How much a person can save with a 0% APR credit card depends on a number of factors.  If the 0% credit card is used for balance transfers, the savings can be monstrous.  If the credit card is used for purchases, the savings can range from monstrous to mediocre.  It all depends on how you use the credit card.

The easiest way to save with a 0% APR credit card is to use it for balance transfers.  With a 0% balance transfer, the average person with a 16% interest rate can save close to $100 for every $1,000 they transfer over the course of a 12 month 0% period.  If that period is 15 months or 18 months, the savings can rise to $120 to $140 for every $1,000 transferred, depending on how quickly you repay your card.

People who make the minimum payments on a 0% APR credit card during the introductory period will reap the most savings with a balance transfer, while those who pay it off faster won’t save quite as much.  Nevertheless, the savings can easily creep towards $500 or more based on the U.S. average credit card debt of about $4500. (more…)

Finding the best low APR credit card is a little more complicated than it may seem. The reason is simple:  most credit card offers carry multiple long term interest rates and you won’t find out what your APR is until after you have applied and your credit card application has been processed.

Until very recently, credit card companies made finding a low APR credit card confusing. In advertisements, card companies listed a credit card’s lowest APR using language like “Get an APR as low as 10.99%.”  Unless applicants took a close look at the fine print, they might not learn that the low APR credit card they are applying for could have an interest rate of twice the lowest advertised rate.

Due to advertising regulations that accompanied the CARD Act, credit card companies are now required to more clearly disclose all long term interest rate information.  Thus, instead of a card being advertised with an APR as low as 11.99%, you will now see interest rates advertised as a range, i.e. 11.99%-20.99%. (more…)

A year ago, most credit card companies were reducing the length of 0% APR credit card offers to as little as 6 months.  Today, some credit card companies are offering 0% interest rates for up to 18 months.  However, if you see an offer with a 0% APR for 15 months or 18 months, there is likely an asterisk next to it.  If this is the case, take a close look at the fine print.

Generally, there are two types of 0% APR credit card offers.  The best kind are straightforward: you apply, you get approved, you get the advertised 0% rate.  Unfortunately, credit card companies like to dangle the best offers in front of potential customers, and one of the ways they do this is by offering the longest 0% interest rates.  (more…)

Although the Card Act may have given many the false impression that credit card applications would not be straightforward, that is not the case.  After the major elements of the new credit card laws took effect, major credit card companies were prohibited from engaging in a plethora of bad behaviors.  This means there will be no anytime retroactive rate increases, but new credit card applications show that banks are trying to make up for this with new cardholders.

The practice of offering 0% interest rates for up to 12 or 15 months, but only granting that rate to a small portion of applicants remains rampant.  If you are looking for a 0% credit card, be sure to check the application carefully and avoid “up to” rates unless you have a 780 or higher credit score. (more…)

Credit card companies work very hard to offer you credit cards that fit within your parameters.  This is great news for you because there is a credit card that can be right for you out there.  You just have to do a little research to find the best credit card for you.  To discover the perfect card consider your situation. 

Do you have credit card debt?  If yes, then you need to seek out balance transfer offers with 0% interest.  Credit card companies offer 0% interest on balance transfers from 6 months up to 15 months.  The typical credit card provides one year without interest.  These cards can save you more than $150 in one year depending on the balance transfer fee and how much you have been paying in interest.  (more…)

If you are a last minute shopper for a credit card, time is running very short if you want to have that credit card in time to purchase holiday gifts.  A few years ago, it was possible to apply online and get instant access to your account and credit limit.  Today, the vast majority of credit card companies do not provide instant access to new credit card accounts.  Ultimately, this means you won’t have access to your credit card until it arrives in the mail.   This can be five to seven days, if not more during the busy holiday mail season. (more…)

The days of the instant approval credit card are all but finished.  While a few companies continue to advertise instant credit decisions and sixty second approval, the vast majority of credit card companies no longer provide approval decisions immediately.  This will come as a not so pleasant surprise to anyone hoping to get a credit card in time for black Friday, since the odds of that occurring are stacked against you.  In fact, someone applying for a credit card today would be fortunate to have a card by the first of December.

Today, anyone applying for a credit card is likely to wait a minimum of five business days from the time they apply to the time their card arrives in the mail, though ten business days is probably a safer window.  The reasons for this are manifold and stem from the movement away from purely computer generated analysis to human reviews of applications.  This slows the application process down, often by a few days and is intensified by the busy mail system this time of year.

Given these factors, anyone seeking an instant approval credit card to pay for holiday gifts would likely need to apply by the 10th of December at the latest if they wanted to spend on a new credit card.  Applying any later could leave you waiting by the mailbox until its too late to find anything worth buying.