How do 0% APR on Purchases work?

I had a question about a recent Credit Card offer I got in the mail. Its from Capital One offering 0% APR on Purchases and 0% APR on Balance Transfer until December 2007.

If I purchase something using this card, it bascially means that I have until December 2007 to pay off the balance without accuring any interest? So say if I purchase something for $6000, I have 12 months to pay it off or I will accure interest charges for the entire 12 months?

The APR after 12/2007 would be 9.99%, would this be considered a good credit card to get if I am planning on buying something expensive and having enough time pay it off?

Any suggestions would be helpfull, Thank You!

How do 0% APR on Purchases work?yes loans

I%26#039;d have to see the terms of the contract but it sounds like interest doesn%26#039;t start accruing until Dec. 2007 so if you purchase anything and pay it off before that date, you wouldn%26#039;t incur interest. And 9.99% is a decent rate.

How do 0% APR on Purchases work? loan

Continue to read the fine print. Usually with deals like this, if you%26#039;re late with any payment on ANY credit account you have (yes, even OTHER credit cards or charge accounts) then you lose the 0% APR and finance charges begin immediately. You%26#039;ll also lose the 9.99% APR, in other words, you%26#039;re APR will immediately go to something like 19.99%.

How will they know if you%26#039;re late with another card? The other account holder reports this sort of thing to the credit reporting agencies and Capital One will continually look at your credit report for late payments.

No, this is not a good thing.|||There are 2 main types of credit cards. Personal (bank) credit cards and store issued (private label) credit cards. With bank cards (capital one) they normally offer an incentive for new customers. They are offering you NO interest on anything purchased or transfered until Dec. 2007. (as long as there is no default meaning late payments, going over the limit etc. ) For example... If you transfer $1000 to the credit card in January you will have a minimum payment of roughly $23/month. Let%26#039;s say Next December you still owe $200. At that point you will begin to get charged interest starting on that $200 ONLY. (roughly $1.60/month)

FYI...Store cards are a whole different story.