If you've ever gotten one of these mail-in offers, you know how tempting they can be. They say that for the first few months after you get your card, you won't pay any interest on purchases or balance transfers. But there are some things you need to know about these offers before you sign on the dotted line and give them permission to check your credit report.
If you've ever gotten one of these mail-in offers, you know how tempting they can be. They say that for the first few months after you get your card, you won't pay any interest on purchases or balance transfers. But there are some things you need to know about these offers before you sign on the dotted line and give them permission to pull your credit report.
The 0% APR offer is only good for a short time.
Most credit card companies that offer a 0% interest rate deal only do so for a certain amount of time. This means that you won't have to pay any APR for six months, nine months, or up to a year. You'll need to look at the small print to find this information, and you'll need to be sure to notice when the time is up.
- You might not be able to use the 0% APR offer on everything you put on the card.
During the introductory 0% APR period, many cards offer 0% APR on both balance transfers and purchases. But some cards only offer 0% APR on balance transfers, and the interest rate on purchases is very high.
- You might not be eligible for the 0% APR offer if you don't pay on time.
Most of these credit card offers depend on how good of a member you are. This means that you have to make your minimum payment on time every month during the introductory period or you will lose your nice 0% APR and have to pay a rate that is usually between 19% and 21%.
- After the introductory period is over, the 0 APR offer might come with an interest rate that is way too high.
Again, after the 0% APR period is over, the interest rate for these cards is usually between 19% and 21%.
- The 0% APR credit card won't help your credit score.
Remember that combining your credit cards or transferring the balance of your loan will help you pay off the balance without paying interest, but it won't fix the damage to your credit that has already been done.
