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0% Apr Credit Cards: A Smart Way To Save
October 25th, 2009 | 
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With the plethora of credit card options available today, you can use plastic to pay off debt and save money. Using a credit card to get rid of debt, rather than rack it up, may sound strange. But it is possible with 0% APR credit cards. All of the major credit card companies offer 0% APR credit cards. They are a great way to save hundreds, even thousands, of dollars on interest. If you use them wisely, 0% APR credit cards will help you get one step ahead in the credit card world.
What 0% APR Credit Cards Are
APR stands for the annual percentage rate on your credit card. When credit card companies advertise 0% APR, they are giving you the chance to carry a balance on your card and not pay interest on it. The timeframe for this 0% APR is usually between six months and a year.
Some credit cards only include 0% APR on new purchases. Others offer the 0% interest rate for purchases and balance transfers. With the balance transfer option, you can shift the amount that you owe on a card with a high interest rate to the 0% APR credit card. If you pay off the balance within the introductory period, you will avoid paying high fees in interest.
The savings you’ll receive from a 0% APR credit card can add up fast. Let’s say you carry a balance of $2,000 on a credit card for a full year. If the interest rate is 20%, you will have to pay $400 in interest. This would not be the case with a 0% APR credit card. If the 0% introductory period is twelve months, you will avoid paying $400 in interest. That’s a significant savings!
Read the Fine Print
While 0% APR credit cards offer a great way to pay off debts and save on interest, it is important to understand the details involved. Some companies issue the introductory period based on your credit score. If you have good to excellent credit, you will receive a longer introductory period than if you do not have outstanding credit. Keep in mind, however, that there will still be an end to the introductory period.
This is why it is also essential to look into the “go to” rate. This refers to the APR that will go into effect after the 0% APR introductory offer. This “go to” rate is often higher than other credit card offers. If you check into this before applying for a 0% APR credit card, you will know what is in store for you after the initial grace period.
There are sometimes additional fees involved with 0% APR credit cards. They may charge a certain amount to transfer balances on to the card. Also, the interest rate may be raised if you miss a payment. Some 0% APR credit cards are only available to those with good credit. If you have poor credit, you may be better off with a different credit card.
If you want to pay off some debt or make a large purchase, it is time to look into a 0% APR credit card. You can use the introductory period to pay off balances. Then take the money you’ll save on interest expense and use it for other purchases. Apply today for a 0% APR credit card and start saving.
Ed Vegliante
http://www.articlesbase.com/finance-articles/0-apr-credit-cards-a-smart-way-to-save-135009.html
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12 Responses to “0% Apr Credit Cards: A Smart Way To Save”
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Is now a smart time to pay off credit card debt or save?
I’m just curious. I should be coming into a little money sometime soon and I didn’t know if it would be more wise to pay off debt or to save, seeings as the economy is being flushed down the toilet right now. What is my best option and why? I’m making large (yet still minimum) payments on my credit cards and when I get the money I would like to just pay them off and it will still leave me with a little bit of extra cash that I would most likely save. Good idea or no?
Yes, I would pay them off if you are still going to have a little money left over, because you never know what may happen in the future.
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Definitely pay them off. The sooner the better.
Also, if you would like to learn about money & how to spend it well you should watch the Suze Orman show on NBC. It’s really good, you can even call her in & ask questions. xD
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Pay them off, if you are paying any finance charges at all then you are throwing away money. Pay off your debt, increase your credit score, and then save for the future.
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You will be money ahead to pay off credit cards because of the interest rates they charge. Putting your money in a savings account will not earn that much interest. By paying them off it’s like paying yourself interest.
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You need to have an emergency fund in case you get laid off or have some other sort of problem. If you don’t have anything set aside, make sure u have a few months’ living expenses at the very least. But having done that, assuming your debts are at a high interest rate, try to bring down the debt.
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It is always best to get rid of the debt, and try to save a little bit, Suzee Orman always gives this advise.
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Knock out your debt and get your cards paid off. I’ve been paying off what’s left of our debt this past year, including my student loans and our vehicles which are now paid for. As Dave Ramsey says, "If you save now and live like no one else…later you can live like no one else."
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The interest you are paying on those credit cards is a lot more than any return you might get investing that money. Paying off the credit cards is always the way to go.
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If you can pay 10% per month on your credit cards, it should be paid off in about 11 months. As you suggested, put the rest in a savings account. If you’re working, pay something away every pay, no matter how small it might be. Every other month add $1 to it.
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Retired bill collector 35 years
well if you are just getting youre taxes i would say that you need to pay off all of your debts and dont play around with your tax money. i always have a few debts a year but when i get taxes i do what i need first then play around with the money.. you should try it too!
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Pay it off smartly, I suggest you get some free professional consultation from http://g3iphone.net/debt
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http://g3iphone.net/debt