How to Keep a 0% APR on Your Credit Card

Credit card companies introduced credit cards with zero interest rate in the market to attract more customers. This can be considered as a very effective marketing method as who wouldn’t like to enjoy a lower interest? Many people have signed up for a credit card to avail the zero- interest- offer even for only a limited time.

Can you really benefit from a credit card with a 0% APR even if the zero interest doesn’t last long? Below are practical strategies that you can do to make sure that you’ll enjoy the low interest from your credit card for a longer time:

Find the right zero interest credit card. Obviously, not all credit cards that offer 0% APR or low APR are worth signing up for. Consumers need to be very careful about making a choice. See to it that you can enjoy the 0 APR for at least 6 months or longer. More importantly, make sure that the regular interest rate would remain reasonable when the introductory period expires.

Get a 0 APR balance transfer card. Do you have unpaid balances from different credit card accounts? If so, why not apply for a balance transfer card with a low rate or zero interest introductory offer. Take advantage of the introductory period to pay off all your balances without the additional interest costs.

Keep your credit rating in excellent standing. A secret to enjoy the best deals from credit card companies and lenders is to maintain a good or excellent credit history. When the introductory period ends, call up your credit card issuer and ask for a lower rate. If you have an outstanding credit score, many credit card issuers would willingly adjust their rates to keep good paying customers.

Take care of your credit card account. To continue enjoying the best interest rates, see to it that stay true to your payment obligations. Don’t exceed your credit limit. Pay your bills on time. Monitor your credit card account regularly to make sure that there are no unauthorized charges. Use your credit card only for important purchases that you know you can pay back on time.

Keep your credit-to-debt ratio low. Just because your credit card has a low interest rate doesn’t mean you should use it to the full. Maximizing on your credit line can badly affect your credit score. Ideally, you’ll want to keep at least 40% of your credit limit free from charges.

Request for a low rate. No credit card company would volunteer to lower your current rate unless you ask for it. If you have been a good credit card holder for years and you maintain a solid credit history, there’s no reason why you shouldn’t make a request. Even if your credit card issuer refuses to give in, it is still worth a try. Nevertheless, if you feel that your credit card isn’t giving you a fair interest rate, it’s about time to look for a credit card with more reasonable fees and conditions.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

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