Posts Tagged ‘0 interest credit card deals’

Many people seek zero interest credit cards in the hopes of saving more because of the lesser monthly charge they would receive. There really are credit cards that offer zero interest rates, but you should understand that such interest only applies for a certain period, usually from 6 to 12 months. The credit card company won’t make that permanent or else, they would risk the fate or their business. Take note however that even for a short term, these zero interest credit cards are good way to save money if used correctly.

What is APR?

To help us understand the concept behind zero interest credit cards, let’s first look into the definition of APR from Wikipedia:

The terms annual percentage rate (APR), nominal APR, and effective APR (EAR) describe the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage, credit card, etc. It is a finance charge expressed as an annual rate.Those terms have formal, legal definitions in some countries or legal jurisdictions, but in general:

* The nominal APR is the simple-interest rate (for a year).
* The effective APR is the fee + compound interest rate (calculated across a year).

Note that APRs are advertised by banks and credit card companies. In most cases, these ads would reflect zero or low interest rates. Be guided however that these lenders are mandated by law to disclose the APR prior to finalizing a loan or credit card application. They are required to state the annual percentage rate clearly before the signing of an agreement.

Where to Look for Zero Interest Credit Cards?

Listed in some sites are some zero interest credit cards, which include the ff:

• Discover More (SM) Card – 0% Intro APR for 6 months on Purchases, and up to 6 months on Balance Transfers*
• Discover More (SM) Card – American Flag – 0% Intro APR for 6 months on Purchases, and up to 6 months on Balance Transfers*
• Discover More (SM) Card – Monogram – 0% Intro APR for 6 months on Purchases, and up to 6 months on Balance Transfers*
• Citi Platinum Select Card – 0% APR* on Purchases and Balance Transfers for 6 Months*

These are just few of several zero interest credit cards available in the market. It’s also a good way to check with your local bank or lender if they offer any credit card that has zero interest.

Any credit card holder of anybody who wants to own one would like to have a card that has 0 percent interest. Before you search any further, you should understand that no credit card company will ever permanently offer a 0 interest credit card primarily because the interest is the method for them to profit. It would be naïve on their part to eternally lend money with no interest at all. So they try to come up with ways to disguise their motive.

The most common way for bank and credit card companies to do this is by offering the 0 interest of these credit cards only during the a period of time with a minimum balance. An example would be a 0% APR on purchases and balance transfers made within the initial 6 months. The regular APR rate will then apply on the succeeding months. To add more value to this, some bank or credit card companies will offer 0% annual fee for the first year. They waive the first year annual fee to create a certain package that will attract customers to avail. Others banks don’t offer this but they do have low interest rates that applies for a period of time, both on purchases and balance transfers.

Another instance when you see such 0 interest credit card is particularly for credit card debt consolidation offers. This is a way for banks or credit card companies to promote customer loyalty and possibly increase their number of customers. Having 0 interest or ‘no fee’ applied to the debt consolidation or balance transfer usually entices customers to choose that credit card instead of other brands.

In order for you to be on the safe side, it is recommended that you read the terms and conditions that applies to the offered 0 interest credit card. This is because whenever you see an advertisement or a promo, you can notice an asterisk beside some words. There might be a catch why these types of offers are presented to the public. An example would be something that states “apply for 0 interest* credit cards”. In the ads, you won’t see the details that the 0 interest only applies for a certain period or a fixed amount. You might end up calling the credit card company to complain for something you didn’t understand during your time of application. So again, try to understand every detail of the terms and conditions as much as you can.