0% Credit Cards: Are They For Real?

Judging from afar, seeing a zero percent interest credit card may seem like the best deal ever

. But is this really true? Can you really get a 0% interest credit card these days with no catch or tricks hidden? Why do some cards offer a 0% interest when other credit cards ask for interest rates as much as 15% or more? Are 0% credit cards for real?

A Zero Percent Interest is Not Everything

It is true that there are genuine credit cards that offer zero percent interest but it doesn't mean that you'll never incur a single charge with all your transactions. First of all, you need to ask, what particular transaction does the 0% apply?

Perhaps, the 0% interest applies to balances transfers that you moved over from another card. This means, you can pay off all the charges you transferred from other cards within the given period without incurring the monthly interest rate. On the other hand, the 0% interest may also pertain to your purchases which means you can use your card for shopping, carry over your balances from month to month without getting charged with additional interest. Take note that the 0% interest offer may apply to either your balance transfers or purchases alone.

Understand the Restrictions

Some cards generously allow the zero-interest offer for both balance transfers and purchases but you should verify this condition for sure before signing up for the card. But be careful. Even if your card offers zero interest on purchases, it may not necessarily include all types of purchases. The 0% may only be eligible to few selected products or for purchases made from selected shops only. If you don't really buy from those shops, then you may not get much benefit from the credit card after all.

Also, don't forget that the 0% offer will only apply for a limited time. This amazing 0% interest is not a permanent offer. Thus, even if the credit card offers zero interest on both balance transfers and purchases, it may only be for the first three months or six months from your membership. After the sixth month, you could be charged with regular rates and cost which can be higher than other credit cards.

Yes. There are 0% interest credit cards that are real but the better question is, do you really need one? You can only benefit from a 0% credit card if you know how to use it to your advantage. If you currently have unpaid balances in one or two of your credit cards, then a 0% balance transfer credit card may just be what you need. However, you'll need to look for one that will give you ample time to complete paying off the balances you transferred over. Thus you can enjoy the 0% interest offer to the fullest and save a great deal from additional interest charges that you could have incurred with your current credit cards.

If you want to get a 0% credit card, be vigilant with your search and examine all the terms and conditions that apply. You'll also want to check on your credit score because a 0% credit card requires an excellent credit score to be qualified.

Copyright (c) 2009 Liz Roberts

by: Liz Roberts

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