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The least expensive credit cards are the ones that charge
the lowest interest and that do so for the longest period
of time. Keep a look out for credit cards that begin with
high interest rates and that tie the interest rate to any
economic indicator. With these variable rate cards, the rate
changes in accordance with the economic market conditions.
Some credit cards start you off with a "teaser,"
lower interest rate that is temporary, and can last from 90
days to 12 months. This rate can actually be 0%! The trick
of managing your finances with this type of credit card is
to take advantage of the 0% by transferring other balances
to that card and paying them off as quickly as you can.
How To Find 0% APR Credit Cards
It is usually difficult to find 0% APR credit cards that
offer no interest for more than six months. One place you
can inquire is with your bank, and since they need more business
they may send you such attractive offers with your checking
account statement.
You can also find 0% APR credit cards associated with such
entities as college alumni associations or with specific professions.
In some cases, offers for 0% cards will come in your mail
in coupon packets or in your newspaper. Look for advertisements
on television as well. Whenever you find a 0% APR credit card,
the three things you should be aware of are:
- The duration of the no-interest period
- Whether you can transfer other balances at the 0% rate
- Most importantly, what the APR rate will be when the offer
ends!
For people who do not make monthly payments in full and
who tend to carry a large balance every month, it would be
advisable to go for cards that offer a lower finance rate.
You can then maximize your savings with the low interest rates.
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