0% Credit Cards Tips

It's relatively easy to choose one of the dozens of currently available zero percent credit cards, but it's still important to educate yourself. This article covers the main features that you'll want to look for when choosing your zero interest credit card.

Introductory Period - This is the amount time that you have until your interest free annual percentage rate runs out. A typical time frame is any where from three to nine months for purchasing cards and six to 16 months for balance transfer cards.

Introductory APR - An introductory annual percentage rate is the amount of interest that you accrue on your credit card balance for a predetermined period of time. This means that if you qualify for a zero percent credit card, you'll have several months to pay of your balance without interest. If you have a balance transfer card, intro APR refers to the interest on your balance, while you pay it off.

Ongoing APR - Because your introductory rate is just that, "introductory", it won't last forever. The Ongoing APR is the rate that you'll be charged once the intro APR ends. You'll obviously want to be looking for a low number in this column.

Default APR - Your annual percent rate typically applies to the amount that you have on the balance. The Default APR is the amount that you're charged for penalties like exceeding your maximum allowance, or failing to pay your monthly minimum payment. Though it's capped by government regulation, this characteristic is typically much higher than your ongoing APR.

Rewards - These are the perks that apply to charging to your credit card. Some of the more popular rewards are frequent flier miles, cashback programs, and hotel points...the list goes on. The key is to find a rewards program that best suits your fancy.

Transfer Fees - Nearly all zero percent balance transfer cards include a transfer fee. This fee is typically a percentage of the balance being transferred. It goes without saying - the lower the rate the better - you're going to be looking for 2% on the low end and 5% on the higher end. Use the previously mentioned attributes to weigh out which option works for you.

Minimum Fee - This is the minimum payment accepted to transfer a balance with one company to another.

Maximum Fee - This is the most that the lender will charge you for a zero interest balance transfer.

Zero percent credit cards have the potential to be very valuable tools, but you need to make sure that you're well informed on how to use them. Visit this source on zero percent feature credit cards for all the information you need for making a responsible decision.

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