subject: The Pros and Cons about Zero Interest Credit Cards [print this page] The Pros and Cons about Zero Interest Credit Cards
Since a long time we have reaped the benefits of several professional debt relief companies and have made good use of the debt care solutions like debt consolidation and debt management which made the process of debt settlement easier and affordable. A credit card with zero percent interest can be the most alluring deal in the wake of heavily laden credit card debt, consumers should be extra careful about the terms and clauses as avoidance of the same can land them up in troublesome financial situation. With interest free credit card offers what appears to be a great deal could turn into an average or even a sour deal if the card holder fails to be cautious with it. Moreover, one needs to show evidences of his/her good credit history in order to qualify for a zero interest credit card as no issuer is going to offer the facility to someone who has maxed out on his/her credit cards or has been late on several card payments. Also one has to make sure and keep away from the scams and false allurements of credit cards who wrongfully claim to have zero interest rate. In case of debt repayments, zero interest credit cards have its advantages and disadvantages as follows:
Advantages: with the help of interest free balance transfer, it is possible to avoid paying thousands of dollars in interest each year as the typical rate of APR is normally in the 10-20% range. Being interest free implies that a higher percentage of each monthly repayment will go towards debt reduction. Subject to availability and credit score, customers regularly perform a series of low rate balance transfers in order to clear debt. The new card provider takes the entire responsibility of the zero percent balance transfer, once we provide the basic information.
Disadvantages: A typical charge of 4% fee will be charged as transfer fee by the financial institution in order to cover any administrative expenses. The recent legal changes have resulted into the reduced or limited time period of many promotional offers. Moreover the benefit of zero interest rate is available to only consumers with good credit report. Too many performances of balance transfer could make a negative impression of the consumer to his lenders, as this would obstruct them from determining whether they can make profit from the consumers or not.
In order to make zero percent credit card a success that would enable you to pay off debt more quickly, you need to exhibit a great level of personal control and financial discipline. Thus one is recommended to make us the benefits only if he/she is confident enough to evade and keep away from the abovementioned mistakes and missteps.
