0 Apr Credit Card
What Is A 0 Apr Credit Card
The term APR - (Annual Percentage Rate) refers to the pre-
determined, yearly interest rate that is used to work out how
much interest you will be charged on any balance that remains
outstanding on your credit card account after the bill becomes due
Zero apr credit card offers will vary from one credit card
issuer to another but expect 0 apr periods of between 6-9-12
months' duration. After which, your credit card interest rate
will revert to either the variable or slightly higher rate of
interest. Apr's apply whether you take
out zero apr balance transfer credit cards or if you take a
zero percent credit card essentially means you pay no interest
on your credit card credit borrowing during the 0 apr credit card
period - (e.g. 3, 6 months or more). This is of course on the
proviso that you pay off the balance in full just before this
period comes to an end. You will still be required to make your
monthly minimum payments.
Zero Apr Credit Card Charges For Partial Payments
Should you choose to make a partial payment of the balance at the
end of the zero percent credit card offer period, you
will be charged interest on the amount that remains outstanding.
The credit card company will simply calculate the yearly APR in
order to get the monthly interest rate and the interest to be
charged on your zero percent credit card's outstanding balance .
Your credit card company or issuer will usually provide information
on how they will work out the rate of interest they will charge you.
This will be on the credit card credit application form and on the agreement so be sure to read it.
It is very easy to get carried away with spending on what you
perceive to be a cheap credit card, such as a 0 apr card. However,
before deciding on a 0 interest rate credit card, or any other
0 apr credit cards, you need to be doubly sure that you will
be able to repay the full outstanding balance when it becomes due.
If you're in any doubt whatsoever of being able to do so, then
the safest bet is to consider low interest credit cards over 0 apr credit cards.
Understanding Credit Card Apr's
It is important to note that a 0 credit card can have a number of
different Apr's, each of which can and do vary. For instance,
you might accept a 0 apr or 0 interest credit card offer that
applies solely to your making purchases. On the same card however,
you might find that you'll be charged higher apr's for doing both
balance transfers and for making cash advances.
Be also mindful that different credit card interest
rate apr's will apply according to the
amount of any outstanding balance. In general, the higher the
balance, the higher the rate is likely to be. This can be
anywhere from 17% upwards.
Here are some other APR basics to help you get the best apr credit
card product if your aim is to retain your card after the expiry of
the introductory apr period:
Remember, that on expiry of the introductory zero percent credit card
offer period, a new rate will apply. Before taking up a 0
credit card offer, check to see what the apr rate will be once
the 0 apr credit card offer period has expired. How much more
is that card going to cost you?
Thereafter, your credit card may either be on a fixed apr - (the
rate should not change but if it does, your credit card company
must inform you prior), or on a variable apr - (the
apr is changeable subject to fluctuations in prime interest
rates or other economic indicators - (indexes), that can affect
the interest you are charged
0 apr credit cards are worthy products if you intend to
pay off the balance just before the 0 credit card offer expires.
If you're unlikely to be in a position to do so, it is better
that you opt for a low interest credit card.
Forward plan and note in your diary a key date prior to expiry,
when you will arrange to clear the balance in full. Do not expect
to get a reminder from your credit card company but do expect a
statement with higher apr interest charges should you forget to
Do also read carefully the terms and conditions information in
your 0 apr credit card agreement to get an indication of how
often your credit card's apr rate is likely to change.
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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