The Truth about Credit Card 0

2007-06-20 15:49:53

( Financial )



In the market for 0 interest credit card? These products are the hottest commodities offered by most credit card issuers. As the competition in the industry has become tougher than ever, credit card 0 has become one of their marketing strategies in order to bring in more customers to their fold.

One cannot deny the fact that credit card zero has emerged as one of the top promotional catch. However, before you make one step towards your local credit card store, you need to have knowledge about this offer first to make sure that you will not be shortchanged by this deal.

The Nature of Annual Percentage Rate

When applying for a credit card, you need to be aware of the annual percentage rate (APR). This refers to the interest that will be applied on your purchases, cash advances, and other fees. Credit card 0 is a good alternative to reduce your interest. However, you need to realize that the offer is valid only for a certain period of time. Credit card firms are profit-oriented and the APR they charge on their customers is one way by which they can get some profit.

In addition, you should realize that this deal is only intended to get people to apply for their credit card. But just like in everything that sounds too good to be true, there is always a catch involved.

Common Zero APR Pitfalls

When considering a 0% APR card, you should determine the extent of the interest rate. Most credit card 0 are good for three months to one year. Compare various offers and find out if the deal will really benefit you.

Moreover, you should have information about the applicable rate upon the termination of the promotional period. You definitely do not want to find yourself paying for high interest when the promotional offer is no longer in effect. This will help you in budgeting your monthly payments as well as controlling your purchases should you wish to continue the card.

Furthermore, it will also be helpful to find out the various features and benefits of credit card 0. If the card allows you to perform balance transfer while the introductory period is still in effect, it could be an opportunity for you to settle your outstanding debts at a reduced interest.

Credit card 0 is undoubtedly a promo that you cannot simply resist. Keeping yourself informed on how you can take advantage of the low interest can be an assurance of the best credit card offer.


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