0% Credit Cards in the UK
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Brand
Comparisons |
Benefits
of 0% Credit Cards |
Credit cards are very useful as it lends money to the consumer without having to remove the amount from the account. As such many people tend to use the credit card unwisely so that in a short span of time gets into debt. What one need to do is to better pay off the balance monthly which will certainly help you prevent interest expenses. But for those who have to carry the balances on the credit cards, it’s very difficult to save. As such some of the major credit card companies like Visa, MasterCard, Amex and Discover offers the 0% credit cards. 0% credit cards are actually a special introductory annual percentage rate. These cards offer a 0% interest rate for a brief period and usually, say after six months raises the APR. This low 0% introductory offer is very helpful for some credit owners as it gives the chance to save. To understand how this 0% works, lets estimate it with a 20% fixed interest rate card that allows six months at a 0% rate, which will increase to 25% later on. For calculations let’s take $1000 balance for a year too. Say your expenditure is $200 on a 20% fixed interest rate; thus $1000 multiplied by .20 is $200. Also a card with a higher normal rate but with a lower introductory APR, it will be $250 for a year with a fixed APR of 25%. However if for the first six months, its 0%, then lets divide that by 2; we get $125. Thus, able to save $75. The above estimates shows that with a 0% APR, these credit cards are able to save a lot of money eventually. Every major credit card company’s offers of 0% credit cards varies and the one suitable for you may not be so for some others. Therefore before applying for these low rate cards, it would be a good idea to consult a financial advisor to choose the credit card company offering the 0% rate that will suit you best. Some of the 0% are for six, some for twelve months, fifteen months and so on with various benefits offers. |
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Kinds of Cards |
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Copyright 2008 0% Credit Cards UK Guide Articles
By Kate Spencer. All rights reserved |
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