HOW TO COMPARE 0% APR CREDIT CARDS
When a credit card is advertised as being 0 APR, the company/bank is in effect stating that there is no Annual Percentage Rate (APR) of charge. The APR is the rate at which interest is calculated on the unpaid balance of your card.
Not all 0 APR credit cards are equal. Actually, in the long run, 0 APR credit cards can turn out to be pretty expensive. Most of these cards offer this low rate for a short period of time, usually for six months to twelve months. Once the introductory period is up, the rate goes up. Based on this, be sure to find out if the APR rates that will chip in after the introductory period is a fixed rate or not. A fixed rate APR will remain the same, while one that isn’t will change over time.
To make a decision on a 0 APR credit card, you need to compare the following:
• The introductory period for which the 0 APR runs
• The regular APR after the introductory period ends
• What are the annual fees applied to the card
• If you are able to transfer balances, and
• The type of credit rating you need to apply for and receive a 0 APR credit card.
The grace period before any penalties are applied to your 0 APR card should be taken into account when comparing different credit cards. Some 0 APR cards attract higher interest if bill is unpaid beyond the grace period.
Another feature that should be compared is the fees that are attached to your card, since these can really add up and your 0 APR will mean nothing.
You will also want to see what other member's benefits you get with this card before making a final decision. For instance, if you are the type of credit card holder who does not pays off your balance each month, a 0 APR credit card may be just the thing for you.