How Much Can You Save with a 0% APR Credit Card
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…)
