Using the 0% APR credit card to your maximum benefit

Duran Mueller
May 9, 2007
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0% Intro APR credit cards are a boon for those who like to manipulate things. These credit cards allow you to save on high interest rates while the offer lasts. How can we use a 0% Intro APR credit card so that it saves us the maximum amount of money? Here are few tips to do it, but make sure you follow the precautions also or things can turn bad.

Don't pay your monthly balance in full when you are using a 0% intro APR credit card. This is simply because you are not paying any interest on your outstanding balances.

Pay the monthly minimum requirements for the credit card. This ensures that you remain in good books of credit card companies. Don't ever default on repayments.

Now suppose you spend $20K over a year (12 months, which is the 0% intro APR period) on a credit card, you get an $18K interest free loan, because you only pay the monthly minimum which is about 2% of the monthly outstanding balance and comes to about 10% of your total balance.

To make sure that you can save money like this there are a few precautions that you should absolutely adhere to:

Keep a track of the 0% intro APR Period. If it is 12 months you have the liberty for 12 months, if its 16 months you have it for 16 months.

Make sure to check out what the 0% intro APR period applies to, balance transfers, purchases, or what all restrictions are there.

When you don't pay the monthly outstanding balances in full, does the 0% intro APR period lapse and a higher rate instantly applies.

What happens to the rewards if you don't pay your balances in full?

Most importantly, the outstanding balance which accumulates at the end of 0% intro APR period should be available with you so that you can dispose off the loan before a high APR rate is slapped on your account.

These precautions and questions when taken care of can make owning a 0% intro APR credit card truly rewarding one.