The temptation will always be there to fill out the credit card application. Imagine purchasing an item from a department store, a catalog or online without worrying about coming up with the cash. The cash-on the barrel theory is out and the ?worry about it when the bill comes in the mail? thinking is in. Sadly, many otherwise smart and decent individuals get caught in a financial ?noose? this way. Unfortunately, it?s the way of the world and it doesn?t seem like it?s going to disappear anytime soon.

Credit is the specific and potential level of not only borrowing, but purchasing power approved by a financial institution. Credit is the tool for achieving fiscal goals when used the correct way. However, it becomes quite dangerous to one?s financial being when used unwisely. It?s crucial to understand the purpose of credit in our personal finances.

Credit cards quickly replaced cash as a means of the purchasing of household goods, gasoline, electronics, restaurant dinners, and cocktails as well as online sales, of course. In a significant part of today?s economy, cash has gradually become the exception, not the rule. It just so happens that credit cards has become one of the most lucrative businesses for lenders. Things are getting so out of hand with high-interest markups and unbelievable fees in the credit card offer that even the deceased has received credit cards occasionally.

Fortunately, society has become more sophisticated and educated when it comes to learning how a credit card works when you apply for a credit card. Once you fill out the credit card application, it is important to consider low-interest introductory rates. Your brand new credit card may be as low as 0 percent for the time period. Imagine how excited one would be over a 0 APR credit card. Now, keep in mind with this credit card offer that the introductory rate was 0%.

Good Reasons for using 0 APR credit One of the best uses is to pay for your stock options with 0% credit and hold it for a year to avoid the short term capital gains. You may need to transfer the balance once or twice, but done smartly you will have huge savings considering what you would pay in short term capital gains.

Here are a few things to consider before the bank or online credit card approval:

?Does this new card charge an annual fee?

?Does this charge a transfer-the-balance fee?

?What is the interest rate on a credit card balance transfer subsequent to the introductory period?

?Will the credit card increase its rates in the case of late or skipped payments?

?Does the 0 percent introductory rate apply to new purchases on the new card or just to the transferred amount from another loan?

You can make this work for you with a little knowledge when you apply for a credit card. To assure the 0 APR credit card, call each lender on the debt table, so to speak, and ask if the former lender will match the 0 rate on the new credit card. When any of the lenders adjust the rates, it?s important to remember to alter the order on your table properly. In short, your online credit card approval actually was your gain.

Kory Elgar writes about business and finance and leveraging credit. Find out more about how to use balance transfer credit cards at http://www-credit4you.info