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0 Apr Cards – Why You Should Have One


0 APR cards or 0% APR cards are credit cards where  you pay no interest, for a certain period of time, on the outstanding balances.

Many companies offer 0 APR cards as a way of getting new customers into the door. Typically the zero percent interest rate is an introductory rate which expires in 6 to 12 months at which time the interest rate on the cards goes to it’s normal rate.

3 Reasons Why Everyone Should Have At Least One 0 APR Card

1) To be a source of a short term zero percent interest loan – Most of us will run into some sort of economic troubles once in a while. Unexpected expenses often have a habit of turning up when you least expect them. For example, maybe your cat is sick and you have to come up with an extra $350 to pay for treatment. Or your heater goes bad and you have to replace it with a new one. While it’s true that you can charge these with a normal credit card, using 0 APR cards let you spread that $350 payment out over 3 months, 6 months, or whatever – without paying interest. It’s the best type of short term loan you can have.

2) You can transfer your high balances from your other credit cards. If you’re trying to get out of credit card debt, one way of doing so is to reduce the rate that you’re paying on your credit cards. By transferring your balance from a card on which you’re paying 12%, 15%, or more to a zero percent card – you can temporarily stop the balance from increasing which allows you to pay off the principal faster.  You probably should not transfer more money than you can pay off by the card deadline. But as long as you can pay if off on time, you can save quite a bit of money.

3) To Act as a buffer from loss of a job. There are very few jobs that are secure, especially in today’s economy. If you get laid off in two weeks, do you have enough money in the bank to support you for the next six months to a year? Many people don’t. In cases like this, 0 APR cards can be a real life saver and financial bridge helping you and your family to survive until you can get back on your feet again. Normally, using a credit card to pay for day to day living expenses is a terrible idea. But, sometimes it’s unavoidable. And if you have to use a credit card for this purpose, it’s much better to use one in which you’ll be free from having to pay interest for a while.

Your live may seem relatively stable right now. But circumstances can change in an instant. And it’s just good financial sense to be prepared for the worst. Applying for 0 APR cards is one way of preparing for the worst. If you never have to use it, that’s terrific. But at least you’ll have the peace of mind that comes with knowing you have a back-up funding source at your disposal.

Even though, for most people, 0 APR cards are obviously a good thing – don’t take the terms of the card for granted. Make sure that you read the fine print so that there are no negative financial surprises when the introductory term comes to a close.


Consumer Credit Counseling
Although disparaged by many, consumer credit counseling can be a great help in assisting consumers to draw down their credit card debt and to get their finances on the right track.

Credit Counseling
If you are faced with seemingly suffocating debt, little income, and depressed to the point where you are considering bankruptcy, you may want to first try credit counseling.



 

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