subject: What You Need To Know About Zero Interest Credit Card Offers [print this page] What You Need To Know About Zero Interest Credit Card Offers
If you have received information on such an offer, taking advantage of getting interest free credit lines can be tempting.
By understanding what these offers often entail, you can make a more informed decision about whether or not they are right for you. For some, this is a great way to make a large purchase without dipping into savings. For others, these cards are less helpful and can actually serve to get them deeper in debt.
Every time you receive an offer from a credit company, including those featuring zero interest credit card offers, it is important to read the fine print. Simply receiving a solicitation does not always mean that you will qualify to receive this offer. In fact, these promotional rates are often extended only to those with the highest credit scores.
Those with a less than perfect credit rating may find that their application for the card is approved, but that the rate that they are offered is far higher than that which they expected. Before you apply, request a copy of your credit report and consider whether your score is in line with that which is required for this special offer.
Understand that this low interest rate will not be valid throughout the life of the card. In most cases, this period of low interest will last for a year or two. After that time, any balance that you are carrying will be subject to a fixed rate that is significantly higher than this initial one.
This is not necessarily a bad thing, and for those who would like to make a large purchase that they are confident they will pay off within a year, it can be the best way to gain access to the credit that they need. However, it is important not to count on this rate continuing, as you will likely see interest payments added in the future.
For any balances that remain at the end of the promotional period, card holders may be required to retroactively pay the interest they would have accrued. This is the fine print item that is most often overlooked by those who apply for these offers. If you are nearing the end of your interest free period, you should make a concerted effort to pay the card down to a $0 balance. This will mean that the credit you were issued was truly interest free and that you are not responsible for paying interest over the last year.
Zero interest credit card offers are a great way for those with good credit to make some large purchases that they will pay off quickly without being subject to any fees.
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