0 APR credit cards are very popular among consumer and business owners. These cards allow their holders to pay no interest for a limited period of time on their transactions. Major credit issuers offer 3 flavors of 0% APR credit cards:
o 0% for Balance Transfer
o 0% for Cash Advance
o 0% for Purchases
0% Balance transfer cards allow you to transfer your high interest debt to a low interest account and save a tone with the process. While issuers offer tempting introductory periods to get more customers to sign up, they charge 3% transaction fee to make up for the lost interest revenue. These cards are the best cards for credit arbitrage.
0% cash advance card are designed to help folks take on short-term debt. Cash advances usually receive higher interest rates and are not the best financial option for those looking to take on debt. However, 0% cash advance offers allow you to avoid the higher interest on your debt. You still should be careful about taking your cash advance balance past your introductory period.
0% purchase offers are designed for folks who are looking to take on debt on their purchases and pay them off gradually. You can buy a computer or HDTV with a 0% purchase card and pay it off in 12 or 15 months without having to pay a nickel of interest. These cards are the most popular 0% cards in the consumer market.
Paying no interest on your debt is a tempting offer and what most consumers find difficult to refuse. However, you should avoid falling for the wrong 0% offer. You should always take into account the post introductory APR before signing on the dotted line. In addition, you should do your due diligence and find out more about the issuer you want to work with to avoid heads in the future.
0% offers are not for everyone. First, you should realize that no interest funds are different from free money. If you can not possibly pay your debt back, you should not take on any debt at all. The temptation is always there to go and spend money on these we do not need. But you will have to pay your debt back sometime. If used the right way, no interest offers can help you save money in the long run, but you need to keep your fiscal discipline to avoid making wrong spending decisions.