In a search for a credit card with low interest rates you may come across several mentions of credit card that charges you percent interest rate. This can statement leads the consumer to ask whether a 0% credit card really exists. The answer is yes 0% credit cards to exist but not in the wake that you might think. Credit cards that offer a 0% interest APR are usually talking about the introductory rate of interest. An introductory rate of interest is the interest rate that is applicable on a credit card in first sign up for it for the first few months which ranges typically from 2 to 12 months. Several major credit card providers offer a 0% credit card which includes:
Bank of America
So what are the biggest benefits of 0% credit cards? Are they all what they promise to be? What are the terms and conditions that come with 0% credit card during the introductory period? How to choose the best 0% credit card for your needs? There are certain things that you must pay attention to when choosing a 0% credit card for yourself.
Actual Rate of Interest
The introductory 0% interest rate will eventually end on your credit card. The interest rates that becomes applicable on your credit card once the introductory period is over is what you would eventually have a for the remainder period of time that you keep and use it credit card. It is quite possible that one of the introductory rate of interest is 0% the typical rate of interest is quite high. It could even be a flexible rate of interest. Not being sure of the interest rates that will come into effect after the 0% interest rate is over good at you in for a rude surprise.
0% interest rate credit cards are of a great appeal to people who are looking transfer the balance from a credit card that charges are higher rate of interest. However, you must take care to give attention to the other fees associated with a balance transfer. Many balance transfer credit cards that offer a 0% rate of interest during the introductory period charge a certain amount of fee which is the percentage amount of the balance being transferred. This percentage amount usually ranges from one to 5%. You should also calculate whether you’ll be able to repay the balance during the introductory period or not. Not being able to pay one the 0% interest rate is applicable means that you will need to repay the balance that’s the interest rate that comes into effect later on which may be higher than the credit card you are using currently. The best bet is to choose a credit card that not only offers the 0% interest rate on the introductory you time but also offers a reasonable rate of interest once the introductory period is over.
Look at Other Features of the Credit Card
Do not choose a credit card merely on the basis of the 0% interest rate during the introductory period. While this may be the single most important factor that you decide on the card different 0% interest rate of a different onus programs and reward points. Choosing between different 0% credit cards pay store on the reward programs is more suited to your lifestyle and needs could make the card more ideal for you. Different 0% credit cards offer different rewards such as free airline miles, cash back, retail points etc. If you choose the right rewards point for yourself you’ll find that you will enjoy using the credit card more even after the 0% introductory APR is over.