Patrick MacGregor
Credit card issuers use the 0% APR as a marketing tool to draw customers to their side. This program is good for the first six or twelve months of using the card. Like many programs, 0% APR has its positive and negative points. It’s up to you to weigh your options to determine if a plan with a 0% introductory rate is perfect for you. Read on as we take a look at the positive and negative traits one by one.
Of course the positive side of the 0% APR is the rate itself. It would seem impossible for companies not to charge their customers with anything, but they are willing to take the risk to draw in the customer and use their credit card. From the time you receive your credit card, you will enjoy a very low rate as much as 0% and not to worry about it for the first six to 12 months. You might call it your honeymoon period with your credit card since you spend more on your credit on this card, and enjoy a very low rate compared to your other credit cards. With a no annual fee credit card, you can get a great deal during this time.
The drawback for the 0% intro APR is when the program ends. Your credit card issuer will of course try to recoup their losses during the six month period. Because of this, they will have to raise the rate higher than normal. In the end, you might have had a great honeymoon with your credit card, but if you can’t pay your balance before the end of the introductory rate; you will be forced to pay the balance at a higher rate. The remaining balance will be transferred to your next months bill, and you will have to pay it at the higher rate quoted by the company. Before you know it, you are tied up with a balance that you will have to pay on for longer than you have planned.
This program is good in itself. It’s going to be great knowing that you have the best rate right now on the market, and you can spend it for the next six to 12 months. For people who can pay their balance on time, this program will work to their advantage. If you can pay your balance before the end of the program, just use the card until the end of the introductory rate and you will be all set.
If you have problems in paying your balance on time, better think twice. The rates that will be applied after they increase, and it will be higher than your regular credit card. It’s best that you stick to a credit card that offers a low fixed rate. Even if you pay the rate from the start, the balance can be controlled.
You are the only one who can determine whether you are fit for this program. If you can pay your balance on time, then this program is great for you. If not, better look for a low, fixed rate.
Patrick MacGregor has written numerous articles on credit management and is a collaborator of a site that offers news and information on credit cards. If you're looking for more information and want to fill out a credit card application, visit his site today. Or if you're looking for more information on Credit Card Cash Advances check out this article.
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