Taking Charge of Your 0 APR Reward Credit Card

Zero interest rate credit cards with rewards are greatly in demand among cardholders. In response to the market demand, credit card issuers such as American Express, Discover, Citibank and Chase each have their own 0APR reward cards to offer. But does the 0% APR guarantee the best deal?

Zero Interest Reward Credit Cards - Don't be Misled

Enjoying the benefits of a reward credit card with zero interest depends on the cardholder. If you make it a point to pay off your balances on time, you should have no problem maintaining a good credit history. However, missing your payments can be a big problem.

Yes, even a single delay with your payment can disqualify you from enjoying the zero interest rate-offer. Credit cards with reward programs are particularly very strict about their rules. If you can't keep up with your payments, you may even lose your chance to earn rewards.

It is also important to remember that the 0% interest rate isn't a permanent deal. A reward credit card may offer 0% APR as an introductory promo for 3 to 6 months. As soon as the introductory period ends, you will be charged with the regular APR. Are you aware of how much the regular rate would be?

Keep in mind that different issuers have varying rules in implementing reward systems. For instance, certain purchases may not be valid and may not give you points at all. Even if you shop a lot from a particular store, if that store isn't affiliate with your reward credit card, you may not be earning anything from those purchases. As a cardholder, you should be clear about the exact terms and conditions of your reward credit card.

Does Your Credit Rating Qualify?

Reward credit cards with 0% APR offers are usually reserved for customers with very good credit rating. Before submitting your application, see to it that your credit score qualifies. Obtain a copy of your credit report to avoid getting declined.

Do not try to submit multiple applications to different issuers just to try your luck of getting an approval. Remember, if you get declined because of a low credit rating, too many inquiries in your report can only pull down your credit score all the more. If your current rating prevents you from getting a reward credit card, the best thing to do is work on improving your credit history.