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0 APR Credit Card Offers

0 apr credit card offers can be very valuable to either save money or make a profit. This article will tell you exactly how to do both these things effectively.

The word APR means "Annual Percantage Rate" and refers to the interest rate on the card. So yes you really can find many these days which charge no interest at all for an intial period which can be a year.

The first point to bear in mind is that the zero precentage can apply to different things. On some cards it applies to purchases, which of course can enable you to buy things without paying any interest for the initial period, which can be very uesful for some people. However, many zero percent initial rates apply to balance transfers which can be even more valuable as will be detailed below.

A 0% interest rate if applied to balance transfers can be used in two main ways both of which can be of great advantage to ones finances. The first of these ways can be used to save a lot of money on existing borrowing. What you do is you transfer the existing borrowing onto the new account and thereby avoid having to pay any interest on it at all for the initial period. This can be a huge benefit as many people typically make monthly repayments which barely cover the interest charged on their debts and so the debt itself stays about the same even though one is making a monthly repayment on it. So if the interest is completely avoided the same monthly payments wil be applied to reducing the debt itself instead of just paying off the interest.

The second way a balance transfer zero rate can be used is to actually make "free money". This is done by using the available funds on the new account to pay into another account which pays interest, such as a savings account. Then when the funds are repayed at the end of the 0% period, the interest recieved from the savings account is pure profit! Occasionally this approach is applied to other forms of investment other than a savings account, but most other types of investment carry a greater risk.

0 apr credit card offers can be a great help to ones personal finances, as has been detailed above.