The Truth About 0 APR Credit Cards

These types of 0 APR credit cards are offered by popular credit card lenders including American Express, Citibank, Chase, HSBC, and Discover. These cards have many benefits to offer if you have a good to excellent credit rating.

Keep in mind, that the zero percent offered with these cards is not permanent. It is an introductory rate and is typically offered for ninety days to as long as 12 months. At the end of the interest-free or zero percent periods, cardholders will have to pay a higher ongoing interest rate. Generally, these rates could vary between 10 % – 14% and sometimes can be as high as 24%.

A 0 APR credit card is ideal when you want to purchase something expensive but cannot find another way to finance it. There will be no interest charges for the in and you will have the introductory buffer period to pay off the expense. But buyer beware … make sure you can pay the purchase off before the introductory APR expires.

Most 0 Interest credit cards allow balance transfers from your existing higher interest cards and many will waive the transfer fees. This is one of the best methods to pay off debts at a faster rate, leading to substantial savings on the interest charges incurred.

It is possible that a single credit card can have multiple APRs including the following:
1) One APR for balance transfers, one for purchases, and one for cash advances the APR normally would be higher for cash advances compared to balance transfers and purchases.
2) Tiered APRs Different APR levels can be assigned for different account balance levels or tiers, e.g., 15% for balances between $1 – $500 and 17% for balances higher than $500, etc..
3) Introductory APR 0 APR as the introductory offer and a higher rate upon expiration of the introductory period.
4) Penalty APR A penalty APR rate may apply if you are late with your payments.

The Traps to Watch Out For:
A 0 APR credit card is an attractive proposition, and often is too tempting an offer to resist. However, it is essential to be informed about the often-untold catches in these lucrative offers.

1. The 0 APR is a Limited Time Offer In general, the 0 APR offered is only for a limited period. The period could vary from 3 months to 12 months. This implies that purchases made during this period will not attract any interest. You need to be cautious about the expiry period and remember to pay off before the period ends inorder to avoid hefty interest charges.

2. Once the introductory period is over, the 0 APR credit card may have a ridiculously high interest rate like 20% or higher.

3. On-Time Payment Most of these 0 Interest credit cards require you to pay the minimum payment on time every month during the introductory period. Late payments will result in penalties that include shifting the remaining balance to a much higher APR.

4. Complete Payment Certain 0 APR cards require you to pay off the balance entirely before the expiration period of the introductory offer. If not, the default high interest rate could be applied to the entire balance. Ensure that you understand these credit card terms clearly.

5. Applicability of the 0 APR Most of the 0 Interest cards offer the 0 APR on new purchases and balance transfers in the introductory period. However, there are some cards that offer 0 APR on balance transfers only with higher applicable APR’s on new purchases.

6. Other Fees Some credit card companies compensate the 0 APR by charging high annual fees or transfer fees on balance transfers.

7. Cap on Balance Transfer Certain cards may have a cap or limit on the balance transfer amount. This means that the 0 APR will apply only for the amount within the cap limit and anything more will be charged the default higher APR.

While it may be an attractive offer to go for 0 APR credit cards, it may not be a wise decision in certain scenarios. So, before you seriously consider a 0 APR credit card, it is essential to compute credit balances, interest rates, and your pay off capability. Read the terms and conditions carefully to avoid credit traps. Understanding the fine print could have substantial savings apart from trouble free credit rating.

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Airline-Sponsored/Specific Airline Credit Cards

Airline-sponsored airline credit cards can be a good option if you fly with one airline constantly, or if you hold a strong brand loyalty to a particular airline.

Airline-sponsored airline credit cards are usually co-branded credit cards issued in collaboration by the airline with a bank/credit card issuer. And if that airline has a hub in your city or region, it becomes more convenient and economical since it may serve major flights to potential destinations. Every major airline company have airline-sponsored airline credit card offers, with which you can earn frequent flyer miles, and flight-related perks such as free airline tickets and first class upgrades.

However, since interest rates are liable to be comparatively high with this type of airline credit card mile offers, they are not recommended for those who carry a balance. And remember, most co-branded airline-sponsored airline credit cards carry an annual fee.

Examples of airline-sponsored airline credit card offers include United Airlines Mileage Signature Visa Card, Delta American Express SkyMiles, British Airways Visa Card, and Citi Platinum Select American Airlines AAdvantage World MasterCard.

Bank-Sponsored and Generic Airline Credit Cards

Bank-sponsored airline credit cards are more practical for those who do not have a major airline in their region, and consistently change carriers, since they allow you to earn miles that can be used on several airlines and not just one.

Bank-sponsored airline credit cards may also offer lower minimum mileage required for travel, in comparison to airline-sponsored airline credit cards. Generic airline credit card offers generally do not carry an annual fee, and are ideal for people who looking for lowest priced discount ticket before flying, and do not have preference for any particular airline.

With generic airline credit cards, the miles you earn for card purchases can not be combined with miles in a specific airline’s frequent flyer program, so they are different from frequent flyer miles.

However, generic airline credit cards allow you to redeem these miles for perks such as free tickets on any important airline. So, generic airline credit card miles are, in fact, similar to dedicated cash-back earnings, which can only be employed to buy an airline ticket.

Examples of generic airline credit card offers include Chase Travel Plus Platinum Visa Card, Citi PremierPass Card, Discover Miles Card, and Blue Sky from American Express.

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Some of the best reward credit cards are offered by companies like Visa, American Express, Citibank, and Discover. All the cards come with their own benefits and conditions of carrying on transactions with the card and so the customer should check out the features of each card before selecting the best reward credit card. One can check out the offers provided by the different credit card companies, compare the costs and the features of each card and then can apply by filling out the online form or by calling the company representative.

Let us discuss further the features of credit cards from different companies.

Citibank Reward Credit Card – The reward credit card offered by Citibank is known by the name of Citi Diamond. This card carries a 0% APR for any transactions or transfers for the first 12 months. The credit card also carries reward points for purchases made through the card, which one can redeem for purchases made from grocery stores, drug stores, and departmental stores. The card carries 5 points for every $1 worth of purchase. The customer also gets a $50 gift card and they can redeem 5,000 bonus points after the first purchase that they make with the card. The card has a regular APR of 12.5% and also there is no annual fee.

American Express Reward Card – The reward card offered by American Express is known by the name of Blue. The reward credit card carries a 0% APR for the first 15 months and then the regular APR of 11.5%. There is a free credit card reward program and there is no annual free. One can apply online and can get an instant approval online.

Visa and Discover Reward Credit Cards – Visa offers the Chase reward credit card. The card carries a 0% APR for the fist 12 months and then the APR carries the rate of 13.5%. Also there is no annual free and one can redeem the points earned for merchandise and travel. One can earn a bonus of 1,000 points on the first purchase made on the card.

Discover has come out with the Discover platinum Gas Card. The card carries 0% APR for the first 12 months and there is no annual free. After 12 months, the APR rate is 11%. The benefit of using this card for gas refilling is that one can get a full 5% cash back guarantee on the bill amount and 1% cash back guarantee on other purchases. Also the cash back bonus gets doubled from $20 to $40 when one redeems the points accumulated for products at one of the 40 brand partners who have tied up with the company.

Hence we see how the different types reward credit cards offer great benefits to the customer. There are also other reward credit cards available from other banks like HSBC. Hence, it is best to compare the benefits and the prices of the reward credit cards offered by several companies before choosing the best reward credit card scheme. The ultimate purpose should be to transfer as many monthly house holding expenses to the credit card account to avail the best benefits offered by the rewards cards.

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1. Do you anticipate any large purchases in the next year (i.e. furniture, appliances, etc.)?
2. How long will do you anticipate keeping the principal of a purchase on your card?
3. Do you want to pay your entire balance every month?
4. Are you planning to use this card for purchases over a short time period or do you intend to hold it for a long time?
5. Do you currently have credit limits totaling more than 40% of your annual income or balances outstanding on those cards greater than 50% of the credit limit?

If you answered yes to the first question, you will need a card with a high credit limit and a low interest rate. This may seem obvious but not all people need these things. You may do best getting a card with rewards attached to something you are interested in, like an airline miles card.

If you answered greater than three months on the second question, you will need a low interest rate. Do not be discouraged by a low credit limit. The interest is where you will save money.

If you answered yes to the third question, you may be interested in finding a 0% interest charge card, such as American Express. These cards will not charge you interest as long as you pay your bill promptly and in its entirety every month.

If you answered that you want to hold on to your credit card in the fourth question, you should look for a moderate credit limit and a low interest rate. If you answered that you plan to use this credit card only in the short term, then you should look for a card with an introductory 0% interest rate. These are best coupled with a plan to pay off the balance by the end of the introductory term.

If you answered yes to either part of the fifth question, you may have some difficulty securing new credit cards. Part of your credit score is determined by the amount of credit you carry and the ratio of the balance outstanding to the credit limit. Some banks are unwilling to grant additional credit to those applicants whose credit scores are low due to outstanding credit, even if you have paid on time. The best credit card for you may be a card specializing in bad credit, regardless of how close you are to the acceptable credit rating.

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It is all About the Perks

For those that regularly use credit cards, the cash back credit cards is an important consideration. With all the major players as contestants in a game of Credit Card Choice, it is important to get to know more about each provider.

For Instance
-Did you know that the Visa Miles Platinum Visa cardholders receive a unique travel assistance service as well as access to emergency cash?
-Did you know that the JetBlue American Express card provides a double point system that rewards frequent flyers for purchases made in association with a variety of entertainment choices such as movies, golf courses, restaurants, and concerts?
-Did you know that the Chase Cash Plus Rewards Visa Card offers 5% Cash back if the card is, used at drugstores, grocery stores, or gas stations? Moreover, did you know that you would receive another 1% per each purchase made thereafter?

Web Tools

You are probably aware that most credit card companies will send product information by mail and much of that information makes its way to a landfill. The good news is there are tremendous opportunities to evaluate a variety of cash back credit card offers that are different enough to help discerning consumers make an informed choice in the selection of a card that fits their lifestyle and their individual goals and objectives.
Since the average American owns one or more credit cards, choice has become an important tool to determine who will be the recipient of your charge account business – and the competition is ready to meet the demand.

There are choices that remain specific to favorite stores, which may provide greater overall benefits for using that specific card, while there are others that allow a wider choice of selections, but feature a slightly reduced benefit or higher fees to cover administrative costs.

These specific features unearthed by collectively using your web browser to view the similarities and differences of cash back credit cards for yourself.

Other Considerations

It is also important to determine how long a credit card company will allow cash back rewards to accumulate. There is often a cut off or expiration date on the use of points. While most credit card companies are rendering black out dates an antiquated idea, it is important to learn what, if any, blackout dates may be in place before choosing a card. A further consideration is to investigate whether the cash back card will allow you to use your rewards for travel related expenses such as car rental and motel accommodations. While some allow this, others do not.

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A business credit card is used by business owners, entrepreneurs and big shot executives in the corporate field.

The following are some of the business credit card offers available in the market.

The platinum advanta with rewards

This business credit card offers zero percent APR on any balance transfers made for sixteen months. the APR thereafter is fixed at 7.99%.

Cash back is also available for this business credit card as well as rewards for travel. An additional plus is that the platinum Advanta requires that you do not pay an annual fee.

To be eligible to apply, a good credit standing is needed. Balance transfers also apply.

The Citibank business credit card

This card also has a zero percent APR on all purchases as well as balance transfers for a maximum of twelve months.

For the Citibank business credit card, annual fees are not required. Plus, the credit line is business-sized. Citibank also has additional free cards for a particular companys employees, with the credit limit set conveniently by you.

The Citibank business card also provides everyday savings on all your business-related purchases. Summaries of all charges are also provided annually as well as quarterly.

To be eligible to apply, a good credit standing is needed. Balance transfers also apply. Regular APR is set at 11.24%.

American express business credit card gold rewards

This particular credit card entitles the bearer with an automatic enrollment in the Amex membership program rewards.

Users of this Amex gold business credit card entitles its bearer with earning 100,000 rewards points during the first year.

Skys the limit applies very much to this Amex gold business credit card as there is no spending limit that is pre-set.

There is no such thing as finance charges for this business credit card. A plus is the continuous savings users are eligible at the following business: FedEx, AT&T, Hertz, Staples, among others.

First year users of the Amex gold business credit card have their annual fee free, after which a regular $125 applies every year.

To be eligible to apply, a good credit standing is needed.

Discover business credit card

For this business credit card, the introductory APR is at zero percent especially for purchases made for twelve months.

A five percent bonus cashback is provided for office supplies, while a bonus cashback of two percent is provided for gas. Another bonus is a one percent bonus cashback for any other purchases.

There is no such thing as an annual fee for this particular business credit card.

To be eligible to apply, a good credit standing is needed. An APR of 12.99% applies. Balance transfers are also provided.

Advanta balanced life platinum card

This business credit card allows its users a fixed 2.99% APR for ones whole life as well as on other balances that have been transferred in three months. There is also no annual fee and there is unlimited earning potential.

All in all, it depends on your specific wants, needs and lifestyle as to the specific card that appeals much to your preference. Choose at your own risk and benefit.

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There are basically several reasons as to why most business owners prefer getting business credit cards for their official use. The business credit card offers are simply amazing that one will usually grab any chance available for him. Business credit card offers are nonetheless typically enjoyed by entrepreneurs, owners of big and small businesses, as well as the executives in the corporate industry.

Many business credit cards are available today. There is the platinum advanta, Citibank business credit card, American Express business credit card gold, Amex Gold business credit card, Discover business credit card, and a lot others. There is certainly a perfect business credit card that will suit your needs and you just have to see through all of them.

If you happen to own a small business of some sort then you must be thinking of getting a business credit card. The consideration can eventually pay off. Business credit card offers can be advantageous to businessmen like you. Read on and get to know them.

The Advantages of the Business Credit Card Offers

Part of the business credit card offer is the provision of the low interest rates but higher cost of credit limit. Such scheme is relevantly perfect for small businesses. Credit card firms are mostly overwhelmed to offer their clients with these strategies since they know that small business owners are into the use of their credit cards in every transaction they incur in comparison to the rest of the regular credit card holders.

Another benefit to be reaped from the business credit card offers is the easy tracking of the expenditures in the business when it comes to the point of computing for the tax. Every credit card company secures an annual report of your overall expenses and most of the times such service is free of charge.

Finally, business credit card offers give special privileges to the business owners. These firms like to maintain good rapport with their clients as much as possible. By creating a good impression, these business owners are likely to recommend the services offered by their mother credit card company to their other acquaintances.

Where to Get those Business Credit Card Offers

You may be asking for the greatest source of those business credit card offers. For you to get a good glimpse of what’s in store for you, you have to start your search online. There are innumerable websites that host details on the business credit card offers which can do your business good. It may just become a bit confusing since the plentiful sources may ultimately shred your thoughts of which to avail of.

A beneficial advice is for you to look for websites that provide reviews of the available business credit card offers. This will make your choosing a lot easy and convenient. Another point to bear in mind is that business credit cards are much easy to apply for in the online method. In just a few minutes you can witness your business credit card offers laid out before you. It means that little time will thus be consumed for waiting.

Being an owner of a small business, business credit card offers will prove beneficial for your success. Not only would you incur no problems at all with the computation of your business taxes but you will also enjoy lower interest charges and have your expenses easily tracked.

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Gather Your Statements

Collect your statements for all high and low interest credit cards. Include Visa, MasterCard, American Express, Discover, department stores, retailers, grocers and any other revolving accounts. For each bill, make a record of the total balance, minimum payment amount and interest rate. You might also want to include your estimated monthly payment (if it’s more or less than the minimum) and the monthly finance charge.

Compare Cards

If you compare the numbers for each card, you will be able to see which ones are costing you the most money. The higher the APR and the higher the balance, the more you will end up paying in interest in the long run. And, if you only pay small amounts of what you owe, you can go on paying for over 20 years. Now you can see the benefit of having a low interest credit card.

Categorize Your Debt

Once you’ve figured out which are the low interest credit cards and which are high, you need to categorize them from highest to lowest. Then reorder them, if necessary, based on the estimated amount of interest you would pay for the entire year. In other words, if you have a high rate card with a low balance, the overall interest may be less than a low interest credit card with a very high balance. This step will help you to focus on the cards that are taking the most of your hard earned money.

Negotiate With Your Bank

Before you cut up your plastic or send it through the paper cutter, call you current credit card company. Many consumers don’t realize it, but companies would rather lower your interest rate than lose your business. Tell them that you’ve been offered a better deal on a low interest credit card. They may just match that offer, saving you the time and effort used to close and open a new card.

Shop Around For 0% APR Credit Cards

Some banks just won’t budge. You may have to do some digging to get a low interest credit card. Check online, talk to your local bank and sort through those direct mail offers. Ask your friends, family, co-workers and other acquaintances to learn about the cards they use.

Carefully Read the Fine Print

Many cards look too-good-to-be-true – 0% interest on transfers, lifetime low rate, frequent flyer miles, insurance benefits, etc. Often times, the offers are just that. 0% offers may only be applied to a limited amount or during a specific time frame. Fixed rates may increase if you so much as miss a single payment and so on. Pay close attention to all terms and policies, making sure to read the fine print. Don’t accept a low interest credit card until you are sure you understand all that is involved.

Maintain Good Credit

Now you can stop throwing money down the drain. Treasure your low interest or 0% APR credit card and maintain your good credit rating. Pay more than the minimum amounts and don’t get behind. Just as fast as you were able to lower your APR, it could jump up to astounding numbers.

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With so many scams out there and businesses trying to pull the wool over consumer’s eyes, it seems impossible to believe that a credit card would really offer to pay 5% cash back just for making purchases with the card. Nonetheless, it is true. Several of the best cash back credit cards are really giving their customers 5% cash back rewards – and you just might be able to take advantage of these special deals.

Beating the Competition

With so many credit cards out there, credit card companies are in a bind to find a way to draw more customers in. One of the answers they have come up with is to offer cash back credit cards. With these credit cards, you earn money back for every purchase you make. As cash back credit cards rise in popularity, credit card companies are once again at the drawing table looking for a way to bring customers their way. All of this fierce battling is perfect for the consumer, who can take advantage of the resulting deals.

One of these great deals is the increase in credit card companies willing to provide cardholders with 5% cash back. In addition, this cash back reward is earned from making everyday purchases, such as those made at drugstores, gas stations, and grocery stores. These cards also offer 1% cash back on all other purchases.

Finding a 5% Cash Back Credit Card

The best cash back credit cards provide the 5% cash back reward. Some credit cards offering this special deal are Citi Dividend Platinum Select MasterCard and the Blue Cash Card from American Express. Whether you are an individual or a small business, you can find a great cash back credit card. The Advanta Platinum with Rewards and American Express OPEN: The Small Business Network are two great cash back credit cards for business owners.

The Downside

There is one downside to the 5% cash back bonus offered by certain cash back credit cards. Certain major stores, such as Sam’s Club and Wal-Mart, do not earn the 5% rebate. This is not because the credit card company has excluded them. Rather, it is because these stores have not coded their items as grocery, gas, or pharmacy. Therefore, the credit card company has no way to properly track the items. Therefore, you will need to go to major drug stores, grocery stores, and gas stations to take advantage of the special 5% incentive. Otherwise, you will only earn 1% cash back.

The Mindset of the Credit Card Company

Credit card companies are able to offer the great incentives of these cash back credit cards for many reasons. First of all, they are willing to pay out a little extra in order to grab a larger portion of the consumer market. Secondly, American spending habits have traditionally been to use a check or cash for everyday necessities, such as food, health, and home purchases. Therefore, they are counting on you setting the plastic aside when you visit drug stores, gas stations, and grocery stores.

The trend for credit card usage is, however, changing. More and more, consumers are using their credit cards for everyday purchases. Retailers are assisting in this trend by providing incentives for using credit cards, such as fast moving self-service aisles that accept only credit cards. So, if you are able to pay your credit card balance at the end of the month and if you make sure to use your cash back credit card for all of your purchases, particularly the everyday ones, you will be sure to start earning money back in no time!

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One of the most critical decisions for launching an online business is deciding on which credit card processor to use and how you will choose to process your customer’s payments. There are two primary methods to choose from: You can use a true merchant account and do it yourself or you can use what is known as a third-party processor. The credit card processor method you select can possibly effect the execution of your entire Website.

Probably the best way to choose a credit card processor is by simply listing your needs and then comparing the various available plans. Will cost be the most important element and what other factors will be involved? Try comparing both a true merchant account to third-party credit card processors side by side.

How is a true merchant account different from a third party credit card processor?

True Merchant Credit Card Processors

With a true merchant account, you are the merchant and you have the option of applying directly through a bank. However, this is often done through a sales agent. The account will be dedicated to your business only. You, as the merchant will have total control over the account and be totally responsible for it in everyway. You will have to provide a gateway for the account because this will not be included in the account.
Note: Some companies that offer credit card processor plans will extend a bundle that includes a gateway as an enticement. You are free to choose any gateway you prefer since they are totally separate entities.

Basically, your merchant account for a credit card processor is a direct account with MasterCard, Discover Card and American Express. If you resolve to accept payments from their members, you must abide strictly by their rules.

Third-Party Credit Card Processors

A third-party credit card processor company has it’s own merchant account and they allow individuals and businesses to accept credit card payments through them. A third-party credit card processing company has all of the power since they make the rules, which you must adhere to since they are allowing you to share their merchant account.

When should you consider using a third-party credit card processing company?
-If your business isn’t registered
-If you have been blacklisted
-If you or your mechanize is considered high risk
-If you have poor credit or no credit
-If you only process a small amount of transactions
If you are a non-programmer and can’t carry out a complex API.

Additional considerations concerning third-party credit card processing
1. They will not charge higher rates for high risk businesses
2. They don’t perform credit checks
3. They can’t be used with a separate gateway
4. Their name appears on your customer’s credit card statements
5. It can take up to a month to receive deposited funds.
6. You can’t negotiate rates for third-party credit card processing.

Most reputable online merchants understand they will be accepting credit cards online and that they will need a merchant account and a payment gateway. There are good reasons for assuming this:
-If there are large volumes of transactions to be processed, the discount rate will be far superior with a true merchant account than with a third-party credit processing company.
-The merchant will have 100% control over the account. The merchant can deal directly with customers and it’s the merchant’s name that appears on the customer’s credit card statement.
-Transparent checkout feature – Allows the customer transaction to be processed directly on the Merchant’s Website, rather than being redirected to a third party site.
-Portrays a more professional image – A true merchant account is a more seamless process which is expected from customers.

When you apply for a true merchant account, you will have to go through a full credit check and you may not use the account in anyway for your own personal use. The rates are always negotiable but high-risk products will garner much higher rates. You may use a separate gateway of your choice for credit card processing and your business name will always appear on the customer’s statement. Funds will be deposited within 1-3 days and you may be locked into a contract for several years.

Most online businesses that are just starting out have small margins and tight budgets. Cost will be the single most important factor in choosing a credit card processing company for most of them. The needs of each business will vary, as will the offers they receive for credit card processing. In making a comparison, it’s almost like comparing oranges and oranges and can be quite difficult. One way to approach the comparison process is to collect the data on fees associated with both third party and a true merchant account first.
-Setup fee: how much you need to pay to establish the account
-Discount rate: the percentage of sales that the processor takes
-Transaction fee: the flat fee the processor charges for each transaction
-Monthly fee: the monthly fee associated with keeping the account active
-Setup fee: the cost to set up a gateway
-Gateway monthly fee: the monthly fee charged by the gateway provider for use of their payment gateway services

Next, list the number of transactions you will make each month and how much the average customer will spend on your Website. There is a multitude of third-party processors and true merchant providers for credit card processing that may be compared. For example, Papal and Verisign are two well known companies, but are completely different.

Conclusion

You may ultimately use both of these methods to use credit card processing online but the way in which they are implemented are very different. Each has it’s own particular advantages. Since every business is different, you must consider all of the factors involved with accepting credit cards online, not just the costs. Sometimes, paying a few additional costs in fees can enhance your customers experience and the overall appearance of your Website. Take ample time to explore all of your options in order to find the best cost-effective credit card processing company that fills the needs of your online business.

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