Using a 0% APR credit card can be a smart financial move, especially when compared to the average interest rate of 23.37% on traditional credit cards. These cards offer an introductory period where you are not charged interest on new purchases or balance transfers, allowing you to save significantly if used wisely. However, many people make common mistakes that can lead to costly consequences. One major pitfall is not selecting the right type of 0% APR offer, as some cards may only provide the benefit for either purchases or balance transfers, not both. Additionally, the temptation to overspend can lead to unnecessary debt, as just because interest isn't charged initially doesn't mean the money doesn't need to be repaid. Finally, relying solely on minimum payments can result in a hefty balance once the introductory period ends, leading to high interest charges. Planning and discipline are key to maximizing the benefits of a 0% APR card.
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