If you want to get a new credit card, it's clear that 0 percent interest credit cards are a big draw for you. Even something with no interest gets people's attention. But credit card companies do a lot of sneaky things to make sure you take the bait when they offer credit cards with no interest. The question is whether you will.
Admit it. You can't stop thinking about the 0 APR credit card ad you just saw in the paper this morning. Are these credit cards with no interest rate real or just a myth?
The truth is that both are and are not true. They are real because there are some cards 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 apply, and once you're a cardholder, you'll only have the 0 APR credit card for a short time (3 months, 6 months, or if you're very lucky, 12 months) before they start charging you a higher rate of interest. If you are the losing player, this credit card game is really interesting to watch. Read on to find out what you can do to avoid being a victim.
Learn About Credit Cards With No Interest
0 APR credit cards do have a lot going for them. But here's what you need to do if you find a card with 0% APR that interests you. Pay attention to how long the no-interest period will last, whether you can transfer other balances at the 0% rate, and, most importantly, what the APR rate will be when the offer ends! When you're done weighing these factors, you can choose the right card from the options you have.
The perks of having a credit card with no interest rate
Even if you have a lot of debt from your old credit cards, there is good news for you. People with big credit card balances know that a credit card with 0% APR helps them a lot. With the help of a 0 APR credit card, these people can not only lower the amount of interest they pay on their debt, but they can also get cash advances at reasonable prices, which can help them pay off high-interest debt. But there are fees and APRs that go along with these cash advances.
Risks of credit cards with no interest
- 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 introductory 0% APR period.
- Some of these credit cards with no interest charge very high fees for late payments and switch you automatically to a variable APR rate if you miss a payment.
- Some credit cards with 0% APR may also charge high balance transfer fees.
- After the introductory (honeymoon) period, some 0 APR credit cards have very high interest rates.
- Most 0% interest credit cards (in fact, all of them) offer 0% interest or no interest for a limited time, usually between 6 and 12 months.
Even though some 0% interest credit cards can help you save money, not using them wisely can cost you. So pick and use them carefully.
