Signs that say "Zero Percent Interest" or "Flat 50% Off" always make me a little bit suspicious. When that happens, the only thing I can think is, "What's the catch?" Most things have a catch. The question is whether the downsides are worse than the benefits. I ask myself this right before I buy a new credit card or go into a sale. Most of the time, I don't think the catch is that important when I look at the bigger picture.
When I'm looking for a new credit card, I usually have a lot of these cynical thoughts. I feel like there are too many good deals going on. It seems like they want to sell me those credit cards too much. Why is everybody so excited?
I mean, why would a business offer things like credit cards with no interest? What do they get out of it? And what about credit cards with no interest on balance transfers? What's up with those people?
Well, once you stop being sceptical, I think you'll find that most of these offers are pretty much what they say they are. Most interest-free credit cards let you avoid paying interest for a certain number of months. After all, there is so much competition between credit card companies that they can't do much. Each must bring in more customers than its closest competitor.
The same is true for credit cards with 0% interest on balance transfers. The companies that give out credit cards want to do business with you. They want to sell you one of their credit cards. So they have to use tricks like this to get you to agree with them. In fact, balance transfer credit cards are a great example of how one credit card company can steal customers from another.
What's going on? If you have a credit card with one company but wish you could get a different one with a different interest rate, you might want to get a balance transfer credit card. There will be many cards that offer you deals you won't want to turn down.
In the world we live in now, competition is everything. Everyone is in the rat race to make more money and to win. So, you shouldn't take offers like "0% Interest" at face value, but you should keep in mind that you could be a customer. The customer is the king in this day and age.
