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Be Careful with 0% APR Credit Card Deals!

2008-05-06

It is estimated that most cardholders are searching for 0% APR cards, or at least for cards with low interest rates. It would be awesomely great to carry the card that requires no interests to be paid. But do these cards really exist? Can you find the card with 0% APR? Yes, you can. Such credit deals do exist, but unfortunately they do not enable you to enjoy interest-free period for the life of your account. As the saying goes, good things come in small packages. And just like this, this interest-free period on your card will not last forever. The length of the promotional period is stipulated in accordance with your credit card agreement, and it varies from company to company. Though these deals look extremely tempting, cardholders should be very careful when choosing 0% interest card.

If you expect to obtain cards with the interest-free period, you'd better check your credit first. These credit deals are mostly designed for people with good or excellent credit. No card company is ready to give an interest-free card to a cardholder who tends to max out his/her plastics, or who's made several late credit payments.

We must acknowledge the fact that one can hardly resist the temptation of applying for the card that offers 0% APR. It's worth mentioning that it's a very common credit bait. Customers do like when something is provided for free. But sometimes, teaser rates can be used to lure lots of customers.

Plastics with zero percent rates are irresistibly great, but they may have certain pitfalls that result in serious problems. If you are eager to get the card with zero percent intro rates, do not spare your efforts to check the ongoing APR on this plastic. Some cards may charge the annual percentage rate that is far from zero.

When carrying 0% interest card during the introductory period, you are not protected against default rates that may come all of a sudden. One late payment is enough to say good-bye to 0% interest rates, and say hello to so-so deals with pretty high interest rates.

Generally, these deals come with 0% APR on purchases or on balance transfers. The benefits you get from zero percent APR on purchases is quite clear, but not everyone manages to make the most of the introductory rates on balance transfers.

The point is, some rewards credit cards come with 0% APR on balance transfers. First, you shift the balance onto a new card, then you start charging new purchases on this card. And somehow, you realize that it's getting tough to cope with your credit debts. If you want to make the most of your zero percent rates during the introductory period, make sure you understand all the consequences.

So, when selecting a new credit card, you decide to apply for cards with intro period, pay close attention to the following details, including the length of introductory period, whether this rate is for purchases or balance transfers or for both. If you choose the card for shifting the balance, search for the card with the introductory period that will be enough to pay off your debt without interests. And by all means, check the ongoing rate. If it suits you, feel free to submit credit card application.