0__Interest_Credit_Cards_-_Truth_or_Fiction_

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					0% Interest Credit Cards - Truth or Fiction?

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603

Summary:
This article describes the truth behind 0% interest credit cards.


Keywords:
0 Interest Credit Cards,0 APR Credit Cards,0 APR Credit Card


Article Body:
If you are looking for a new credit card then obviously 0% interest
credit cards hold a lot of appeal for you. Anything at 0% interest
nowadays grabs everyone's attention, for that matter! But as far as these
0% interest credit card offers go, there is a lot of subtle dodging that
credit card companies and bank card issuers engage in to ensure you catch
the bait.

So just go ahead and admit it. You are hooked. The 0% APR credit cards
ad that you just saw in the brochure attached in the morning newspaper
has piqued your interest. But seriously ... are these 0% interest credit
cards for real?

The truth is they are and they are not. There are cards that live up to
the promise of a 0% APR credit card, but the truth is that this 0%
interest does not last long. It might just be an initial gimmick to get
you to subscribe to the card offer and once you’re a cardholder, you have
the 0% APR for just a limited time (3 months, 6 months, or if you’re very
lucky 12 months) before they start charging you a higher rate of
interest. The credit card game is truly an interesting one to watch, but
not if you are the suffering player. Read on to know what you can do to
make sure you are not the sufferer.

Understanding 0% APR Credit Cards

Yes, 0% APR credit cards do, in fact, hold a lot of enticement. But here
is what you must do when you find a 0% APR card that has gotten your
attention. Pay attention to the following:

1)   How long the no-interest period will last?
2)   Can you transfer other balances at the 0% rate?
3)   What will the APR be after the introductory period ends?

When you are done assessing these factors, you can properly compare all
of the interest credit card options available.

The Luxuries of Owning a 0% APR Credit Card

If you’ve already accumulated a huge debt on your previous credit cards,
there’s good news for you. A 0% APR credit card can benefit consumers bad
credit histories in a big way, if (and that's a big if) they can get
approved for the card offer itself. That being said, a 0% APR credit
offer allows cardholders to drastically cut down the interest being
incurred on existing debt while it can also help consolidate debts on
other outstanding high APR card balances. There are typically balance
transfer fees associated with this type of consolidation, but if your
credit is sufficient enough, you might be able to avoid fees altogether.

Pitfalls of 0 Interest Credit Cards

1) Most 0% interest credit cards offer 0% interest or no interest only
for a limited amount of time, which varies between 6 to 12 months.

2) If you’re thinking of transferring balances from high interest credit
cards, some of these cards might not even allow you to do so during the
introductory 0% offer period.

3) Some 0% interest credit cards might also charge very high balance
transfer fees.

4) Some of these cards also carry very high penalties for late payments
and
automatically switch you to a much higher variable APR after incurring
even a single late payment.

5) Some 0% APR credit cards charge a very high interest rate after the
introductory (read honeymoon) period.

Yes, the picture is definitely not all rosy, even though you can most
definitely save money on interest charges by using 0% interest credit
cards judiciously. If cardholders fail to pay off their card balances
prior to the introductory offer expiration, if they fail to make payments
on time, or generally disregard their credit responsibilities, these
credit cards can end up costing consumers significantly more than most
will anticipate.