0 Percent Credit Cards – Are They Really A Good Deal
When most people see those 0 percent credit card offers they are ready to jump ship on their current credit card company and get in on what they consider is an excellent deal. After all, with the high rate of interest these days who wouldn’t go for one of these credit cards? But, are these credit cards really such a good deal? Here are a few things to consider before changing to that 0% card.
All 0 percent credit cards charge interest eventually. Take the time to read the fine print and know how long the 0% interest is good for and what your interest rate is going to be after the introductory period is over.
It won’t do you a lot of good to change credit cards if over the long haul you will actually be paying a much higher interest rate after the introductory period ends especially if that period is for an extremely short period of time such as three months.
What does that 0% rate cover? Does that 0% credit card rate cover purchases, balance transfers or both? If the card only covers purchases then transferring the balance of other credit cards to the 0 percent credit card may actually end up costing you more in interest than sticking with your old credit card.
What about transfer fees? In some cases the 0 percent on that credit card is for transfer balances only but, then the company charges you a fee for transferring the balance to their credit card. So while you may not be paying interest on that balance for a limited amount of time the transfer fees these companies charge may be as much as the interest you would have paid had you stayed with your old company.
Consider The Late Penalties. You are going to want to make sure that your credit card fees are paid on time. Many 0 percent introductory offers can be a good deal unless you are late on a payment. Once you are late, you may end up not only losing the 0% interest and paying a huge interest rate but, may actually be charged a whopping fee on top of everything else as well.
While 0 percent credit cards offers may be a good deal for some, they are not for everyone. Take the time to read and understand all the fine print before taking a credit card company up on one of these offers or you just might find that the good deal has turned out to be a dirty trick with you as the victim.
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