With so many credit cards to choose from, it is difficult to know which is the right one. If you first understand some basic terms it may help to narrow down the options. Most credit card companies offer an introductory 0% APR credit card with no annual fee. This is the best option as it can save you money by cutting down on interest costs.
What is an APR?
The term APR can be confusing. APR is simply an acronym that stands for Annual Percentage Rate. The APR is the annual rate charged by a lender. This is expressed in a single number that represents the actual amount charged yearly for money borrowed on the card. This differs from the APY or Annual Percentage Yield because it does not take into account compounded interest. Credit card companies are required by law to state the APR so consumers will have a standard to go by when making a decision. Just be aware of the yield in terms of compound interest.
How Do They Work?
0% APR credit cards are a popular choice, even though users may be unclear about the details. A fixed 0% APR credit card generally has a term i.e. it is subject to change. Low fixed rates are used to attract new clients. After the introductory period, the rate will goes up either to a fixed or a variable rate. The standard rate will usually come from prime plus a certain percentage. Rates are based on a person's individual credit score.
Researching and Applying
If you are going to apply for a 0% APR credit card, then you should first do some research. Ask friends if they are happy with their credit card companies. This means that you can evaluate a company's customer service ahead of time. Another good idea is to look at the Better Business Bureau's website and see what has been said about them.
On most bank and Credit Card Company websites there is a feature enabling customers to compare various card and account choices. Some examples that you might find are APR, reward programs and color choices. It may be worth calling a company's customer service line for more information before applying for a 0% APR credit card.
There are different ways you can apply for a 0% APR credit card. Probably the easiest and quickest way to apply is online. If you do this you should first make sure that the website is secure. Virtually all companies are able to process an application online. Or you can call the chosen company and request a paper application If the company is local then fill one out at a nearby branch. It is also possible to complete an application over the phone.
Summary:
0% APR credit cards are a wise choice for many consumers. They offer good rates and many options. As long as one follows some simple guidelines before selecting his or her card, this can be a safe and economical decision.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Non-Fiction Articles
Book Marketing: the Day That is Different for Your Career Strategy
By: Rosey Dow | 06/10/2008
Make an informed decision about the direction of your writing career--print or online, or both.
In the Lap of the Gods 22
By: Steve Morgan | 05/10/2008
For those who have read the other 21 chapters
A Week in the Life of the Single Working Mother
By: Karen Dosw | 03/10/2008
A humorous article about a week in the life of one South African, single mom with two adult children and two little ones.
Why You Should Write for Free
By: Deborah Owen | 01/10/2008
Write for free? I can hear you saying, “Are you nuts?” Write for free, so you can get paid. Read more inside.
Why You Should Write for Free
By: Deborah Owen | 01/10/2008
You asked if they had a job opening. They said no. They told me “no”, too, but I got the job anyway. Read more inside.
Becoming a Reporter is Easy
By: Deborah Owen | 01/10/2008
Do you want to be a reporter? It’s a great way to break into print, and the jobs aren’t that hard to get. Read this article to learn more.
Writing it Down
By: Galina Nemirovsky | 29/09/2008
Lately I’ve developed a compulsion to write everything down. Stringing words together and composing sentences in the shower, I want to write it all down – remember it – capture it. I stare at people in the subway and craft their character descriptions in my head...
The Modern Lily Tomlin
By: Galina Nemirovsky | 29/09/2008
I’m waiting in a conference room that smells like the corner of career aspiration and stale office carpet. The overly heavy and overly bitter receptionist has a voice that is piercing through the makeshift conference room with walls that only go up about 7 feet. Like an annoying hiccup, she keeps repeating “Good morning, Hudson. Your name? Hold please.” Over and over again. She is an extra large version of what the rest of the world has automated already.
More from Brooke Hayles
Prerequisites Needed To Become A Successful Tax Attorney
By: Brooke Hayles | 15/12/2006 | Careers
If you want to become a tax attorney you need to find out what they do first. A tax attorney helps people to deal with their taxes in the proper manner. An individual or a business may need the help of a tax attorney for a variety of reasons - including mistakes in their returns or late tax returns. You need quite a high educational level to become a tax lawyer.
0% APR Credit Card - Which One Is Right For You?
By: Brooke Hayles | 13/12/2006 | Non-Fiction
If you're a credit card holder, you should know about 0% APR credit cards. Simply put, this type of credit card has a 0% interest rate for a specified period of time. During the 0% period, you won't owe any interest on your debt.
Get Tax Help From The IRS - It Can Greatly Help You
By: Brooke Hayles | 13/12/2006 | Non-Fiction
Tax help is important for most of us, because not everyone is an accountant. There are many ways a taxpayer could go about obtaining tax help and some of these avenues will save you money.
Get Tax Help To Avoid Getting Caught In A Financial Mess!
By: Brooke Hayles | 13/12/2006 | Non-Fiction
It has been said that there are two certainties in life, death and taxes. While you can do nothing about the first there is all kinds of help available when it comes to paying taxes. Getting the right kind of advice is crucial if you are to save at least some of your dollars.
Who Needs Consumer Credit Counseling?
By: Brooke Hayles | 08/12/2006 | Non-Fiction
If you need help fixing your money problems, consumer credit counseling is for you. They will help you work out how to pay your debts and also build a secure financial future.
How Do You Get The Diabetes Supplies That You Need?
By: Brooke Hayles | 08/12/2006 | Health
Diabetes is a common problem that can be come very serious if not taken care of properly by the right diabetes supply. The levels in the blood will need to be monitored closely to ensure that proper steps are taken to keep you healthy. This is something that, once started, will most likely continue for the rest of the life of the patient. It's not pretty, it's not fun, but it may save your life.
Farmer Insurance - Don't Bet the Farm, Shield Yourself
By: Brooke Hayles | 08/12/2006 | Non-Fiction
When the protection of farm equipment, livestock and crops are in question, Farmer insurance must be purchased. Farmer insurance will safeguard against financial ruin due to unforeseen occurrences. Common coverage include loss of income due to theft, crop failure and the death of livestock.
Health Insurance Plan - Don't Play With Your Health!
By: Brooke Hayles | 08/12/2006 | Non-Fiction
Having health insurance is a must. There's no reason to take the risk of incurring massive medical bills due to an unforeseen accident. A health insurance plan can be costly, so it pays to look around and find out what options are available to you before deciding. But saving a few bucks by not carrying insurance is not worth it.
Writing 
