As you go about considering what student credit card to obtain, you may have run across advertisements for a low APR student credit card that is offering a 0% APR. In this regard, you may be wondering what 0% APR is all about and whether a student credit card with a 0% APR is right for you. Through this article, you will be presented with some basic information to help you understand what a 0% APR is all about. In addition, you will be presented with the pros and cons of a student credit card that is offering 0% APR to determine if such a card is right for you.
You may have heard the term 0% APR but not fully understand what 0% APR is all about. In simple and direct terms, 0% APR stands for 0% annual percentage rate. This refers to the interest rate that is (or, in theory is not) being charges on a particularly credit card for a particular period of time. In other words, a credit card company many offer a 0% APR to a customer for a set period of time. During that period of time, the customer can use the credit card and carry over balances from month to month without incurring an interest charge.
Of course, on the surface, anyone would like the prospect of saving money on the use of a credit card by not having to pay interest over the course of at least some period of time. However, when all is said and done, there tends to be a number of “strings” attached to a typical offer of 0% APR. It is important for you to understand the requirements associated with such a deal before you in fact end up signing up for such a student credit card.
As mentioned a moment ago, in most instances a credit card company will offer a 0% APR for a set period of time. What sometimes is the case is that the interest rate that ends up being in place after the initial period of 0% APR is higher than what you will find on comparable student credit cards available on the market today. In other words, while you may end up saving a bit of money on a 0% in the beginning, during the initial months you have a certain credit card, you will end up paying more on interest over time due to the higher APR charged by the credit card company after the initial period comes to an end.
There may also be some other hoops that you do have to jump through in order to realize the benefits of an annual interest percentage rate that is set at zero. In other words, you need to digest all of the finer points associated with a 0% APR offering before you make a decision about that particular credit card. You must consider whether or not you will realize a true savings to yourself by taking up a student credit card that is promoting a 0% APR.
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