Credit Card Use-0% APR Purchase
0% APR is actually equivalent to zero interest rate instalment repayment. 0% APR is actually equivalent to a zero-interest installment. As long as the bank's minimum repayment is met, you are free to choose the timing of repayment and the forward spending during the zero interest rate period.
Banks generally give consumers this discount when they open a credit card. In fact, it is disguised to encourage consumers to use their credit cards. After the 0% APR period, the annual percentage interest rate for credit cards generally fluctuates between 15% and 20%. If you have ability to handle your repayments which can make ends meet. Spending with credit card 0% APR and BT is also a way to boost cash flow and address temporary capital issues. Of course, when using the 0% APR, it is important to be careful which can result in a large amount of interest.
Use of 0% APR Purchase
The usual 0 APR is usually a credit card open bonus. Credit card companies typically give a 0 APR time, which varies from 12 to 18 months depending on the company. The interest rate on all credit card purchases during this period is zero.
Use this credit card directly to spend normally. When you pay the minimum monthly repayment, you can settle for more than a year of money owed to the credit card company.
Large bills: tuition fees (credit cards payments don't require a fee); car insurance (semi-annual payment for insurance company discounts, and then slowly pay them back yourself)
Substitute, Nurse: Buy with a credit card of 0APR and wait for the money to be returned and pay it off again.
Plastiq's clever use: in general, government bills (water and electricity), tuition, rent, mortgage, car loans can not be paid directly by credit card or credit card will incur high fees. In order to use the 0APR on the credit card, we can convert an angle and use the credit card to pay the corresponding bill in Plastiq.
Monthly Repayments: Although your APR is 0%, you need to continue to make a minimum repayment to your credit card. Otherwise you will not only have to pay a high late fee, but the credit card company has the right to cancel your 0 APR.
Early Repayments: 0 APR due time and billing date are not necessarily the same. Be sure to pay off all your debts before 0 APR expires, not before that bill. Therefore, it is best to determine the expiration time with customer service and then pay it off in advance. I suggest paying off all the balances before the end of 0APR and the statement closing.
Using 0% APR has little effect on credit scores.
Open the card and use 0APR that credit score dropped by about 50. Since then keeping the minimum payment to the end of the year and during the period there are loans to buy cars and other acts which did not open a new card. The overall rise in credit score is not fast. The second year when you begin to make rapid repayments, and also opened a number of credit cards. By the end of the repayment, the credit score has been fully restored to the pre-claim status. The high Balance of one or two cards does not have a significant impact on applying for a new card or car loan.