Zero Interest Credit Card Offers: What You Need to Know Before Getting One
Zero interest guaranteed. Sounds like a great deal on credit cards, isn't it? These days, many credit card companies offer credit cards with zero-percent interest rates. Zero interest credit card deals, however, work only for people with good credit standing and those who use the card with great caution.
Once you make just one minor mistake in using your no-interest credit card, you will be slapped with a higher interest rate than that of a regular credit card. Ouch. To avoid this horrifying situation, take heed of the tips discussed below.
Pick the Right Credit Card
All cards that offer zero interest rates are not equal. What seems to be an attractive offer might turn into a so-so deal or even a bad one if you do not choose the right zero interest credit card carefully.
It pays to assess a credit card based on these three factors:
1. Duration of the zero-interest offer - Credit cards differ in the span of time the no-interest rate takes effect. Look for credit cards that offer low interest rates at a longer period.
2. Balance transfer - Choose a credit card that allows you to transfer your existing balance, thus creating an interest-free loan for you.
3. Penalties and other fees - Additional charges on your credit card such as balance transfer fee, annual fee, and fines for late payments may render a zero-interest offer useless.
Pay Your Credit Card Bill on Time
There are two guaranteed ways to waste your money with a zero interest credit card. First, you carry a balance after the expiry of the no-interest rate period. In that case, you will pay again a market rate for the amount you borrowed using the card. Second, you pay off your bill beyond the due date. This is a surefire way to get a penalty for late payment. It means having to kiss your zero-percent interest goodbye. Many credit cards punish cardholders who fail to make timely payments by replacing the zero-percent interest with a higher interest rate of up to 29 percent.
Of course, you want to save money. That is why you are going to apply for a no-interest credit card in the first place. But try your best not to abuse the privilege that comes with a zero interest offer. Mind you, the price to pay for late payments is higher than you could imagine.
Don't Miss Out on the Details
Overlook one major detail in your zero interest credit card, and you're in for financial trouble. A case in point: the interest-free introductory period. Before you use your credit card, you must figure out if it offers an option for balance transfers, purchases, or both. Is your zero-percent rate for balance transfers only? If so, it would be a bad idea to use the card on your next trip to the mall, unless you are willing to pay the huge interest. You have to fully pay off your balance transfer first before you make a new purchase using your credit card.
On the other hand, if your card gives you a new purchase option, you will enjoy no interest on your new purchases. However, this option does not give you all the right to splurge on every item you desire. You still have to make sure you fully pay your bill on time.
Having a zero interest credit card can be either a boon or a bane for you, depending on how careful you are when using it. Give yourself peace of mind by making sure you use your credit card properly.
Once you make just one minor mistake in using your no-interest credit card, you will be slapped with a higher interest rate than that of a regular credit card. Ouch. To avoid this horrifying situation, take heed of the tips discussed below.
Pick the Right Credit Card
All cards that offer zero interest rates are not equal. What seems to be an attractive offer might turn into a so-so deal or even a bad one if you do not choose the right zero interest credit card carefully.
It pays to assess a credit card based on these three factors:
1. Duration of the zero-interest offer - Credit cards differ in the span of time the no-interest rate takes effect. Look for credit cards that offer low interest rates at a longer period.
2. Balance transfer - Choose a credit card that allows you to transfer your existing balance, thus creating an interest-free loan for you.
3. Penalties and other fees - Additional charges on your credit card such as balance transfer fee, annual fee, and fines for late payments may render a zero-interest offer useless.
Pay Your Credit Card Bill on Time
There are two guaranteed ways to waste your money with a zero interest credit card. First, you carry a balance after the expiry of the no-interest rate period. In that case, you will pay again a market rate for the amount you borrowed using the card. Second, you pay off your bill beyond the due date. This is a surefire way to get a penalty for late payment. It means having to kiss your zero-percent interest goodbye. Many credit cards punish cardholders who fail to make timely payments by replacing the zero-percent interest with a higher interest rate of up to 29 percent.
Of course, you want to save money. That is why you are going to apply for a no-interest credit card in the first place. But try your best not to abuse the privilege that comes with a zero interest offer. Mind you, the price to pay for late payments is higher than you could imagine.
Don't Miss Out on the Details
Overlook one major detail in your zero interest credit card, and you're in for financial trouble. A case in point: the interest-free introductory period. Before you use your credit card, you must figure out if it offers an option for balance transfers, purchases, or both. Is your zero-percent rate for balance transfers only? If so, it would be a bad idea to use the card on your next trip to the mall, unless you are willing to pay the huge interest. You have to fully pay off your balance transfer first before you make a new purchase using your credit card.
On the other hand, if your card gives you a new purchase option, you will enjoy no interest on your new purchases. However, this option does not give you all the right to splurge on every item you desire. You still have to make sure you fully pay your bill on time.
Having a zero interest credit card can be either a boon or a bane for you, depending on how careful you are when using it. Give yourself peace of mind by making sure you use your credit card properly.
