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0 APR credit cards can be very valuable if used in certain ways which this article will describe. APR means "annual percentage rate", and many cards now offer no interest at all for an initial period, usually a year.

One important point about this zero interest period is whether it applies to purchases, balance transfers or both. If one needs to make a lot of purchases then the formed option can be valuable, however, the latter option of zero interest on balance transfers can be even more beneficial to ones finances if used wisely.

There are two main ways in which a zero interest balance transfer facility can be used. The first way enables interest payments on existing loans to be avoided, and the second method actually gives you free money!

The first approach is to transfer existing borrowing onto the new account, and so avoid having to pay any interest at all on it for the initial period. This can make a big difference to some people's debt situation, as some loans make the monthly repayment little or nothing above the interest charged so while paying what is required each month it can be easy to be not reducing the borrowing itself at all. So if the interest can be avoided for a certain time, real progress can be made with reducing the amount of the borrowing itself.

The second method is to use the available funds on the new account to invest in something which makes a profit. Probably the safest investment is a savings account although no form of investment is 100% safe, particularly in challenging economic times. Other forms of investment might be considered although they usually carry more risk, especially if one has little experience in using them.

While the zero interest is of course a huge benefit, other aspects of credit cards should always be considered when comparing offers. This is especially true as anyone who has the necessary credit rating can usually be accepted by a wide variety of different lenders. Factors such as rewards, fees and other details should also be taken into consideration.

0 APR credit cards can be very useful, as this article has shown, but only if used wisely and with care.

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0 APR Credit C ard s B rought to you by: 0 APR credit cards can be very valuable if us...

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