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How To Get Free Credit Cards
By: Morgan Hamilton
Free credit cards - what a concept! We're all enticed by the very word free. The
more common term for free credit cards, however, is 0% (or zero percent) APR
credit cards. APR stands for annual percentage rate. In other words, free credit
cards can refer to those that charge you no interest on the purchases you make
with them.
Years, and decades 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
turn were influenced by the federal reserve. 18 percent was then a fairly
standard APR. This was clearly not a time 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 institution that accepted deposits and gave out loans,
served simply as issuers of credit cards. These still didn't create free credit
cards, but they did have a decreasing effect on credit card APR, because
competition for credit card users started to become stiffer.
Nowadays, unlike the past decades, you're almost certain to find introductory
promotional offers on just about every credit card. While they won't always
qualify as one of the free credit cards, most will qualify as low interest first
year credit cards. The most popular, of course, are the free credit cards - the
ones that offer the zero percent APR at least for the first year.
What's so great about these free credit cards? The primary usefulness is not for
the new credit card user (although free is certainly an enticement - and useful
- for novice or long time user, young or old) but for those who already have
accumulated a hefty amount of debt from the use of cards that don't qualify as
free cards.
As an example, let's say that you owe $5000 on a credit card whose APR is twenty
percent. You're going to have to pay $1000 just to keep up with the interest.
If, however, your credit card is a member of the free credit cards family, your
$1000 payment will actually bring the principal down to $4000. What a
difference, then, these free credit cards can make!
Free credit cards can best help 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 benefit from free credit cards that charge no annual fee. Some of
these do this as a promotional gimmick, eliminating the annual for the first
year only, and then charging anywhere from $19 to $250 each year thereafter.
Some instead charge an annual fee in subsequent years only if you don't use the
card for the number of purchases the free credit cards companies designate as
your minimum requirement.
About the Author:
Morgan Hamilton offers expert advice and great tips regarding all aspects
concerning Credit Cards. Get the information you are seeking now by visiting
www.GetQualityCreditCards.com.
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