How Do 0% APR Credit Cards Work?

June 25, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

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Having some extra money in your wallet sounds like a nice idea, wouldn’t it? What would be your plan for spending that extra cash? Maybe go out for a shopping spree? or traveling to a nice country? No matter the situation, having extra money to spend on other things instead of paying bills and debt is a relief and a sense of satisfaction.

You might be asking yourself, what does 0% APR even mean? The annual percentage rate (APR) is the amount of interest that you would have to pay for the year on your credit card. With a 0% APR you’re going to be paying no interest for a certain amount of time because its an introductory promotion. After the promotion expires you pay interest according to the terms of your credit card agreement.

Ways To Make The Most Out Of A 0% APR Credit Card:

• A 0% interest rate offer might provide the flexibility you’re looking for, but check thoroughly to ensure the credit card is right for your needs
• Be realistic about how long it will take to pay your borrowing back, and plan out how you’re going to use the card accordingly
• Try to pay off as much of your balance as you can, as soon as you can. If you don’t and your 0% offer period ends, you could pay higher interest rates.
• Be aware that using your card for other purposes not covered by the promotional rate, for example cash withdrawals, could increase the amount of interest and fees you pay overall

We have recommended the best 0% APR credit cards for you, with these credit cards you will save money because you won’t have to pay any interest anywhere between 6 to 15 months, depending on the 0% APR credit card you decide to choose from. Also, you don’t have to pay an annual fee as these credit cards have 0% annual fees, which will help you save even more money.

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• 0% APR
• No annual fee