% annual percentage rate last up to ten or fifteen months.
The amount and types of benefits on them will vary depending on the company that makes them.
What is the main reason why people apply for 0 APR credit cards, some may wonder.
Because of the fact that they do not have a percentage rate until the time limit has expired, they are great for short-term money saving.
The reason for this is that whenever a person has to pay off their balances, it is subject to an interest rate.
With 0% interest for a few months, paying off your balances will be much cheaper.
An example of saving money with 0 APR credit cards in the short term would be having to pay off 3000 dollars.
With a normal card that has a 12% annual rate, a person would have to pay an extra 360 dollars by the end of the year.
When there is a 0% a rate for twelve months, which becomes a more normal 15% charge afterwards, a person would pay nothing at the end of the year.
It only works for the specified time limit, however, because afterwards the credit card reverts to the normal advertised figure.
It may even have a higher percentage than other financial products that a person may own.
Getting 0 APR credit cards is a good idea if a person wants to save some money in a short time, such as when transferring balances.
The time limit on most of these for the 0% annual percentage rate lasts a few months.
Therefore, a person would only want to use them for short term paying off of balances, because they revert to the standard charge with higher annual rates after the time limit is up.