i received a credit card that says 0% introductory rate for the first 12 months on purchases.what does it mean

Question

i have no idea what it means. i am very new at this i have no idea

Answer 1

You can buy things without interest but must pay the minimum each month on time and pay it all off by the 12th month or it jumps up to a high rate retro to the first day you started using it.
They win if you charge things you can't pay for so owe money at the end so they can get a huge amount of interest and a steady stream of interest for years.

Answer 2

It means as long as you make the minimum monthly payments, there will be no finance charge for the first year from the day they sent you the credit card.
"Finance Charge" is the same thing as interest in most cases, but can include certain other fees..
Example: I buy a computer for $1000.00. As long as the minimum monthly payments are made, the interest charges are nothing for one year from the day the credit card was sent to you.

What you must be careful of is what are the terms effective the day after the year expires.

You are better off just paying the balance in full; but for the first 10 months, from the day the card was issued, you can pay less than the full balance if you feel the need.

WHATEVER YOU DO, READ THE FINE PRINT ON THE CREDIT CARD DISCLOSURE. IF YOU DO NOT UNDERSTAND THE RULES, ASK THE CREDIT CARD COMPANY CUSTOMER SERVICE TO EXPLAIN THEM TO YOU AND TAKE GOOD NOTES WHO YOU TALKED TO AND WHEN AS WELL AS WHAT THEY SAID.

Answer 3

"Introductory rate" means that you the APR (Annual percentage rate) will change after 12 months. For one year you can use the credit card and you will not receive any financial charges, but only for purchases. This will not apply if you want to transfer a balance from one credit card to the new one. But if you still have a balance after the 12 months, you will have the charge. The APR after the year could also range.

Answer 4

a pair of issues to think approximately on the subject of the introductory expenses: They expire, and such as you suggested, you should flow the soundness. there's a danger yet another economic business enterprise is only no longer so beneficiant next 3 hundred and sixty 5 days as quickly as they evaluation your credit record. Your credit status is in line with various issues: on time money, balances to credit shrink ratio, and your finished debt to income ratio. remaining an account impacts the debt to income ratio badly. Many credit enjoying cards now have "punitive pricing", the place the value will develop in case you're previous due by using even sometime, or in case you're previous due with yet another creditor, or regardless of in the event that they no longer evaluate you as credit worth on account which you presently have 10 credit enjoying cards with maxed out limits. in case you flow a stability to an introductory value, do no longer USE the cardboard till THE LOW value era IS OVER! The economic business enterprise applies money any way they see in fantastic condition, yet oftentimes to regardless of stability has the backside hobby value. in case you're making a purchase order at 18% on a similar time as there is an volume nonetheless being charged 0%, your money will flow in direction of that purchase in basic terms after the 0% volume has been paid off (next 3 hundred and sixty 5 days?). That single purchase will sit down there, accruing hobby, compounded month-to-month. in case you're no longer shifting balances from a larger value card, the wonderful component of do with a 0% stability flow is to place the money right into a money marketplace account to collect hobby.

Answer 5

u buy and in most cases u pay a finance charge or service charge for the product to be given to you on a pay charge-(on time) but if it says 0% for 12 months then u pay only what the product cost and no finance charge for a year. If you buy an item for $100.00 dollars and charge it to the credit card and pay it off within a year then that is all you pay-$100.00 dollars but if not paid within a year then you pay for the credit card paying the company u bought the item from and an extra charge for letting you get the item "on time"payment.

Answer 6

It means just what it says. Any purchases you make within the time frame specified will have a 0% rate for 12 months.

Just make sure you pay it off by month 11, and READ THE FINE PRINT CAREFULLY.

Answer 7

It means you will not pay interest on purchases you make for the next 12 months. After the 12 months, your interest rate will go to the standard rate.

If you are late, you will go up to the default rate (usually around 30% interest)

Answer 8

like others said
but if you late with one payment on the minimum payment
the deal is off and normal interest rate apply or thew much higher 30% universal default rate will apply for the balance and any new charges
so BE CAREFUL with such cards

Answer 9

It means your stupid for getting a credit card like that...there going to charge you 8 a month 21% on every doaller and put you in debit.creadit cards should be called debt cards