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A credit cards APR is the Annual Percentage Rate which applies to that card. Many cards now begin by offering 0 percent interest on either balance transfers, purchases or both. This initial zero interest period can be used to either avoid paying any interest on existing loans, or it can be used to make a profit.

Zero interest credit on balance transfers can be used to avoid paying any of the interest on existing loans such as outstanding balances on other credit cards by transferring the balances to the new card. This means that repayments can be applied to reducing the balance rather than paying any interest.

Another way one can use such accounts is to obtain “free money”. This is done by using the funds made available on the new account and placing them into a savings bank or other interest-generating system. Occasionally such an approach might even be used for more risky investments such as business startups. It is rumored that the Google company used such funds to buy some of their early hardware setups, and it is known that the movie “Clerks” was funded in this way.

For cash advances credit card companies sometimes charge interest on the entire outstanding balance from the date they are obtained if the total balance is not paid in full. A further complication is that cash advances are often charged from the day they are obtained rather than the billing date, and often at a different rate of interest from purchases. Also repayments are often applied to all other transactions before they are applied to cash advances.

A credit cards APR is one of the big areas one should consider when choosing between competing offers, but other factors should also be taken into consideration. Fees are one such factor, as are rewards such as air miles or cash-back which can be very beneficial.

Looking to find the best info on Credit Cards, then visit www.money-articles.net to find the best advice on credit cards and also other money and finance topics on this leading specialist article directory.

A credit cards APR means the Annual Percentage Rate of interest charged. IT is common now for cards to offer a zero-percent initial APR which can be on purchases, balance-transfers or sometimes both. This initial 0% period can either be used to avoid paying any interest on existing borrowing or can be used to make a profit.

Cash advances often have different rules from other types of use. Sometimes a higher interest rate is charged, and this rate can be charged from the day the advance is obtained rather than from the billing date as is usual with purchases. It is also sometimes the case that repayments get applied to all other categories of expenditure on the card before they are applied at all to any cash advances.

0% interest for an initial period can be used to avoid having to pay an interest at all on existing borrowing if the 0% applies to balance transfers. This is done by transferring the existing borrowing onto the new card. This is a big advantage as repayments can be applied to decreasing the borrowing itself rather than doing little more than paying off the interest each month.

It is actually possible to make a genuine profit for free, from cards which have a 0% initial period on balance transfers. Simply put the available funds into an interest-bearing account such as a high-interest savings bank account, and collect the profit. This approach is occasionally applied to other forms of investment other than savings accounts, but these other investments usually carry higher risk. Successful examples of this include movies such as “Clerks”, as well as the initial batch of hardware used by the Google search engine business according to rumor.

A credit cards APR is one of the big areas one should consider when choosing between competing offers, but other factors should also be taken into consideration. Fees are one such factor, as are rewards such as air miles or cash-back which can be very beneficial.

Looking to find the best info on Credit Cards, then visit www.money-articles.net to find the best advice on credit cards and money and finance topics on this leading specialist article directory.