Harder to Come By but Beneficial: 0% Interest APR Credit Offers

Smart consumers are always on the lookout for 0% APR credit card deals and for good reason - literally no interest for up to 12 months. Here's how to reap the greatest benefits and important points to remember when using 0% APR cards.

Introductory Periods

Credit card companies that offer an interest-free period do so as a way to encourage you to use their card and typically limit it to a period of six to twelve months. Look for the longest period of time to save the most money.

Purchasing Power of a 0% Card

Go ahead and make that large-ticket purchase and take several months to pay it off - interest free. At the same time, keep your cash in the bank earning interest and allow the credit card company to fund your purchase for free.

Balance Transfer Offers

Some 0% APR credit card offers are only for balance transfers but still can offer big savings. If you owe $5,000 on your current credit card with 18% APR charged to the balance, you could save over $500 in interest payments over twelve month's time! However, these offers usually include a one time fee of up to 3% of the transferred amount.

Standard APRs after the Intro Period

When the introductory period is over, your APR will revert to the agreed upon standard rate. Search for the lowest standard APR possible. If you accept an offer with a high APR and cannot pay the balance in full each month, you will be paying a substantial amount in interest to use the card.

Once approved for a money-saving 0% card, here are five things that you need to do to take the most of the benefits:

1. Pay on time! If you miss or are late in making a payment, your remaining balance will be subject to a much higher interest rate and penalties. Pay on time or lose your 0% APR rate!
2. Understand how payments are applied. Your credit card payments are applied first to the debt that carries the lowest APR. For instance, if 0% APR applies only to transfers, the payments you make will be applied to that balance first; purchases made that carry a higher APR, will be paid off last. Also, keep in mind that when the introductory period is over, the entire balance will revert to the agreed upon standard APR.
3. Avoid credit card 'convenience services. There is nothing convenient about a cash advance or a 'convenience' check. Included in your monthly statement, lenders appear to be lending a helping hand. But beware of services that are offered to make borrowing more convenient or easier. These services carry the highest fees and APRs.
4. High credit limit needed for transfers. Be sure that the credit limit is high enough for your needs, especially if you're choosing to transfer a balance. If the limit is too low, you may not be able to transfer the entire balance which defeats the purpose of consolidating your debt to a lower APR card.
5. Be prepared to pay off the balance. Borrow only as much as you can pay off over the introductory 0% period. Be prepared to pay off the balance once the intro period is up. The benefit of carrying a balance on a 0% card is over when the intro period ends.

Clearly, a 0% APR credit card has big advantages for the person seeking to make new purchases, as well as for anyone who wants to transfer their high APR balances. With careful planning, a 0% APR credit card can help you put more of your own money back in your pocket!

Research comparisons of top credit card deals and apply online. Fill out applications for Visa, MasterCard, American Express and Discover. Choose the right card for your special financial needs, including 0% interest APR credit card offers. Smart consumers are always on the lookout for 0% APR credit card deals and for good reason - literally no interest for up to 12 months. Here's how to reap the greatest benefits and important points to remember when using 0% APR cards.