The 0% APR credit cards are the ones in which the rate is 0 during the offer period or for a certain period. 0% APR means 0% Annual Percentage Rate on credit card. This relieves most of the people with high interest rates of the credit cards burden. You are not required to pay interest on credit cards at least for some months, it helps you save lots of money on debt payments.
Advantages of 0 APR credit cards
The 0 APR credit cards have various advantages and these are:
1. It saves money
The 0 APR credit cards helps to save money on your debt payments. As the creditor isn’t charging you any interest, you need to pay money only against what you charge the card for. So, it would be best for you to make right usage of the card according to the terms and conditions within the offer period.
2. It helps for lowering the burden
The 0 APR credit cards relieves you from the pressure of dealing with the high credit card payments. With these cards, there’s no required to make high payments against the card.
3. It helps to build better credit
With balance transfer, it becomes easy for you to make the payments. Thus, you’re able to make the payments on a regular basis. 35% of your credit score depends on the payment history. Thus, it helps you to better your credit with time.
4. Balance transfer can be done
You may be able to balance transfer by using the 0 APR credit cards. As you transfer the balance from all of the other credit cards into the 0% credit card, it helps you in getting all of the debts rolled over as a single debt. Thus, it is not only the interest rate, but the number of payment gets reduced too.
Disadvantages of 0 APR credit cards
0% interest card have some disadvantages as well.
1. The APR is valid for a stipulated time period. Remember, once the introductory period over the card will turn back into its regular rate. And the regular rate is not as low as you think. Be always sure about the balance, once you’re approaching toward the end of the introductory period.
2. If you not pay the bills on time the card issuer may stop the introductory period as a penalty of late payment. Also you may get 30% of penalty APR.
3. You should pay a balance transfer fees even if you find out a card with 0% introductory offer. So, you need to calculate to ensure whether or not the card is beneficial for you.
4. Make sure balance transfers are included. You need to understand the terms and conditions thoroughly. There can be hidden charges with the card.
Conclusion
It is advisable to know the terms and conditions before opting 0 APR as different company have different terms. You can see that there are various advantages and disadvantages of the 0% APR credit cards. So, if you are getting any such offers, you need to handle the card in right way to improve your credit, save money on debt payments. Moreover, if you have good credit score, then you may focus on rewards or bonuses as well.