It is not a secret that most people apply for a credit card to boost their shopping power and to get some credit improvement at the same time. So why not to apply for a credit card with 0% APR on purchases even though you have limited credit history?
Today people with less than perfect credit can find the credit cards with 0% interest introductory period on purchases. That means you won't be charged any interest during the introductory period.
Such cards are good when you are planning to make a big purchase. You can pay the balance off during the promotional period without paying the interest. Whether your credit is fair or you have limited credit, a 0% APR credit card can be a good starting point.
Today we see a lot of offers with introductory promotional periods on balance transfers and on purchases. So what is it, a zero intro APR on purchases?
The credit card issuers offer you a certain period of time during which you won't be charged any interest on all your purchases you make with the credit card. This period usually lasts from 6 to 12 months, but some issuers may offer up to 18 months.
You should manage to pay the balance off by the end of the introductory period. If you fail to do it, the issuer will start charging the interest and it will apply to full price of the purchase retroactively.
Also, do not forget to make the due minimum payments every month otherwise your introductory rate will be cancelled and a penalty interest rate will apply. The issuer can charge a penalty fee as well in addition to the increased APR.
So make some calculations before you make the purchase to be sure you will pay it off during the offered 0% interest introductory period.