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0 apr credit card offer

A 0 APR credit card offer can be found fairly easily these days as many lenders make such offers to entice customers to open accounts. The zero interest can refer to either balance transfers, or it can refer to purchases or sometimes to both, so be sure to check the details of each offer when you are comparing them. This article will tell you how to use these offers to your benefit.

While the initial zero interest is of course very valuable, it is not the only detail which should be considered when choosing one. The length of the zero percent interest period is also important and is sometimes one year but can vary. Other important points are annual fees, and rewards such as cash-back, air miles, special deals etc.

There are two main ways of using zero percent balance transfer offers. One method can result in not having to pay any interest at all on existing loans and the other less well-known method can actually make you a profit, with no costs at all!

The first method is to use the offer of zero percent interest on balance transfers to transfer your existing borrowing to the new card. This saves having to pay any interest at all on that borrowing for the extent of the initial zero interest period. This can be a major advantage to some people, because with a high-interest card the minimum monthly repayment is often little more than paying the interest each month and hardly paying down the borrowing at all, which means the borrower is not improving their situation much. Because of this factor, avoiding the interest for a year or so can result in paying down the borrowing itself and thus making real financial progress rather than almost standing still.

The other main use of a zero percent balance transfer offer is to make money. Not many people do this, but it is easy and very well worth doing. The process involves using the available funds to pay into something which generates a profit. Probably the safest way to make the profit is to place the capital into an interest-bearing bank account, then to repay the borrowing just before the initial zero-percent period expires. This means that all the interest made, is pure profit!

Other areas of investment can be done using a credit card, but are usually more risky. As we have seen in this article, a 0 APR credit card offer can be very valuable if used carefully.