Having a 0% APR credit card is indeed wonderful, but only if you know how to use it wisely. Here’s what you can do to enjoy a trouble-free time with this kind of credit card.
Tip #1 Look for the longest promotional period. 0% APR offers unfortunately never last for a lifetime. They can last anywhere between six months to a maximum of one year. Once that time period expires, you’ll have to join the rest of humanity and pay interest charges for your credit card. Thus, when looking for a 0% APR credit card, try to find one that you can enjoy the longest.
Tip #2 Look for the lowest possible rates. Once the 0% APR offer expires, you’ll start facing the risk of paying interest charges if you don’t pay your credit card bill on time. And that’s why you need for the lowest possible rate from your future credit card. This early, you need to prepare for the future and look for the easiest way out of credit card debt.
Tip #3 Check your credit score. You’re entitled to one free credit report from each of the three major bureaus in the country, namely, Equifax, Experian, and Trans Union. See if you’re considered a good credit risk or not. If you fall on the latter category, try improving your credit first before applying for a 0% APR credit card. You can avail services of a credit repair agency if necessary. Once your ranking has improved, that’s the time you should apply for a credit card and you just might qualify for even better interest rates.
Tip #4 Multiple credit card applications can immediately hurt your newly repaired credit score so it’s best to know beforehand what kind of credit card you truly need. Compare rates and features. Ask yourself what else do you need from a 0% APR credit card? Are you more interested in having a low interest card or do you prefer a reward based credit card?
What other privileges, benefits, or features are you looking for in a credit card? Consider having automatic insurance, online management, and customized designs for your credit card. Choose carefully because it’s best that you only apply for a credit card once.
Tip #5 Prepare other documents you may need for the application process such as proof of identification and income. If you are not yet working and still in school, you will have to submit proof that you are indeed a student. Having excellent scholastic records help, by the way.
Tip #6 Pass your application together with your requirements. If you’ve completed all the requirements and you’re not categorized as poor credit risk, you’re sure to have your 0% APR credit card on your hands in no time.
Tip #7 It’s time to enjoy your credit card, and you should indeed enjoy it to maximize the 0% APR offer. If you’ve got big purchases to make, now’s the best time to do it because you won’t have to pay any interest for it. All you need to worry about every month and for as long as the promo period lasts is paying for the minimum payment required.
Tip $7 All good things must come to an end, however, and the same rule applies to having a 0% APR credit card. At least three months prior to the expiration of your no-interest status, start tightening your belt and try paying off your credit card debt as much as you can. That way, when your 0% APR status expires, you won’t have a heavy burden on your shoulders.