Companies are offering a 0% intro APR and no balance transfer fee and purchases for close to two years with some companies exceeding two years. The APR is used in reference to the annual interest rates applicable to credit cards, mortgages or loans. Concerning credit cards, the APR is crucial to making informed decisions on card selection.
The interest rates range between 10%-30%. The APR will help you know how much a transaction will cost. The balance transfer rates during this period range from 3% to 5% of the amount of transfer or $5 whichever is higher. The cards have no annual fee. However, the issuer has no liability on unauthorized purchases.
Choosing a Credit Card
The choice of a credit card should reduce the cost of debt and interest burden. Some credit cards offer 60 days no balance transfer fee. Notable is the fact that only a few companies will combine 0% APR with no balance transfer fee. Some cards will offer 15 months zero APR while others go as long as 33 months. The longer APR is, of course, preferable to anyone wishing to reduce cost. However, you need to carry out due diligence as some are just but promotions. The zero APR may not be applied to the period as advertised. Majority of us may overlook the long-term APR after the promotion.
It is crucial that your credit cards still give maximum benefit after the promotion. The best way to ensure this is to make sure you have a clean credit history. With an excellent credit rating, you stand to benefit from the lowest APR after the promotional period. Also important in choosing a card with long-term service are companies that do not charge interest as long as the credit repayment gets made within the set period. Also, you will need to look at the ongoing APR and balance transfer fees of the company that you choose. The range is from 13.99% to 24.49%. A low APR is preferable because long-term high APR makes credit expensive.
Different Options for Different Situations
If you or your business is carrying a substantial balance on your credit cards, the 0% intro APR is crucial in reducing debt and interest problem. If you are looking to move from your current credit card, the key consideration is interest and debt. The length of the 0% APR offer differs among credit cards. For you, who are struggling with finances a longer bid will shield you from high penalties and interest. Late payment fee can go up to $35 as well as ruin your credit history raising it to almost 30%. You will also look into the reward system though this may not make a significant impact. If you are in business, you will be impressed by a firms credit cards. With the low APR, the company can reduce interest payments. Though they have a short-term low APR period, the variable APR is on the lesser end of the investment spectrum.
If you qualify for the minimum rate, the variable interest rate will benefit your business. Having learned that one can take advantage of low APR, let us see how you will save. The secret is in taking advantage of 0% APR and the best balance transfer. During the grace period, any purchases repaid by the due date do not attract any interest. However if the customer carries forward any balance, they pay interest on the outstanding balance. Instead of taking an initial high amount and repaying it over an extended period, you should transfer the card balance and take advantage of the 0% APR and no balance transfer fee. A one-time cost is more expensive than that paid for a longer time. However, the reality is that people are continually making new purchases. The card balance will steadily go up. Nonetheless, it is to your advantage that you enjoy the 0% APR and the best balance transfer fees available. You may consider taking advantage of them to attain financial stability for both you and your business.