0% APR Balance Transfer and 0% APR Credit Cards

0% APR Balance Transfer and 0% APR Credit Cards

Credit cards with 0% APR

We all know that credit cards are expensive, especially if you are deeply in debt with them. So how are some companies able to offer no interest credit cards? The answer is simple, they offer free credit as a loss leader, that is, they get customers who will later reimburse them all the interest they will pay. The majority of interest-free credit cards have contracts stating that the initial interest-free period will only last for the first year, after which you will be charged the normal rate.

0% APR Balance Transfer

As a way to attract new customers, credit card companies will try to attract customers from other companies by making it really easy for them to make the switch. As well as offering 0% interest as stated above, they also offer a free transfer of any existing debt or balance.

A combination of the two points above is often used by the power user. If you’re making regular payments and because of the large debt you’re actually only paying the interest and not reducing the principal, then you may be able to try a fee-free balance transfer compounded with no interest for the first 12 months. This would mean that you get a whole year in which all the payments you make will go towards paying off your debt instead of just paying the interest each month. You might even eliminate your debt entirely by doing this.

You can also make the most of the offers above as follows. If you want to buy an expensive item. Instead of getting financing through the supplier or your bank, you can get a 0 interest credit card and pay for the item that way. Divide the total payment into 12 parts and you have what can be called free financing for years.

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