0% APR Credit Cards: Pros and Cons

Learn more about 0% APR credit cards and avoid trouble!

Before you jump into choosing a 0 percent APR credit card, it’s a good idea to get familiar with both the perks and the potential downsides.

Understanding these factors can really help you make a smart choice and avoid ending up in a tougher financial spot than you were in before.

Here are the pros of 0% credit cards

If you’re considering a credit card with a 0% introductory rate, you should know that these cards can be super helpful if you know how to make the most of them.

Sure, the big draw is avoiding interest, but there are a bunch of other reasons why they might be right for you. Let’s break it down!

Say Goodbye to Debt Faster

One of the coolest perks of a card that offers balance transfers and a 0% intro rate is how it can help you pay off your debt more quickly.

Without interest piling up each month, every payment you make goes straight to slashing your balance.

Picture this: you have R$ 4,000 in debt on a card that charges 20% interest annually.

If you pay R$ 200 a month, it’s going to take you about 25 months to clear that debt—and you’ll pay around R$ 906 in interest along the way!

Now if you switch to a card with a 0% intro rate and keep up those same payments, you could be free of that debt in just 20 months without paying any interest!

Lower Your Monthly Payments

Switching from a high-interest card to one with a 0% intro rate can really lower your monthly payments.

Just keep in mind that once the promotional period ends, your interest rate will revert to the card’s regular rate. So, while you’ll enjoy those lower payments at first, it’s not a long-term fix.

Score Rewards and Extra Perks

Another awesome thing about some 0% intro rate cards is that they let you earn rewards on your everyday spending.

That means while you shop, you can rack up points or cashback and still benefit from that introductory rate when it comes to paying bills. Plus, many cards come with perks like cell phone protection, purchase coverage against damage or theft, and extended warranties.

Boost Your Credit Score

Lastly, using any credit card responsibly can help you improve your credit score. Paying down your debt lowers your credit utilization, which is super important for your FICO score.

And remember: making those payments on time is crucial for keeping your credit history solid.

If you want to check out how is your credit score going, make sure to check out the annual credit report right here!

Cons of 0% credit cards

0% interest credit cards can seem like a dream come true, but there are a few things you should be aware of before you dive in.

Missing Payments Can Cost You

If you happen to miss a payment, you could lose that 0% introductory rate. Many card issuers have the right to end your promotional period if you fall behind.

And in some cases, you might not just go back to the regular APR—you could end up with a penalty rate that’s as high as 30%.

So, staying on top of your payments is really important to avoid that headache!

The Introductory Rate Has an Expiration Date

Enjoy that 0% interest while you can! It’s a limited-time offer, and once the introductory period wraps up, your card will switch back to its regular annual percentage rate (APR).

Balance Transfers Might Not Be Included

Many of these 0% APR offers apply mainly to new purchases. Some cards do allow 0% on balance transfers, but that’s not always the case.

 Make sure to read the details carefully to confirm that balance transfers are part of the deal before you sign up.

So, with all this information in mind, you can make a more informed choice about whether a credit card with a 0% introductory rate is the right fit for you or not. It’s all about finding what works best for your financial situation!

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Written by

Everaldo Santiago