Annual Percentage Rates are essential to consider when applying for credit cards. While shopping for your new credit card, you will come across many 0% APR promotions. Choosing a card that is offering this promotion can be used to your advantage.
Although most 0% APR promotions can last between 12 to 18 months. Before deciding, it is helpful to compare the length of the promotions for the credit cards you are considering. You want to make sure you are getting the best deal. Choosing a card that has a longer 0% APR offer is beneficial. The longer your promotion, the more time you have to conduct interest-free transactions and pay off your balance.
What is the catch?
As we all know, nothing is free without a catch. If your credit card balance is not paid off by the end of your promotion’s expiration date, you will be charged an interest rate on your remaining balance. The best way to benefit from your 0% APR offer is to spend what you can afford to pay back. When you do not pay off your promotional balance, it helps the credit card company. Paying off your balance before your offer expires allows all the transactions you made to remain interest-free. In addition, with a more extended promotion, you have more flexibility in making payments.
The goal is to use this promotion to your advantage. Therefore you want it to work for you, not against you. Regardless of which credit card company you decide to go with, be sure to get the most out of your cardholder perks.
