How to Get Free Credit Cards

Free credit cards - what a concept! We're all enticed by the very word free. The more than common term for free credit cards, however, is 0% (or zero percent) APR credit cards. APR stand ups for annual percentage rate. In other words, free credit cards can mention to those that charge you no interest on the purchases you do with them.

Years, and decennaries ago, the APR was standard no matter which card you chose, and which financial provider. The APR simply depended on the bank rates, which in bend were influenced by the federal reserve. 18 percent was then a fairly standard APR. This was clearly not a clip when free credit cards abounded and, in fact, competition wasn't very frenetic, because the rate was the same no matter which card you chose.

Then, however, monoline banks came into being. These banks, unlike the traditional financial establishment that accepted sedimentations and gave out loans, served simply as issuers of credit cards. These still didn't make free credit cards, but they did have got a decreasing consequence on credit card APR, because competition for credit card users started to go stiffer.

Nowadays, unlike the past decades, you're almost certain to happen introductory promotional offers on just about every credit card. While they won't always measure up as one of the free credit cards, most volition measure up as low interest first twelvemonth credit cards. The most popular, of course, are the free credit cards - the 1s that offer the nothing percent APR at least for the first year.

What's so great about these free credit cards? The primary utility is not for the new credit card user (although free is certainly an temptation - and utile - for novitiate or long clip user, immature or old) but for those who already have got accumulated a brawny amount of debt from the usage of cards that don't measure up as free cards.

As an example, let's state that you owe $5000 on a credit card whose APR is twenty percent. You're going to have got to pay $1000 just to maintain up with the interest. If, however, your credit card is a member of the free credit cards family, your $1000 payment will actually convey the principal down to $4000. What a difference, then, these free credit cards can make!

Free credit cards can best assist you get out of debt when you transfer the balance of another high-interest APR credit card to the account of the free credit card.

You might also profit from free credit cards that charge no annual fee. Some of these make this as a promotional gimmick, eliminating the annual for the first twelvemonth only, and then charging anywhere from $19 to $250 each twelvemonth thereafter. Some instead charge an annual fee in subsequent old age only if you don't utilize the card for the number of purchases the free credit cards companies designate as your minimum requirement.