0 Interest Credit Card Offers: A Wise Choice Or A Trap?
Think you need a 0 interest credit card? Here are a couple of tips to avoid getting in over your head. Here is a news flash for you. Zero interest credit card offers really are not interest free.
In fact, most of the time, 0 balance transfer credit card could cost you more than if you apply for a credit card without the promise of an interest free period. Also, do not forget rewards cards. If you take a look at what you can get from a rewards card that you will actually use, you might just find that the benefits exceed those offered by a 0 interest credit card offer.
So, take a few minutes and consider how to apply for a credit card that best suits your spending habits.
Zero Interest Credit Cards Are Not Interest Free
Check the fine print on any interest free credit card application and you will quickly discover that an interest free credit card is really not interest free at all. When you read the terms and conditions of the 0 Interest Credit Cards offers, you will usually find that the zero interest period lasts only a few short months and you will have to pay a 3-5% balance transfer fee.
Of course, after the expiration of the 0 interest period, you will be charged interest on the original amount, the surcharged amount. Often, the rate you will pay after the balance transfer period ends is quite high.
So, if you carry a balance on your credit card, these charges can add up to a large amount of money if you fail to check the terms and conditions (particularly the APR) before you apply for a credit card with a 0 balance transfer option.
Choose The Credit Card Application That Best Suits You
Every consumer needs to carefully choose to apply for a credit card that best reflects their own unique financial situation.
Consumers who regularly carry a balance or anticipate a large installment purchase may be better off with a traditional credit card that has good terms and a low APR. If you can find a rewards card that you will actually use; it might be a better alternative as well.
In the end, you are responsible for choosing a credit card that is best for you and your family.