If I have a credit card with 0% apr what exactly does that mean?
Answers:
APR stands for Annual Percentage Rate - which in simple terms is the interest charge by companies on outstanding credit card balance. So a 0% APR means no interest is charged from the credit card holder.
0% APR credit cards come with many flavors:
0% APR for the life of credit card
0% APR for a limited period
0% APR offers for some services and a different APR rate for other services.
A credit card holder should face the fact that this kind of offer is only a marketing strategy and won't last for long. This is because that a credit card company is there to make money for their services and the APR is their leading money spinner. The 3 must ask questions listed below will surely help you get a perspective on your 0% APR credit card and make an informed decision. readmoe about apr at: http://www.credit-card-gallery.com/artic...
a month or a two weeks and if they are nice more than a month no interest to pay, after that period has gone, they can nail ya... really hard with a interest of 20% or more
APR stands for annual percentage rate. This represents the amount of interest you would pay each year for a balance on your credit card (the balance represents things you have purchased with your credit card that you have not payed the credit card company back for yet).
EG. If you buy a refrigerator for $1000 using your credit card, at the end of 12 months you would owe $1000 and 0% interest. BE CAREFUL!! Many credit card companies offer 0% interest for 6 months or a year as a promotion and then after this time period charge anywhere from 10% to 20% or more annually.
What it means is the credit card company is willing to loan you the amount that you charge for free. They are gambling on one if not all of the following.
1. You will not pay exactly as agreed in which case they will start charging you a "default" APR.
2. You will pay off the balance before the 0% period expires.
3. You will charge more in addition to the amount that falls under the 0% guidelines.
4. They will make money on annual, over limit, late payments fees.
0% can be a good deal if you need a small amount for a short time AND you are very disciplined.
it means you dont have a annual percentage rate, which means if you buy something their is no interest.
It means you'll be charged a 0% interest for a period of time.
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