The interest rate that a person has to pay if he or she carries a balance on his or her credit card from month to month is known as the annual percentage rate, or APR for short. With credit cards, the lower the rate the better, because that means that less money has to be paid in interest. Special kinds of account known as 0 APR credit cards have a 0% annual percentage rate during the introductory period. This allows a person to use this without having to worry about interest until later.
If a person has a lot of debt built up on his or her other cards, then he or she can use 0 APR credit cards to help cut down on the costs as they are paid off. However, the 0% annual percentage rate only lasts during the introductory period, between six months to a year. Few issuers offer the 0% annual percentage rate over a year, and even then, it usually only lasts as long as fifteen months maximum.
Whenever a person carries balance on a credit card from month to month, it is subject to an interest rate. If a person does not pay the balance off as soon as possible, then paying it off later will be much more expensive. Interest has a habit of adding up very quickly over time. With 0 APR credit cards, interest does not build up during the introductory period, which may be between six months to a year.
When the introductory period of 0 APR credit cards passes whatever the limit it has been set at, the account assumes a normal annual percentage rate. This is usually fairly high compared to normal accounts: between 15% and 20%. Therefore, if a person wants to use a card that has a 0% annual percentage rate, it should only be used during the introductory period, otherwise it will be subject to the normal annual rate.
Whenever a person does not pay off the balance on an account it will build up interest over time. With 0 APR credit cards, however, the interest will not build up for a few months until the introductory period is over. This period can last between six months to a full year. Transferring balances or making large purchases early are two of the uses of an account with a 0% annual percentage rate.
Discover where to get 0 APR credit cards and then transfer the balance to a new 0 interest card year after year. Cards from all the top lenders are available at Credit Card Balance Transfers and Credit Card Balance Transfers in the UK
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