You see the ads for low-interest, zero percent APR accounts around the corner. Do you realize that they come from credit card companies?
Most of them are.
We’re talking about Visa, MasterCard, Discover, American Express, and more.
Interest rates on these cards vary by credit card type. But, you never know who’s offering the lowest interest rates (even by using your card!).
Most of them are just being deceptive – the cards offer zero percent APR – for a limited period only. Once that period is up, the APR generally dips to 15% or 20%.
Most of them are ideal for people who can afford to pay off most or all of their credit card balance each month. Plus, if you have good or excellent credit, paying off your credit cards at least once a year won’t hurt.
If you can pay off your credit card within 30 days of getting your low interest sign up, you’re getting 0% APR credit for up to 3 months!
You may be surprised to hear that some lenders charge absolutely zero interest for late fees. But, only when it is due on one or more of the best-known cards: Visa, MasterCard, Discover, or American Express.
Most low-interest cards are ‘guaranteed’ purchases for individuals – unlike a credit card promising you no interest at all.
Many of these cards have no annual fee – while the Discover card charges no annual fee – but this card only features a 0% APR on the balance transferred for 6 months.
Listed in alphabetical order, are:
Avail: Visa, MasterCard, Discover, or American Express
Interest Rate: 5% (no interest free period)
Bonus% Interest rate: Variable
The card may or may not offer the 0% Interest on any unpaid balance for up to 3 months. That’s because most credit card companies offer this and you can be assured that they guarantee no interest free period, regardless if you can pay off your credit card or not.
As for what the APR will be, you may have to wait until you’ve already paid off all of your cards before you know for sure. So decide on the better card you have to dive right in and get 0% APR credit for 6 months on your existing cards for good measure. Also, try to pay at least the minimum number of full-time employees, as that will help you teach rate. It’s always better to have a single unpaid “entrant” for credit and balance transfers before you sign up the card.
The credit card companies cannot be caught in this mindset of ‘everyone has to pay their share’ by offering low interest, zero percent APR cards. Why? Well, it’s because they have become an asset to their bottom line.
What’s worse is that you’ve got to pay your bill, which is normally a huge expense, with interest rates of up to 39.99%. The interest rate on interest-free purchases is often much higher than the 24-37% rate of the traditional offer’the company’s already getting into debt on your debt. So your credit rating is just as important as the outstanding balance on your credit cards. Once you sign up these cards, you’ll soon realize, ‘I’m in trouble.’ Now, for another reason why ‘everyone has to pay their share’ is that those 0% interest rates just don’t happen to be available in the market.
In time, most credit cards are going to be phased out and replaced by loyalty or other offers that are geared for a particular group of customers.
If you’re looking for a credit card with zero balance, zero APR, zero fees (or 0% APR free), and a zero introductory APR, your best bet is to go with Visa, MasterCard, Discover, Discover Gas, or any of the several gasoline banks. Since those banks also have 0% interest rates, you can expect to pay a great deal less toward your balance in the long run.
But, if you’re looking to have zero interest and 0% APR credit cards, be careful what you read in many of the fine print on any of these cards. Many banks have changed the introductory rates after a few introductory offers have been excellent. Often, you’ll earn a set rate for a period of time, and then the money in the bank’s account will start flowing in interest. You might even be charged interest on purchases that you haven’t made in the first two months of owning the card – but are making anyway. Then, with time, your interest rate will go up to a higher rate.