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Credit Card Blog - Why Not Apply For Cards Just For the Limited 0% APR?

 Friday, 07 September 2007

Applying for Limited APR

0% APR, even though it can be limited, is a great thing. It can be very beneficial in the short time that you have it. So why wouldn’t you just apply for cards, and use them until the 0% APR expires, then just apply again for another card? Well it actually can be quite damaging.

Misuse of 0% APR

  • You may just get cut off from getting cards.

The company will notice that you either keep applying for cards and only use them for that period, or they may notice that you are misusing these cards. They can then reserve the right to deny you any future use of the cards.

  • You run the risk of missing a payment

All these free wheeling on these cards may cause you to be late on a payment. Since the companies are allowing you the opportunity to get 0% APR, they will be stricter on the payments. If you miss one, they you are in trouble. Then your APR will be very high.

  • Opening and closing credit cards affects your credit history

This is a big one. If you keep up the process of opening and closing cards, then you may just run yourself right out of the cards that have 0% APR. So in your haste to catch the 0% APR, you may be limiting the overall time you can qualify for those cards.

  • You will not be looked upon favorably if you cut corners

Companies thrive off your interest you pay. So if they notice you are just transferring your debt among cards with 0% interest, they will not be happy. Especially if this is something you are constantly doing. It may seem like a great thing to do, but know that you may be running the risk of getting reprimanded.

Be Smart About Your Use of 0% APR

Like I said earlier, 0% APR is a great thing to have. But, just like anything else, if you take it for granted then you can find yourself in some trouble. Do not take try screw the system, because you will be the one with the problems. These companies will work with you more if you work with them. So in the long term, even though the continuing 0% APR seems great, you may be better off with using that service and getting on with life after it runs out.

Additional Resources:

Friday, 07 September 2007 17:04:49 (GMT Daylight Time, UTC+01:00)  #     
Credit | Low Interest  | 
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