How To Save Money With 0% APR Credit Cards

Save Money with credit cards at 0%APR

People who have a large credit card debt find 0% APR credit cards a tempting prospect. Most credit card companies offer 0% interest rates or other incentives to attract new credit card companies.

Typically, 0% APR credit cards offer this reduced rate for a limited period of anywhere from six to 12 months. After that time, the rate reverts to the standard annual percentage rate.  However, savvy customers can use these offers as a way to eliminate credit card debt.

Through a practice known as rate surfing, serial switching, credit card jumping or being a credit card tart, people can use their credit cards for debt consolidation and eventually elimination. To achieve this requires some organization, but it's a strategy that most people can use successfully.

Credit Card Debt Consolidation

First of all, apply for a 0% APR credit card. This can be done through an online credit card application or an offline paper application. Provided your credit history is good and you meet the lending criteria, you'll soon have your credit card. All you have to do is transfer the outstanding balances from other credit cards, store cards and loans onto the credit card. This is great way of consolidating your credit car debt. You can then continue to make payments as usual. These will clear the outstanding balance and you won't pay a penny in interest.

The key to using 0% APR credit cards successfully is to make a note of when the 0% interest rate expires. At least six weeks before that date, shop around for another 0% credit card. Once that comes through, transfer the outstanding balance to the new card and make repayments as usual.

Successful Rate Surfing

Rate surfing can be a risky strategy, even with 0% APR credit cards. Successful rate surfers often note down offer expiry dates in their diaries. Missing these could mean that they get a whopping interest bill which negates the benefits of a 0% credit card. It is also wise to make the required payments in full and on time to avoid incurring any late payment fees.

While this is a good way to eliminate credit card debt, credit card companies have got wise to the practice of rate surfing. Many of them now charge a balance transfer rate of up to 3%. This means they don't lose out on the interest. However, there are still a few cards that don't charge this rate and those are the credit cards to look out for. Get one of these credit cards and you could get 0% credit forever. It's no wonder so many people are applying for 0% APR credit cards.