Get More Information About 0% APR Cards

In brief, 0% APR credit cards allow their holders to defer interest payments on their credit card balance for a fixed introductory period. There are two types of 0% APR credit cards on the UK market today, balance transfer cards and 0% purchase cards. Balance transfer credit cards are the most popular credit card in the UK, and with the benefits they offer to a savvy cardholder and the multitude of cards to choose from, it is easy to see why.

In brief, balance transfer credit cards offer the cardholder the option to transfer an existing debt from another credit card (or indeed multiple cards) onto a single card, and pay no interest for a fixed period of time. Most balance transfer card issuers stipulate a timescale by which all balance transfers must be completed, in order to benefit from the introductory offer (typically around 60-90 days). You should check your chosen card carefully to ensure that all your debts are consolidated well within this timescale.

Nothing in life is free, and transferring a balance is no exception (unless you opt for a ‘no balance transfer fee card’, where the balance transfer duration is almost definitely shorter). Typically the fee charged is around 3% of the balance you are transferring, and this is added to the credit card balance.

It is the general rule that the higher the balance transfer duration, the higher your credit score/rating needs to be. With this in mind, before you apply and are perhaps rejected, it makes sense to check out your credit history with one of the 3 credit reference agencies (Equifax, Experian, or CallCredit).

0% purchase cards, as their name suggests, offers the cardholder a specific period of time where they pay no interest on their purchases. These cards can be particularly useful if you have a large purchase, or indeed a number of small purchases, which you need to pay off over a number of months.

Whilst it can be tempting with such cards, you should never overspend on your 0% purchase card. Remember that the balance you accrue with your credit card spending needs to be repaid within the specified time period, else you will be left paying any remainder at the standard APR rate.

Look at the APR - With the tempting array of 0% APR cards available, it is easy to forget to look at the interest rate itself. However, this is important because even with the best will in the world, you may end up paying any existing balance at the end of your introductory period at this very rate. Choosing a 0% card with a comparatively high APR may result in undoing all the good work you have done in paying off your debt.

Stick to the rules - Whether you choose a balance transfer card or a 0% on purchases card, always pay at least your minimum payment on time and in full, and remain within your stated credit limit. Failure to adhere to the terms and conditions of your 0% offer, will result in an immediate withdrawal of your introductory rate, and you will start paying the standard APR on your entire balance.

Try not to spend on your balance transfer card - Balance transfer cards should only really be used for consolidating and paying off your debt. In general, balance transfer cards have a longer balance transfer duration than a 0% on purchase duration (transfer & purchase cards are the exception to this rule). As such, if you spend on your card, you will be paying the regular APR on your purchases at the very time you are trying to reduce your debt. If you need to use a credit card for spending, it makes more sense to apply for a separate 0% purchase card. Never take out cash with your credit card!

The quickest and easiest way to get a 0 APR Mastercard is to do an online search. You will find hundreds of search results that link to sites offering special introductory deals. However, the best way to find, research and choose the best credit card offers is to use a credit card comparison site.

These sites vary in quality but the high end services offer a lot of helpful information on debt management and wealth creation as well as specifically about credit cards. They also provide detailed comparisons between the various credit card offers so that you can easily see the differences. This will help you make the best decision quickly. Most of these sites also allow you to apply online for your credit card.

This makes the whole process very quick and easy. Transferring your current credit card balances to a 0 APR Mastercard is a fantastic way to save a significant amount of money immediately. Let's face it, monthly credit card bills can place a significant amount of stress on individuals and families.