Truth About Zero Percent Interest Credit Cards

There are a number of proven strategies for reducing unnecessary consumer debts. On the other hand, these tactics are not without a price. Sorry to say, but high finance fees and annual interest rate increases keep millions of consumers buried in debt.

If you want a quick method for doing away with uncalled for credit card debts, apply for a zero percent interest balance transfer credit card. Credit cards with zero percent interest are both useful and risky. Prior to applying for an introductory 0% interest credit card offer, read the fine print, and know the terms.

Advantages of a Low or No-Interest Introductory Rate: Fully paying off the balance on a credit card is just about impossible without a lump sum of money. If you settle on paying just the minimum payment, the credit card balance will never decrease.

Fortunately, there is a better way to handle credit card debt. Attempt to obtain a zero percent interest balance transfer. If approved for an introductory offer, the credit card company will not charge interest for a specified number of months.

To qualify for a zero percent interest credit card, good credit is a plus. The credit card balance will not incur interest, and debt can be eliminated quicker by paying double or triple the minimum payment and avoiding additional charges.

Disadvantages of Zero Percent Interest Credit Cards: The bulk of zero percent interest credit cards have restrictions. In other words, zero percent only applies to balance transfers. If you choose to use the credit card for shopping or other expenses, these charges will incur daily interest.

Introductory rates on 0% interest credit cards are not permanent. Moreover, consumers must abide by certain guidelines to continue taking advantage of a zero percent interest credit card.

Credit card companies have the authority to increase and decrease credit card rates at their leisure. To benefit the most from a low or no interest introductory credit card offer, it is imperative to submit timely payments – on all your credit accounts. Therefore, if you have additional credit accounts with separate credit card companies, your payment history with these creditors will determine your eligibility with the creditor offering 0% interest.

Missing a single payment or making a late payment on any credit account will void the zero percent interest agreement. If this occurs, the credit card issuer may charge an excessive interest rate for the remaining balance.