You have probably heard of a 0 APR credit card and wondered if you would qualify. Well, the answer is fairly easy. If you have good credit then you may very well qualify for a 0 APR credit card. But, if you just have ok credit or even bad credit then you can probably wave goodbye to your chances of being approved for a 0 APR credit card. However, you have likely applied for a credit card with an advertised 0% APR simply because you were tempted by such an offer. Before you apply for such an offer you need to know all the details about the credit card to ensure that the advertised 0 APR won’t end up biting you.
Generally, you will receive advertisements for 0 APR credit cards in the mail right after the holidays, although you may receive them year round. The reason you will receive offers for a 0 APR credit card right after the holidays is because many people max out their credit cards buying Christmas gifts and the idea of a 0 APR credit card is tempting so they can transfer the balances. However, make sure you read all of the fine print before you apply for a 0 APR credit card because it might not be as good an offer as you think.
First of all, once you have a no interest credit card and you transfer all of your balances all may go well for a little while. That is until you accidentally make a late payment. Then, the full APR allowed will be implemented. This means you could go from a 0 APR to almost a 30% APR in no time. You could end up paying higher interest by switching to a no APR credit card than sticking with the ones you have.
Another thing you need to keep in mind is that the credit card won’t have 0% APR forever. At some point the interest rate will shoot up. It could be six months, 12 months, or even longer. But, if you don’t have your debt paid off at this time you will be hit with a lot of interest. Also, if you have been spending more than you usually would simply because there is no interest on the credit card you may really find yourself in over your head. Make sure you are well aware of the interest rate that will be applied to your credit card after the introductory rate expires.
Remember that although it is very tempting to switch your balances over to 0 APR credit cards if the eventual APR will be higher than what you are paying now and you won’t be able to pay off your cards while the 0 APR is in effect then you will be better off not transferring. The credit card companies are really good at tricking people into switching over to 0 APR credit cards and then really increasing the APR. If you are smart with your credit then you will be better off in the long run by reading the fine print and making an informed decision about whether a 0 APR credit card is right for you.