Every person’s financial status is unique to themselves but when it comes to choosing that all important new credit cards then most people are left asking the same questions.
There are a lot of very good and generous offers on credit cards nowadays and it may confuse some customers who cannot decide if they are better off going for a card that gives them a consistently low APR or one that gives them 0% interest for a few months. Of course as everyone’s financial needs are different then there is no right or wrong answer to this question.
Accepting a credit card that offers you a 0% interest rate as an introductory offer is a very good idea if you have a debt on another card that you would like to decrease.
This is because these cards will basically allow you to pay off the debt you have accrued already. This is because you will pay a one time only balance transfer fee that is typically around 3% of the total outstanding balance owed.
Unfortunately if the amount you currently owe is not big enough then you may find that you will have to do a lot of work to reduce your debt and you may want to avoid these accounts, this is because these types of offers usually carry a high interest rate after the initial introductory offer has finished.
If you are the type of person who like to pay their credit card balance off in full at the end of each month then this type of offer will be good for you as the monthly interest rate will not be of concern for you as by paying off the amount in full you will avoid paying interest.
Credit card issuers that offer a low APR is a good idea if you do not have a large amount of debt on your card and you wish to carry over some of that debt month to month. This is due to the fact that you will be able to make sure your balance is lower than with the monthly repayments of other credit cards.
You need to bear in mind of course that these introductory offers are usually only available to people with impeccable credit ratings which means you may have to shop around a little bit more if your credit rating is not up to scratch.