0% APR Credit Card | Zero APR Credit Card

Zero Percent Interest Credit Cards - How To Get Approved

0 Percent Apr Credit Cards

0 Percent Apr Credit Cards

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Frequently Asked Questions

1. QUESTION:
   Is APR the same thing as monthly interest on a credit card?
   Will I be charged interest monthly or annually on a card with an APR? Or both?

   I use a credit card to pay my tuition so I'm not burdened with paying back loans later. So far, I have been at a community college and have had zero percent interest credit cards and it has been no big deal. I'm not accruing more of a balance than the cost of tuition because I pay it off completely before the zero percent runs out. However, I no longer have a zero percent card AND I am starting my Bachelor's degree which is exponentially more expensive!

   So, is a card with 0% APR the same thing as what I was doing before, or would I be accruing monthly interest?

   Thank you for your help and I hope this question is clear enough.

   • ANSWER:
     APR stands for "Annual Percentage Rate." The monthly percentage rate is one twelfth of the Annual percentage rate because there are twelve months in a year. Do a litte simple multiplication, though, and make sure that the credit card company isn't hitting your APR a little bit harder by rounding up the monthly percentage rate.

     Zero percent is, well, zero percent. Zero times twelve is the same as zero divided by twelve, so if you can keep that sweet deal you are golden. Since you are good about paying off your balance each month, go a step further and pay it off a few days earlier each month so that the cradit card company receives your payment before the billing date of your monthly cycle. That way, your monthly statement will show a zero balance and your credit score will start to skyrocket. Be warned, though, that the high credit score you are building will lure dozens if not hundreds of other credit card dealers to your mailbox. Shun them like the oily shysters they are!

     I'm very proud of you!

     Best Regards,
     Grandpa Frank
     Indianapolis

2. QUESTION:
   is obama raising credit card apr?
   my friend kim said obama is raising apr but my bf;s sister said he is lowering them? help whats goin on i have a credit card wiht 0 percent till nect year and she is saying that the 0 percent is going ot be taken away becasue of this new crapola law

   • ANSWER:
     He's not doing it directly, but as a consequence of actions by Obama and CONgress, banks are not going to be able to make money the way that they have been and they will have to find other ways. So they will likely have to shift the cost to responsible customers who pay on time and don't go over their limit. So you will see fees, fines and interest rates go up. They will REALLY go through the roof when Obama and friends raise taxes. This will happen because the rich who keep their money in banks will have less to keep in the banks. Either they will hide their money elsewhere(outside of the American economy) or they just won't have as much in their accounts. That leaves less money for the banks to loan and with higher taxes more people will be looking to borrow to make up for lower take home pay. Higher demand of smaller supply gives you higher interest rates and fees. So much for the lower taxes for 95% of working Americans. You'll pay a few bucks less each week in taxes and pay a whole lot more in higher prices and higher interest rates. Overall we all lose.

3. QUESTION:
   Credit Card question about APR?
   What does annual percent rate mean? If a credit card charges a higher APR with a minimum finance charge of [FAQ-QUESTION].50, with variable percentage being added to the Prime Rate ?

   What is a cash advance that adds APR percentage to a credit card membership?

   Basically, I'm trying to find out how much it will cost me money to use this credit card alone. It claims all these benefits such as 3% back for dining out and stuff.

   • ANSWER:
     Annual percentage rate (APR) is what the card company charges you per year for borrowing money (charging to the card). Usually card companies computer interest daily, so for example, if your APR is 9.99%, a pretty good approximation of monthly interest is (9.99/100) / 365, that is daily, then times 30 days or so. In very simple terms, a card with 00 balance on it will be charged roughly 0 per year with 10% APR.

     Minimum finance charge means even if you charge only a small amount, like .00, where you interest would be very small, they will charge you at least [FAQ-ANSWER].50 in interest.

     Cash advance means you actually take out cash with the card, like an ATM, and is usually a lot higher APR, like 25% (this will be a pain to pay off, do not use this).

4. QUESTION:
   Pay off Zero Percent Cerdit Card??
   I have 0% APR credit card for 12 months. Is making the minimum payment for the first 11 months and then paying the rest of the balance off before my 0% is up gong to hurt my FICO score.

   I have the money to pay off the amount but thinking that 0% interest while i'm getting 5% on my bank acct I will earn a little bit of money. Unless this will affect my FICO score alot then i'll rethink it.

   • ANSWER:
     If you have borrowed a high percentage of your available credit on this card, you will probably have a decrease to your FICO score - anything over about 50% will probably result in a noticeable decrease in your score.

     Depending on how many other cards you have and what their credit lines/balances are, you may also have a decrease due to your overall debt/available credit ratio. Anything over about 35% will probably result in a noticeable decrease in your score.

     Combined, both these factors may drop your FICO score by 10 - 50 points, depending on other factors.

5. QUESTION:
   my credit card company raised my APR for the heck of it?
   It is in the news all the time that the FED is cutting intrest rates, but i got a letter from Bank of America last week stating that my rate is now 17.5. percent. It was 7.9 percent. I have 10k balance on there and this increase really affects my bottom line, i pay double the min payment to get this paid off. I called them and the bit;ch told me its per you contract sorry we cannot do anything. I applied for another card 0 percent but denied on the fact of my income. my credit is good. WTF

   • ANSWER:
     Sorry...they can increase your rate at any time and for any reason...They could state "because the sky is blue" and get away with it.....

     The credit card industry has the US Presidency and Congress bought and paid for...They write their own rules which allow them to get away with this....A brain dead, docile voting public too distracted by Britney and Paris is ultimately to blame.

6. QUESTION:
   Interest rates on credit cards?
   Hello. I am new to this whole credit card industry and need some help. I am trying to figure out if I should pay off my victoria secret card or wait a few cycles because I want to save some of my money. Right now, my balance is about 6. IT says there is 0 percent Intro through Oct 11. And then it says Penalty APR is 29 percent. Any idea how much I would pay for my first minimum balance?
   Annual percentage rate is 0 percent til Oct 2011*

   • ANSWER:

7. QUESTION:
   Which Capitol One Credit Card Would Be Better A No Hassle Cash Back Or A Classic Platinum?
   I am about to get my first credit card and i am trying to decide which one to get a no hassle cash back which gives me 2 percent money back on gas and food purchases and 1 percent on everything else or a classic platinum which gives me 0 percent apr till march 2010 but i don't get 1 or 2 percent cash back

   • ANSWER:

8. QUESTION:
   when does my balance transfer on my credit card happen??
   i have had my chase credit card for a year now, and i have gotten many credit card deals in the mail and applied for one WaMu credit card because they offered me 0% percent APR for one year on all balance transfers and i applied online 3-4 days ago and was wondering when will it take effect??

   • ANSWER:
     It might take upto 7 business days.
     Be sure to make a payment to the old account so that this does not 'mess you up'
     in case it takes longer than that.

9. QUESTION:
   Credit Card Balence Transfer?
   I have a credit card with a balance that includes a balance transfer from a previous account that has 0.0% APR for a while and the rest of the balance on the card is from purchases that has a high percent APR. All my payments that I make go toward the balance transfer which has 0% APR and the interest from my purchases keeps building up and doesn't go down. How can I transfer JUST the purchase balence that I have on that credit card. This is kind of a confusing situation, let me know if you have any clarity questions.

   • ANSWER:
     Sorry, but you cannot do that. When the credit card company receives money for your account, they will apply it to the part with 0% interest until that is paid off. Then they will start to apply it to the part with a higher interest rate. If you look at the terms of credit that you got when you first got the card, it is in the legal terms there. When you transfer balances, the same thing still applies.

     So your options are:
     1) Stop using the card with the 0% interest on part of the balance so that you stop making the high interest rate balance grow bigger. Use the other card for your new purchases.

     2) Transfer the ENTIRE balance to the other card (assuming the credit line is high enough). Then DON'T USE IT. Let that balance sit there with the low interest rate while you use and pay off the other card each month.

     Keep in mind that you probably pay a fee (3% is common) for transfering the balance. That fee will NOT be at the 0% interest rate.

     Also, try to pay down your balances as fast as possible. Don't simply make the minimum payments. Also, don't pay late, or you will lose your introductory rate and will instead have a HIGH default interest rate.

     I hope this helps!

10. QUESTION:
    Interest rates on my new credit card?
    Hello. I am new to this whole credit card industry and need some help. I am trying to figure out if I should pay off my victoria secret card or wait a few cycles because I want to save some of my money. Right now, my balance is about 6. IT says there is 0 percent Intro through Oct 11. And then it says Penalty APR is 29 percent. Any idea how much I would pay for my first minimum balance?
    Sorry i meant til Oct 2011

    • ANSWER:

11. QUESTION:
    The small print on Chase freedom CREDIT CARD?
    So i want to apply for the CFCC. My main reason it offers a 12 month 0% apr. I currently have a chase master card and i had a full 12 months of 0 apr and it was smooth and great. So before apply for this new CFCC i read the fine print and next to the intro apr it stated...(THE INTRO 0 PERCENT APR WILL BE 12 BILLING CYCLES OR 6 MONTHS BILLING CYCLES DEPENDING ON CREDIT HISTORY) ahaaa....well my question is what are the determine factors of this card being either 12 or 6 months of 0 percent apr?
    what specific type of things will be the determing factor

    • ANSWER:
      Based on what you have written the answer to your ? is this:
      The determining factor in in whether you the 0% rate will be 6 months or 12 months is your credit history.

12. QUESTION:
    the small print on Chase freedom CREDIT CARD?
    So i want to apply for the CFCC. My main reason it offers a 12 month 0% apr. I currently have a chase master card and i had a full 12 months of 0 apr and it was smooth and great. So before apply for this new CFCC i read the fine print and next to the intro apr it stated...(THE INTRO 0 PERCENT APR WILL BE 12 BILLING CYCLES OR 6 MONTHS BILLING CYCLES DEPENDING ON CREDIT HISTORY) ahaaa....well my question is what are the determine factors of this card being either 12 or 6 months of 0 percent apr?

    • ANSWER:
      That's based on your credit as it saids. You might need to read on or call and ask what are their credit qualifications for the 12 months. When you find out then I suggest looking at your credit first before applying and make sure you meet their qualifications.

13. QUESTION:
    Need help with first Credit Card?
    So, I'm looking to get my first credit card soon to begin building my credit. Being that I turned 18 half a year ago with only a single bill under my name, I still have 0 or next to nothing credit. Therefore, when I go to look for one, I'm on the lower or "limited section".

    My banker at one bank told me to use CapitalOne first since that's what they used and it should work out fine. I believe I fall into the category of "Limited History" or "Limited Credit". There's several different cards that look like they all do the same like "Platinum" and "Young Adults". However, when I go to see if I pre-qualify and say that I just want low interest rates and have limited credit, they pair me with the "Classic Premium". Is this the right choice for me and am I on the right track?

    Some other concerns were that my banker told me to always pay the minimum balance on time, but leave an "outstanding balance". Any help on just what outstanding is if anything other then having something left to pay? We agreed on me paying the minimum balance then half of whatever was left. She said by doing this, I'd build credit much faster and be good after 6-8 months at which point I'd drop CO, get a credit card from my current bank and another one elsewhere.

    Some other small questions are about the APR percent (what it means; how it works) and when I get the annual fee. There's also a problem I saw during the actual application of the credit card. It requires that I put a monthly rent payment and yearly income but I've only had my job for 7 months and don't make rent payments yet, so what would I put there?

    I'm just here for another opinion and confirmations. I'll most likely speak to my banker on the phone during the process as well since she only set the foundation. Thanks for any help and I apologize for my poor knowledge thus far.

    • ANSWER:
      Wow. You certainly want to know about credit. Good for you.

      Yes, search for a card that is meant for first-timers who have limited history or credit. You can go to http://www.creditcards.com and look under the Search By Credit Quality section on the left panel for Limited or No Credit History. Apply for a card that doesn't have an annual fee. You will have to pay a higher APR for a while to prove your responsibility.

      Or you can apply for a secured credit card. You pay a certain amount to open an account and you borrow against yourself, but you still have the same rules as a regular credit card.

      I do leave a small revolving balance on my cards to show the issuers that I need the credit they gave me so that they don't drop my limits. However, with the high interest rate you'll likely pay, this may not be best. A revolving or outstanding balance is when you leave some balance on a card on from month to month after you've made a payment, at least the minimum.

      Don't get too credit happy. You only need about two or three credit cards. And you should wait at least one year before applying for your second card. Building a credit history is a slow process.

      Please don't pay attention to those who say you don't need credit at all. You'll need to prove to a lender that you can pay borrowed money back in case you want to get a mortgage, a car loan, or even student loans.

      APR is annual percentage rate. It is the amount of interest charged on a balance per year and then divided equally monthly.

      If you don't pay any rent at all, then write zero. The fact that you've only had a job for 7 months sort of skids everything though. The longer your employment history is, the likely you'll be approved, so if you want a card now, a secured one is best. For yearly income, write down what you expect to make when you have completed one full year of employment.

      You shouldn't apologize for wanting to become knowledgeable and you seem to be far ahead of most of your peers.

      Good luck.

14. QUESTION:
    Should I invest more into my 401k, or pay off my credit card debt first? ?
    I have an average of about a 7.9 APR right now, and occasionally will get 0 percent balance transfer offers. My company allows me to contribute 25 percent of my check.

    • ANSWER:
      What I tell people to do is this:

      1. Contribute the max amount to the 401(k) up to the employer matching contribution.

      If for example that you put in 00 a year and the employer matches up to 00 a year, then you just made 100% return on your money with no risk.

      This out ways any interest cost a credit card has (I hope!).

      2. After maxing out the match, then pay off the balance of the credit cards. Keep refi-ing with those 0% and low interest promos.

      Watch the expiration dates, cause they usually soar to 17-20% after that.

      make sure you have an auto pay feature st up when at least the min is withdrawn from your checking account. if you miss a single payment, they can void the prop and default you to a rate of 20-30% depending on your terms.

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