Posts Tagged "Balance Transfers"
0% Purchase Credit Card Facts
0% purchase credit cards are those that usually include introductory rates such as 0% interest charge on the first few months of the user’s purchases using the same credit card. This is why this type of credit card is most advantageous to those who would like to enjoy unlimited shopping for at least six months without having to worry about any form of interest charges in their purchases. It is important to take note that this promo of 0% purchase credit cards do not last for a lifetime, in fact they are offered for a limited time only. If you have any of these 0% purchase credit cards, be sure to check first the expiration of this promo for you to avoid any interest charge problems in the future.
Most 0% purchase credit cards also offer low to 0% APR, which is particularly helpful for those who would like to keep their credit cards for a period longer than a year. Low APR means less worries on the annual percentage charges that any of these 0% purchase credit cards all have to offer. For instance, there are some companies that offer 15.9% APR charged on a variable basis. This means that the APR would have to be based on the market conditions plus the influence of the amount of purchases that the credit card user have incurred over a specified period of time.
After the user has consumed the period of 0% interest rate on the purchases he has made over a period of time, some credit card companies may still continue to offer him with low interest rates, provided that he maintains a credit quota to make him qualified for the promo. Some credit card companies issue interest rates for as low as 5.5% against the typical 6 to 12% interest rates of the regular credit card options available in the market. Certainly, any user would be after these low interest rates. However, before jumping into conclusions, make sure that you research for the company’s provisions and terms on the possible hidden charges such as application fee, monthly charges, penalty fees and other forms of fees that are usually not declared in the initial application status of your credit cards. If you do not want to be surprised with any of these hidden charges, look for more details on that credit card company and read the credit agreement before sending back anything.
Balance transfers are also one of the additional features that you can enjoy with 0% purchase credit cards. A balance transfer is usually a card-to-card transaction which involves relocating debt from one credit card to another, usually for the purpose of obtaining longer grace periods to settle the balances and to get rid of soaring interest rates that are commonly imposed by banks on accumulated debt. Fortunately, this option could also be available with 0% purchase credit cards, thus making your credit card indeed versatile as it serves more than just the ordinary purposes of shopping, online purchasing, bill paying, and even gas spending.
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