Tuesday, January 27, 2009

0% APR Credit Cards: How Can They Do That?

During the years when the federal bank interest rates were at its lowest, back in 2002 and 2003 to be specific, infinite credit card suppliers offered 0% APR credit cards to many consumers. Needing only to pay the outstanding balance, smart consumers were able to charge up to their bounds without incurring monthly interest charges. The inquiry that some people were asking when these cards were at their extremum of popularity was this: how do credit card suppliers make money off of this type of plan? Well, good question! Let’s analyze 0% APR credit cards and the manner they really work and if they are still available to you today. You just might be surprised at the answers!

Annual Fees. Depending on the credit card provider, some card holders have got been charged an annual fee for the privilege of having a 0% APR credit card. Annual fees for some of these cards generally run from $15 to $20, even higher.

Late Fees. You would believe that if clients had a 0% APR credit card that they would always pay them on time, right? Well, many make not. So, every clip a payment is received late credit card suppliers would measure a late fee. With fees ranging from $19 to $39, that tin add up especially if person is habitually late.

Default Rate. Oh, that 0% rate is nice on the surface. Read the “member’s agreement” and you will quickly learn that late payments will not only incur a fee, but a “default rate” would be charged bumping up the annual percentage rate to duplicate figure figs on existing balances as well as on new charges! If you are late you can say, “bye, bye” to your 0% APR credit card in no time.

Short Term Offer. 0% APR credit cards are still offered today. Almost always they are cards for new card holders that offer a 0% rate for a limited clip period of time, such as as twelve months, before a higher rate boots in, which usually is around 12%. Some cards will allow you to transfer existent credit card balances over to the new card and have the 0% rate on transferred balances. What a great manner to cut your costs and salvage money too!

Don’t concern about credit card suppliers having trouble making money even with low or 0% APR credit cards. Rates have got since increased, in some cases dramatically, making it more than hard to happen a low interest rate credit card. Still, great offers exist, but you must cognize where to happen them. Searching online for your 0% APR credit card is a great manner to quickly happen and compare all of the best offers available.

Copyright 2006 Erectile Dysfunction Vegliante. Free online reissues of this article are allowed provided the resource box stays integral with a unrecorded nexus back to http://www.credit-card-surplus.com.

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