Liza Mathers currently serves as personal finance editor of a popular UK Personal finance comparison site called Seek4finance.
During her 9 years in journalism, Liza has won a series of awards for her personal finance journalism, ranging from awards for campaigning journalism, business scoops, all-round personal finance knowledge and her proven ability to explain personal finance in simple plain English.
In a nutshell, Liza puts the consumer, not the personal finance industry, first.
As you go about considering what type of credit card to obtain, you may have run across advertisements for a 0 per cent APR credit card. In this regard, you may be wondering what 0% APR is all about and whether a credit card with a 0 per cent APR is right for you. Through this article, you will be presented with some basic information to help you understand what a 0% APR credit card is all about. In addition, you will be presented with the pros and cons of a credit card that is offering 0 per cent APR to determine if such a card is right for you.
As you go about considering what type to obtain, you may have run across advertisements for a 0 per cent APR credit card. In this regard, you may be wondering what 0% APR is all about and whether a credit card with a 0 per cent APR is right for you. Through this article, you will be presented with some basic information to help you understand what a 0% APR credit card is all about. In addition, you will be presented with the pros and cons of a credit card that is offering 0 per cent APR to determine if such a card is right for you.
You may have heard the term 0% APR but not fully understand what 0 per cent APR is all about. In simple and direct terms, 0% APR stands for 0 per cent annual percentage rate. This refers to the interest rate that is (or, in theory is not) being charges on a particularly credit card for a particular period of time. In other words, a company many offer a 0 per cent APR to a customer for a set period of time. During that period of time, the customer can use the credit card and carry over balances from month to month without incurring an interest charge.
Of course, on the surface, anyone would like the prospect of saving money on the use of a credit card by not having to pay interest over the course of at least some period of time. However, when all is said and done, there tends to be a number of "strings" attached to a typical offer of 0% APR. It is important for you to understand the requirements associated with such a deal before you in fact end up signing up for such a credit card.
As mentioned a moment ago, in most instances a credit card company will offer a 0 per cent APR for a set period of time. What sometimes is the case is that the interest rate that ends up being in place after the initial period of 0 per cent APR is higher than what you will find on comparable student credit cards available on the market today. In other words, while you may end up saving a bit of money on a 0% in the beginning, during the initial months you have a certain credit card, you will end up paying more on interest over time due to the higher APR charged by the company after the initial period comes to an end.
There may also be some other hoops that you do have to jump through in order to realize the benefits of an annual interest percentage rate that is set at zero. In other words, you need to digest all of the finer points associated with a 0 per cent APR credit card offering before you make a decision about that particular cheap credit card You must consider whether or not you will realize some true personal finance savings to yourself by taking up a cheap credit card that is promoting a 0% APR.
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