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What Makes a 0% APR Credit Card An Attractive Offer?

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Published: 29Jul2010
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Have you ever wondered why zero percent APR credit cards are so popular among credit card holders? Why do you think they seem so exciting? Undoubtedly, the 0% APR offer is what makes these credit cards click. Anyone who hears the offer zero interest will surely be interested to apply for the card. But are they really as good as they seem to be? Should you get a zero APR credit card? Can it really help you solve your credit card problems? Let's consider these questions one by one.

What 0% Interest Really Means

What does the zero percent interest mean? The zero interest will not cover a very long term. Some credit cards give the 0% interest rate for a period of six months while others may give as long as 12 months to enjoy the zero interest rate. In any case, when the introductory period expires, regular interest rates will apply.

Also, the zero interest offer may apply either on purchases or balance transfers in your account. You need to very sure whether the zero percent rate applies to the balances you transferred alone or to the purchases you've acquired. If the 0% rate applies only to balance transfer, you should be careful not to use your credit card for purchasing expensive items that you can't afford to pay back in full at the end of the month. Remember that the zero interest only applies to your balances transfer but you will still incur the interest rate on your new purchases. In addition, although you may enjoy zero interest, you could still be charged with transfer fees each time you transfer your balance from another credit card.

What Happens After the Zero Percent Interest Offer? What will the interest rate be when the introductory offer expires? Watch out! The teaser rate can be misleading. If you don't check your credit card's terms and agreement, you may be surprised to find yourself with a credit card that has an unreasonably high rate of interest. Even worse, if you fail to complete your payments with the balances you transferred, you will have to pay for these balances with high rate. If you are going to choose a zero percent interest credit card, better look for one which will maintain reasonable interest rates even after the zero interest offer ends.

Consequences of Zero Interest Credit Cards

Most credit cards with zero interest offer impose strict rules and conditions particularly when it comes to submitting payments. Not submitting you payments on or before your due date can cost you a disqualification from enjoying the zero interest and you could be charged with the regular rates. Aside from that, you may be required to pay the penalty fee which can only add up to your debts. Therefore, if you have made the decision to switch from a regular credit card to a zero interest credit card, you should be clear about all the rules and you should be very aware of your payment obligations.

Copyright 2008 New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here low interest credit cards for cards that suit your needs.

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