subject: Zero Interest Credit Card Offers and What You Should Know About Them [print this page] Zero Interest Credit Card Offers and What You Should Know About Them
As interest levels are again going down, the amount of zero interest credit card offers which are being advertised are starting to increase. In the event that you've received information on such an offer, benefiting from getting interest free credit lines can be attractive.
Simply by understanding what these special offers generally entail, you'll be able to make a much more informed decision about whether or not these are appropriate for you. For many, this can be a good way to make a sizeable purchase without having to use personal savings. For other people, these cards are much less helpful and can really work to get them much deeper in debt.
Each and every time you are given a deal from a credit supplier, including those offering zero interest credit card offers, it's important to study the fine print. Just getting a solicitation does not always mean you will qualify to obtain this offer. In reality, these promotional interest rates are typically given just to people with the best credit rankings.
Those people having a much less than ideal credit rating may discover that their application for the card is accepted, but that the rate that they're given is significantly higher than what they anticipated. Before you apply, ask for a copy of your credit report and look into whether your score is in line with that which is expected for this special offer.
Recognize that this very low interest rate won't be valid throughout the life of the credit card. In many cases, this period of reduced interest will last for a couple of years Immediately after that time, any balance you are carrying is going to be subject to a fixed interest rate that's a lot higher than this introductory one.
This isn't really a negative factor, and for people that want to make a big purchase that they are confident they will pay off within a year, it might be the perfect way to gain access to the credit that they will need. On the other hand, it is important not to count on this cost continuing, since you will likely see interest expenses included in the future.
For any account balances that remain at the end of the promotional period, credit card holders may be expected to retroactively pay for the interest they will have accrued. This is the fine print item that is most commonly ignored by people that submit an application for these offers. If you're getting close to the conclusion of the interest free period, it is best to make a concerted attempt to pay the card down to a $0 balance. That will mean that the credit you were issued was genuinely interest free and that you aren't responsible for having to pay interest over the final year.
Zero interest credit card offers are generally a good way for people with very good credit to make some big purchases that they are going to pay off quickly without becoming subject to any fees.
