0 Percent APR Credit Card – Benefits and Disadvantages

Are you looking to make that application for a 0 percent APR credit card? Are you fully aware about the benefits and disadvantages that these cards have? If not, you must spare some time getting all the information before you submit your application. Let us look at the benefits of these cards and also some of the disadvantages.

Benefits
Any bank or cards issuing company, which makes an offer for 0 percent APR credit cards is only doing so as an introductory offer. These offers usually last from 3 to 24 months. This in reality means that you will be able to use the card with no interest being applied on the usage for the introductory period. Limitations on the usage however could have been applied by the card issuer, which could include balance transfers or purchases. As you are not being charged any interest, you could very well make the minimum payment required and leave the rest in a savings account. The same applies to balance transfers from other cards. Ensure that you make the minimum payment every month and you could soon be out of debt. Remember, the total outstanding amount has to be cleared before the introductory period ends. Be prepared for the same.

Disadvantages
Credit card issuers are by aw required to mention all charges associated with their offers in detail. However, the law does not stop these companies from mentioning these charges in fine print. They are well aware that most consumers neglect reading the terms and conditions under which the offer has been made. They bank upon the fact that consumers will extend their liabilities by spending more than their known sources of income. The introductory offer on the 0 percent APR credit card looks alluring to most consumers. However they forget that the regular charges, which will be applied once the offer ends could be high. Consumers in these circumstances usually end up in debt, which turns out to be larger than their original balance.

A 0 percent APR credit card may give you the impression that it is great but that is certainly not the case. It is great card to have if you are adept at avoiding any traps that may have been incorporated within the terms and conditions of the offer. You will have to indulge in a great deal of research before you make an application for such a card. Get every bit of information you can find about the offer. This is the only way you can stay out of trouble.

Source by John Espinosa

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