Martin Pelmore, 0% Apr Credit Card ? Coping With Your Finances<br><br><br> Credit cards are a big responsibility. When they are used
improperly, they can disrupt your future financial solvency and cause
you other cash flow problems. The more you know about credit, the more
likely you will use this powerful tool wisely. <p>
Nevertheless, credit card users nowadays are making a giant leap from
the typical shopping experience to a cashless shopping extravaganza. It
is very easy to get in over your head with credit cards. </p><p>
With the endless shopping convenience that credit cards can bring, more
and more people are encouraged to get credit cards and use them to the
maximum amount of the credit line. </p><p>
However, many people are reluctant to explore other credit card
choices. That is why, in spite of the credit card's popularity, credit
card companies have had to incorporate enticing promotional tools that
will hook customer?s interest to apply for a credit card. </p><p>
Among the many credit card offers dominating the industry today, 0%
annual percentage rate (0% APR) is the most common. Many credit card
users see this as enough of an incentive to make the switch to another
credit card. </p><p>
By definition, an annual percentage rate refers to interest rates that
are paid on purchases. The APR is expressed in a standard format to
allow comparison between credit cards. These interest rates are
reimbursement to the issuer of accrued expenses, in order to make the
loan to the borrower and other fees required. As you might imagine,
there must also be some profit for the issuer as well. </p><p>
Normally, 0% APR is provided during an introductory period by credit
card issuers. After that time , any balance on the card would accrue
interest until the debt is paid off. </p><p>
The Concept </p><p>
In an average credit card, annual percentage rate charges range from 6
percent to as much as 30%. Understandably, people would prefer credit
cards with lower annual percentage rates (APRs). </p><p>
This could be a daunting task for credit card companies that are not
well established to keep up with the competition. Hence, they try to
find another way of offering the same promotions, but with a new or
different twist. </p><p>
This is when 0% annual percentage rate comes in. </p><p>
Credit cards with 0% annual percentage rates are the most popular.
However, one should clearly remember that 0% annual percentage rate
does not last forever. In most cases, this offer lasts only for about 6
months. This is known as the introductory period. </p><p>
Credit cards with 0% APR work best for people who transfer their
current balances on other credit cards to the new credit card. Through
debt consolidation, 0% annual percentage rate works for the borrower by
cutting back monthly interest expense. It can also save time for the
borrower by making only one payment per month. The best approach would
be to try to pay the balance by the end of the introductory period. </p><p>
Statistical reports show that most of the charges that consumers pay
are focused on interest rate charges alone. The average interest rate
that the credit card owner pays is 18.9%. Keep in mind that late
charges can be charged if a payment is received by the credit card
company even one day late. This late fee can increase your expense, and
ruin an otherwise good payment plan. </p><p>
Hence, with 0% APR, consumers can definitely cut back on their
expenses, and use more of their dollars toward paying off their debts. </p><p>
So before you grab that dazzling offer of 0% APR on a given credit card, try to consider some factors first. </p><p>
1. Research </p><p>
If you have heard about 0% APR credit cards but do not exactly know how
it works, it is best that you learn more about it through research. </p><p>
Learn more about annual percentage rates and how 0% APR credit cards
work. Through research, you would be able to know that they only work
for 6 months and after that period, you can no longer enjoy this offer.
</p><p>
2. Read the fine print </p><p>
Indeed, 0% APR credit cards can give you more advantages than you can
imagine. Just remember to read the fine print. Many credit card owners
are blind-sided by expenses and fees after 0% APR has expired. Most of
the time this is because they have not read the fine print. The only
way to compare credit card offers is to read every part of the offer,
and understand it thoroughly. It you don't understand the terms or
instructions, call the company and get clarification. </p><p>
0% APR credit cards can be lifesaving packages; they can greatly reduce
your credit card expenses. However, they do not necessarily provide you
a lifetime advantage. You must make a plan to pay off the debt, and
stick to that plan, if you want to successfully use 0% APR credit
cards. </p><p>
</p><p>
Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information checkout and . </p><p>
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