0% Interest Credit Cards - Truth or Fiction?

This article tells the truth about credit cards with no interest.

If you want a new credit card, it's clear that 0% interest credit cards are very appealing to you. Anything with 0% interest gets everyone's attention these days, for that matter. But when it comes to these 0% interest credit card offers, credit card companies and bank card issuers do a lot of sneaky things to make sure you take the bait.

So just come out and say it. You're caught. You're interested in the ad for credit cards with 0% APR that you just saw in the brochure that came with the morning paper. But really, are these credit cards with 0% interest for real?

In reality, they are and are not. There are credit cards with 0% APR that do what they say they will, but the truth is that this 0% interest doesn't last long. It might just be a way to get you to sign up for the card offer in the first place. Once you have the card, the 0% APR might only last for three, six, or even 12 months before they start charging you a higher rate of interest. The game of credit cards is really interesting to watch, but not if you are the one who is losing. Read on to find out what you can do to avoid being a victim.

Understanding Credit Cards with 0% APR

Yes, credit cards with a 0% APR do have a lot going for them. But here's what you need to do when you find a card with 0% APR that interests you. Watch out for the following:

1. How long will the time without interest last?
2. Can you move other balances at a 0% interest rate?
3. When the introductory period is over, what will the APR be?

After you've thought about these things, you'll be able to compare all of your interest credit card options in a fair way.

The perks of having a credit card with 0% APR

Even if you have a lot of debt from your old credit cards, there is good news for you. A credit card with 0% APR can help people with bad credit in a big way, if (and this is a big if) they can even get approved for the card. So, a credit offer with 0% APR lets cardholders drastically cut down on the interest they pay on their existing debt and can also help them consolidate debts on other cards with high APRs. Balance transfer fees are usually part of this kind of consolidation, but if your credit is good enough, you might not have to pay any fees at all.

Risks of credit cards with no interest

1. Most credit cards with 0% interest have 0% interest or no interest for a set amount of time, usually between 6 and 12 months.
2. Some of these cards have very high fees for being late on payments,
3. Some credit cards with 0% interest may also have very high fees for transferring a balance.
4. If you want to transfer balances from credit cards with high interest rates, some of these cards might not even let you do that during the time when they offer 0% interest.
5. After the introductory (honeymoon) period, some credit cards with 0% APR have very high interest rates. If you are even one day late on a payment, your APR will go up to a much higher variable rate.

Yes, things aren't perfect, even though you can definitely save money on interest charges if you use 0% interest credit cards wisely. If cardholders don't pay off their balances before the introductory offer ends, don't make payments on time, or don't take care of their credit responsibilities in general, these credit cards can end up costing a lot more than most people expect.