Can a credit card deal really mean free money?

June 07, 2007

There are many credit card deals out there with 0% APR and 0% balance transfer fee that are great deals. The amount of new credit card deals out in the market today far surpass times past and you can cash in with great opportunities and rewards programs like never before. For the first time using your credit card feels like you are using free money! Credit card companies have become very competitive when it comes to giving customers the best deals and if you compare credit card deals you, the card holder, can come out on top! While there are a lot of great lower interest credit cards, you can face some pretty severe penalties if you pay late or abuse your credit limit. These costly mistakes can cost you not only cash out of your wallet but your excellent credit history as well!

When you apply for a credit card, make sure that you are well aware of the programs, fine print and all the stipulations you will face. Credit card companies make money through these low APR credit cards by having very expensive fees for those who don’t stay within the limitations set for them.

You will only qualify for a credit card deal with low interest if you have a good credit history and a credit score that is reasonable. No matter how great a credit you may have you should still be aware of these fees and stipulations:

• Late fees! Many people fall prey to late fees because life happens and a credit card bill isn’t always the first thing in mind. If you currently have a low interest rate credit card and you pay late, just one time, you may soon be facing a 20% credit card! Make sure you know your card’s policies when it comes to late fees so that you don’t face a huge surprise bill when you open your statement.

• Balance transfer fees! Many 0% APR cards come with 0% balance transfer fees as well but you can’t just assume this is the case. Make sure you know what your interest rate will be if you transfer your balance from an old card onto the newer lower interest credit card. If the rate is too high then don’t do it!

• Introductory rate! There is no such thing as a zero percent credit card for life. Every 0% credit card comes with an intro period for how long the low rate goes for. Usually it will be between 6 and 15 months. If you are unsure, you risk being hit with a surprise bill one month!

• New purchases! Some 0% credit cards are only for transferred balances and not for new purchases. You want a zero percent credit card for both. If you read your credit card application carefully you will find out if your prospective card fits these criteria or not.

In conclusion, you want a zero percent credit card that works best for you. If you are undisciplined in your spending and paying then a lower rate interest card may not be the best choice for you. However, if you are willing to take the time and to pay your bills on time and watch for surprises then a 0% interest rate credit card could save you literally hundreds of dollars! It all comes down to reading the fine print in your credit card application. The more you know about the hidden charges that are applied to your card the better chance you will stay out of financial trouble. Taking care of your credit includes not falling victim to the wrong credit cards!