0 interest credit cards: 3 Tips to Getting Them
0 % APR for credit cards is not a myth. Companies definitely offer this introductory rate so they can increase their market and entice more creditors to apply for credit. Applying for interest free credit cards may be as easy as answering a few questionnaires on-line; however, there are points that definitely need consideration before applying for 0 interest credit cards. Here are some points to consider:
How Will it Affect Your Credit Score?
Everytime you apply for a credit card, credit card companies pull up your file from the credit bureaus for inquiry. An Inquiry on your credit report is a negative movement on your FICO score. Therefore, we want to make sure that you lessen the agencies pulling up your credit report.
Is There a Catch?
Definitely, there is a catch on these 0 percent credit cards. This is just an introductory rate that they offer you. Most of the time, it will only last for 6-18 months. It will only either be 0% APR only on purchases. Which means cash advances and balance transfers are given a different rate. Make sure to read on the agreement before you apply for one.?There are cards that offer 0% APR on balance transfers but they usually charge a balance transfer fee which can be up to 3% depending on credit card issuer. When applying for 0 interest credit cards, be aware that they also charge an annual fee at times, which can be up to $69.00.
How Long Will the Rate Last?
The duration of the program depends on card issuer. It can be up to 18 months. However, your rate can change even before the agreement expires. If you miss on a payment, they normally increase your APR up to 29.99% plus late fee charges.
On a Positive Note:
0 interest credit cards give you a great change of rebuilding your credit. This is easier on the pocket since you actually don’t pay for interest during the period of the promotion. This will prevent you from missing on a payment because the minimum payment is very affordable. If you can maintain a great payment history, they might even give you a good APR after the agreement expires. Some banks can even give you as low as 3.99 % APR if you’re a good borrower.?It can also be a great chance of consolidating your credit. Fewer credit cards means lesser temptation to spend. Hence, less problem at the end of each month.?We just have to make sure that we are reading the agreement carefully rather than being shock at the end of the day because of the increasing APR rates.?TIP: The back portion of an application form is meant to be printed so small so you won’t even bother reading them. It’s time that we take some time to go over the agreement at the back to secure ourselves.
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