If you have plans of applying for a new credit card, why not consider getting a 0% interest credit card?Below is a guide on how to choose the right 0% APR credit card:
Check out credit card review sites and compare.
You can shop around easily by visiting websites that offer reviews and comparison tools online. However, bear in mind that some sites may be sponsored by a credit card company so that only the best things about the card are presented. Use reviews to narrow down your choices but be prepared to do further research.
Compare the introductory period.
The 0% interest rate will obviously not last forever. However, you want to find a card with at least 6 to 12 months introductory period so you can enjoy the 0% interest rate card much longer. Thus, when you transfer you balances, you can focus on repayment without worrying about additional interest.
Read and understand the credit card’s terms and conditions.
Don’t just scan through the fine print and submit your application. Spend extra time reading every statement in the contract. Pay attention to costs, penalties, disclosures, and restrictions. This is the only way you can compare different credit cards accurately.
Watch out for the universal default clause.
Some issuers may still impose the universal default clause which means one late payment gives them or other creditors the right to change your current rates and fees.
Strictly adhere to your payment schedule.
Your issuer may lift the zero interest rate offer if you fail to make payments on time. You could even get charged with a higher rate if you often miss your due dates.
Check the regular interest rate.
How much is the regular rate of interest when the zero APR introductory period ends? To avoid getting stuck with a high-rate card, you must look beyond the promotional offer.
Inquire from your issuer how much is the regular APR and how it is calculated. If your credit card uses a variable-rate calculation, then the interest can increase based upon the Prime Rate in the market.