First of all, 0% financing won't be available on credit cards forever. Let's make sure everyone knows that the APR on your low-interest credit card will go up after a certain amount of time, usually 6 to 12 months, based on your credit score. If you were approved for a credit card with 0% interest, your credit score is probably good and your APR should be competitive.
During and after the introductory period, there may be fees that come with your credit card. Let's look at them here:
Annual Fee: If your card has an annual fee, there's nothing you can do about it. The fee will be added to your card either the second billing cycle after you get the card or the first billing cycle after your introductory period. Annual fees are not as common as they used to be and can range from $15 to over $100 depending on the card. Any annual fee that might be charged will be made clear in the terms and conditions.
Minimum Finance Charge: This one is pretty easy to understand. No matter how much of a balance you have on your credit card at the end of a billing cycle, you will have to pay at least a minimum finance charge. This fee is different for each card, but it's usually about $1.00. If your APR is 11% and you leave a balance of $0.50 on your card, you will be charged the minimum finance charge, which would be $1.00 in this case.
Transaction Fees for Balance Transfers: Obviously, this only applies if you transferred a balance, but many people apply for 0% credit cards so they can transfer a balance to a new card and avoid finance charges for a limited time. When the balance transfer goes through, there will almost always be a fee and a minimum fee. The average transaction fee is about 3% of the amount being moved, and the minimum fee is usually $10.
Late Payment Fee: Another fee whose name says it all, this one is charged when you pay late. When it comes to introductory 0% APR credit card offers, if you make a late payment to your creditor, you will have to pay a late payment fee and your APR will go up right away to either its normal rate or its much higher default rate. The fee itself is usually based on how much money you have left in your account. "$15.00 if the balance is up to but not including $250.00; $39.00 if the balance is $250.00 or more." would be an example. This can vary from one issuer to the next.
Fee for Going Over the Credit Limit: On the market today, this fee is very rare, but it's still there. If you manage to charge more than your card's limit, which is hard to do now that all purchases are checked electronically, you will be charged a fee. This fee is usually around $35, but it can be a lot more.
International Transactions: A conversion fee is charged whenever a credit card is used to change money from one currency to another. This means that if you are on vacation in Italy and use your American credit card to buy something, you will be charged an extra fee. This fee is usually about 3 percent of how much money was spent. Don't be fooled by the word "International." This fee can also happen when you buy something on the Internet if the seller doesn't only accept US dollars.
None of these fees is so high that it looks like a scam, but you should try to avoid them if you can. Every fee you pay takes away from the value of your 0% APR credit card and could make your APR go up to a level you don't want.
