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The Fifth Third Preferred Cash/Back Card trounces competitors with its 2% return rate—and its 0% intro APR offer incentivizes folks with credit card debt to transition.
Pros and Cons of 0% APR Credit Cards Pros: Save on Interest : The main advantage of a 0% APR card is the ability to save money by avoiding interest payments during the promotional period.
A 0% intro APR credit card can be a useful way to pay for large purchases or consolidate high-interest credit card debt, acting like a no-interest short-term loan if used responsibly.
(The data actually come from installment loans [closed end loans], but can also be used as a fair approximation for credit card loans [open end loans]). The table shows the loss rates from borrowers with various credit scores. To get a desired rate of return, a lender would add the desired rate to the loss rate to determine the interest rate.
Common personal loans include mortgage loans, car loans, home equity lines of credit, credit cards, installment loans, and payday loans. The credit score of the borrower is a major component in underwriting and interest rates of these loans.
Debt to pay off. Monthly payments. Time to pay off. Interest/fees paid. Card with 15-month intro APR offer. $5,150 (principal balance + BT fee) $300. 17. $150 BT fee, $12.23 in interest
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