Every consumer prefers to spend less for more goods or services, introducing 0% APR on credit cards can not be more welcome especially if it comes at a time when you are overburdened financially. The rate at which a credit card service provider charges its clients over a period of one years' service is dependent on so many factors ranging form e client's own credit scores to other marketing strategies that the company may find necessary for the company. In most cases, the 0% APR is used as a strategy to lure new clients into the fold, they go to the extent of even including an interest free introductory period to make the offer more lucrative.
How can one benefit from 0% APR?
0% APR can be very instrumental in the life of a client whose credit card debts are taking a nose dive into troubled waters. There are times in your financial life when the expenditure versus income equation just won't balance. During such times, you feel so constrained that a simple waiver can make the difference in your ratings even though it might have looked insignificant during your high flying moments. The best action t take when faced with financial burdens is to try and reduce any expenditure whenever possible. Since renegotiating with an existing lender to reduce his rates is never an easy task more so when you have registered some difficulty in payment in the recent past.
The trick may sometimes lie in consolidating the accounts intone and going for a make o break run. This could be executed in the form of a swift change from the overburdening credit cards to the 0% APR credit card with an introductory period offer of 0% interest rate. if this offer lasts for six months, you may be able to register new scores if you maintain timely payment and as a result even be able to renegotiate new terms basing on the new scores.
Advantages of 0% APR credit cards
The advantages of 0% APR credit cards are quite evident in the reduced cost of maintenance; however there may as well be some few disadvantages that may be linked to the same. By transferring an interest bearing credit card to a 0% credit card you save money by avoiding the interest rates that you would have otherwise paid to the previous lender. The transfers you carry out at this zero rates could help you recover on some of your already overdue payments and give you some grace period to reorganize yourself.