Independent Credit Card Blog

Pros and Cons of 0 Interest Credit Cards

Tue, 04 Nov 2008 07:27:00 GMT

One Saturday afternoon, after watching the advertisement on television about a 0% interest rate credit card, people in town started to talk about it.

Did you get amazed when you heard the part about a 0% interest rate credit card? Does it make you think of its trustworthiness? Definitely, it is.

Some of the credit cards start with the so-called “teaser”. This simply refers to cards that offer no interest for even more than 12 months. You can avail this on either your Visa Card or other major credit cards through your bank accounts.

If you find it a problem when shopping on limiting yourself with the items that you want to buy, with this credit card you can follow your desire for a particular duration of time.

However, when you have 0% interest rate credit card, you have to bear in mind three important factors.

1. Duration of no interest rate- Even though there is a clear specification that it can last even more than 12 months, better be clear about it. You may be shocked if ever you will be charged with a very high interest when the time comes because you are not informed about the duration.

2. If transfer of other balances to 0% interest rate is allowable- It is also important for you to know if you can avail this benefit. It will be a great advantage on you if you can apply the 0% interest rate to your other account.

3. If the offer will still end of it will be for life- Good if it is for a lifetime promo. You try to ask the company if this offer will be for life so that you can also encourage your friends to get one.

There are also some disadvantages when you go for this offer. Other 0% interest rate credit card only lasts for about 6 to 12 months. If you plan to transfer balances as well, you will suffer from high origination fees. Likewise, it will give you high interest rate after the introductory period.

After hearing all the details about 0% interest rate credit card, it is now up to you if you want to try it and enjoy the benefits for a duration of time. It is also your responsibility to consider the terms and conditions of the credit card.

If you are planning to transfer balance, make sure that you do it prior to the expiration of the introductory stage of your credit card. Do not forget that this credit card is not intended for paying your previous credit cards.

Be careful in transferring balances as well. Avoid transferring balances that go as high as thousands of dollars especially if you are not sure if you cannot pay it on time. This could leave you a high interest rate than the original balance that you have.

After a thorough analysis, you may now realize that a 0% interest rate credit card is just appealing. Unless you get to know more about it, you will not understand the disadvantages that it can bring you.

Despite of this, 0% interest rate credit card help you in a lot of ways. All you need to do is to be wise enough to avoid the possible consequences of your action. Be very careful to know exactly what your credit cards will cost you and what actions you need to do to make it work to your advantage..

Good Credit Card Offers @ EverythingCreditCard.com

Wed, 01 Oct 2008 17:22:00 GMT

I found a really good site for applying for credit cards. The site is www.EverythingCreditCard.com and there are some really good offers to be found. The site is easy to navigate and seems to be very professional.

Good luck with your applications!

Be careful when choosing a 0 interest credit card

Mon, 14 Jul 2008 03:47:00 GMT

Paying a zero-percent introductory rate on a credit card can be a super deal but you'll need to be careful -- very careful. One misstep and you can kiss that interest-free period goodbye. Let's say you manage to land a zero-percent credit card deal. Congratulations. But before you go out and celebrate -- grab a magnifying glass.

Is that interest-free introductory period for purchases or balance transfers or both? When does the introductory period end? What kind of interest rate will you pay then?

If the zero-percent teaser rate is on balance transfers only, avoid making any new purchases with the card. Issuers have a policy of applying payments to balances with the lowest interest rates first. You'd have to pay off the entire balance transfer before a single penny gets directed to any new purchases you've made with the card.

Be on the lookout for fees. Some cards charge you a fee for every balance you transfer to the card. Both First USA and Citibank charge a fee equal to 3 percent of the balance being transferred. First USA caps its fee at $35. Citibank's fee is capped at $50. It's best to avoid offers with hefty transfer fees.

You'll also want to be quick with your card payments. Pay late even once and that zero-percent interest rate will disappear for good.

How do 0% interest credit cards work and where do I find one?

Mon, 30 Jun 2008 17:18:00 GMT

Zero percent interest will last for a limited time. In the industry this is called a teaser rate. You want to choose the credit card with the longest zero percent interest time. If you are one of the fortunate souls, who has excellent credit, or even if you aren't, you can call the credit card companies and ask them to match terms or better their terms to compete with other offers. Most are so desperate, they will do it even though you are not a customer yet! Once you have the card, transfer your balances and pay off as much as you can before the zero percent interest offer expires.

Where can you get the sweetest deals? Discover's Platinum MasterCard, Chase's Platinum Visa, and MBNA WorldPoints Platinum Plus MasterCard all offer zero percent interest from eight months to one year.

How to NEVER PAY INTEREST on your credit card

Mon, 30 Jun 2008 17:12:00 GMT

To truly make the most of zero interest credit cards, you can keep transferring the balance to new zero rate offers before the end of each introductory period. If you do this, you will never pay interest. Unfortunately, with the best will in the world, life tends to take over and we can easily forget to transfer the balance before interest payments kick in. Some of the better online credit card services also offer a reminder service to let you know when your interest free period is due to expire so that you can apply to transfer your balance to a new interest free credit card offer. It's worth your time to manage this process and save potentially thousands of dollars on interest.