Zero Interest Credit Cards

At a time when credit cards are burning a hole in our pockets, zero interest credit cards have come as a blessing in disguise for many. They are enjoying a huge popularity in the market today. Especially to those who pay their bills on time, a zero interest credit card is a very attractive offer which should be grabbed without a second thought. However there are certain things that need to be taken into consideration when you apply for such a card:

Though zero interest on a credit card sounds very interesting and attractive, we also need to know if there are any others charges levied on these cards such as the annual percentage rate, interest rate after the introductory period etc. Normally most of the credit cards carry an annual fee of $50 to $80 a year, anything more than that will not be worth it as it will take away all the savings you get from the free interest.

Some of the interest free credit cards impose more than one annual percentage rate i.e. they interest charged on the balance transfers is different from the interest charged on the purchases. Some of the credit card companies would offer a zero interest on balance transfers but would unreasonably charge you high on purchases. So it’s advisable to have detailed information about it.

Check the interest rate beyond the introductory period. It would be too risky if you don’t examine the terms and conditions of the card as few of the cards would carry the zero percent offer for just one month while the other for 3 months, 6 months or up to a year. So do take into consideration the time the offer would be valid up to. It is also important to know the rate of interest applied after the scheme is over. Will it still be a good choice to carry on with the same card or will you end up with higher interest credit card than the credit card you acquire today?

Apart from these there are also certain other points that should be noted before signing for a credit card with zero interest such as grace period offered after the introductory period to pay off the amount, the credit requirements of the card you chose, the type of APR offered, checking the other costs linked with your card and so on. Once all of this is taken care of then you can enjoy the benefits of the zero interest credit cards.