0% APR Credit Cards

Almost everywhere you look, someone is offering a 0% APR credit card. The credit card industry is saturated with issuers that strive to be competitive with the best deals. Credit cards with 0% financing are intended to solicit new customers. However, the banks who issue them are in the business to make a profit. The low interest rates that you see advertised may not be all that they seem. There are a few things to consider before opening a new line of credit with an introductory APR.

All 0% APR or extremely low APR offers apply to an introductory period only. According to the provisions of the Credit Card Accountability, Responsibility, and Disclosure Act that went into effect in February of 2010, introductory rates must last a minimum of six months and rates in general cannot spike within the first year. However, there are no restrictions on the amount of interest that can be charged after the introductory period is over. Also, when payments are consistently late, it may entitle the card issuer to raise rates at any time.

In addition, many people with existing lines of credit decide to take advantage of 0% financing in order to safe on interest payments by transferring balances from one card to the next. However, in the fine print of many credit card terms you may find expensive fees assessed for balance transfers. Sometimes there is even a fee for every $100 that comes from another line of credit. Transferring balances can cost more money than it can save if you are not familiar with your card's policies.

Before accepting any credit card offers, be sure to shop around. There will always be more than one company offering 0% financing. Some may have better terms and benefits than others. Also, read the terms you are agreeing to carefully and be wise about going into credit card debt. Often those introductory rates are over with before you know it. High interest charges can be difficult to repay, leaving many people in trouble after a short time.