How to Compare 0 APR Credit Cards


Visitors: 118

When a credit card is advertised as being 0 APR, the company/bank is in effect stating that there is no Annual Percentage Rate (APR) of charge. The APR is the rate at which interest is calculated on the unpaid balance of your card.

Not all 0 APR credit cards are equal. Actually, in the long run, 0 APR credit cards can turn out to be pretty expensive. Most of these cards offer this low rate for a short period of time, usually for six months to twelve months. Once the introductory period is up, the rate goes up. Based on this, be sure to find out if the APR rates that will chip in after the introductory period is a fixed rate or not. A fixed rate APR will remain the same, while one that isn’t will change over time.

To make a decision on a 0 APR credit card, you need to compare the following:

  • The introductory period for which the 0 APR runs

  • The regular APR after the introductory period ends

  • What are the annual fees applied to the card

  • If you are able to transfer balances, and

  • The type of credit rating you need to apply for and receive a 0 APR credit card.

    The grace period before any penalties are applied to your 0 APR card should be taken into account when comparing different credit cards. Some 0 APR cards attract higher interest if bill is unpaid beyond the grace period.

    Another feature that should be compared is the fees that are attached to your card, since these can really add up and your 0 APR will mean nothing.

    You will also want to see what other member's benefits you get with this card before making a final decision. For instance, if you are the type of credit card holder who does not pays off your balance each month, a 0 APR credit card may be just the thing for you.

    To compare 0 APR credit cards , Eric Wasselman recommends Find Credit Cards.

  • (358)

    Article Source:

    Rate this Article: 
    What Is APR And How Does It Affect Credit Cards?
    Rated 4 / 5
    based on 5 votes

    Related Articles:

    Zero Interest Credit Cards - Zero APR Beats Low APR

    by: Jacob Mathews (April 15, 2008) 

    Zero Interest Credit Cards Using 0% APR Credit Cards to Get Out of Debt and ..

    by: Jacob Mathews (June 29, 2008) 
    (Finance/Credit Counseling)

    0% APR Balance Transfers How to Find the Best 0% APR Balance Transfer Credit ..

    by: George Atwill (June 19, 2008) 

    0% APR Credit Cards: How Can They Do That?

    by: Ed Vegliante (January 04, 2006) 

    Zero APR Credit Cards

    by: Marsel Sula (April 18, 2008) 

    Low APR Credit Cards

    by: Beth Pardue (October 07, 2005) 

    How To Get 0 APR Business Credit Cards

    by: Gordon Goodfellow (March 26, 2008) 

    Credit Cards and APR Fees

    by: Caden Flynn (September 23, 2008) 

    How to Apply For the Best APR Credit Cards

    by: Gordon Goodfellow (July 29, 2008) 

    What Is APR And How Does It Affect Credit Cards?

    by: Renee Flowers (February 19, 2007)