| Best Types |
| Written by Brain Summer | |
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A zero APR credit card is one of the best types of credit cards to have in your pocket. It provides you with the ability to borrow money from a credit line and not have to pay any finance charges for doing so. The good news is that these credit lines are available to many people. Yet, it is important to note that most of them are just temporary or introductory offers. When you have an opportunity to use these types of loans, though, you definitely want to do so. Credit cards with no APR have a design to work for you for some time, and using them could help you to save thousands of dollars. What Are They?0 percent APR credit cards are credit cards that do not have an immediate interest rate assigned to them. Typical credit cards do have an interest rate, ranging from just a few percentage points, up to 28 percent, sometimes more. Interest rates are the way that the credit card company makes money. They charge you interest on the amount of money you borrow as their fee for using their service. These rates vary depending on the quality of credit you have, specifically on your credit score. The higher your credit score is, the lower the credit card interest rate will be. However, you may ask, why would any lender not charge any credit card interest?The most common reason for zero percent APR credit cards is as an introductory offer. For example, you may get an offer for a 0 percent APR for the first 12 months. This means that during the first 12 months of working with the lender, they will charge you no interest on borrowing the money. If you carry a balance from month to month, this type of offer is excellent because it means not paying anything for the first few months. Yet, after those first 12 months (or whatever time limit your credit line has offered) you will be charged an interest rate. According to US law, it is required for the credit card company to inform you of what that interest rate is likely to be after the 12 month period is over. By telling you this information, you can estimate just how expensive the credit card will be. Some credit cards offer very low APR charges at the introductory period, but afterwards the cost can be substantially low. If you do not carry a balance from month to month, this is not a problem. If you do, it could be very expensive. |
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