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The words "zero percent interest" always garner attention. Everyone wants a credit card with a zero percent interest rate. What could possibly be better than borrowing money and getting to pay it back in installments, without paying interest on the amount? Unfortunately, there's more to zero interest credit cards than many people would think.
How Zero Interest Credit Cards WorkWhen a credit card is said to have an interest rate of 0%, credit card companies are talking about the introductory interest rate. Many credit card companies offer new customers a 0% APR, usually for six months to a year, to thank them for opening an account.
This can be a huge perk, especially if you have other credit cards with high interest rates. Many consumers take advantage of introductory periods by transferring the balances of other cards into the new account. While you will be subject to balance transfer fees, the savings may be worth the additional cost if you are paying a lot of interest each month.
Unfortunately, a 0% introductory APR can also blind consumers to the negative aspects of their new credit card. Many people see the 0% interest rate and fail to notice that this rate will skyrocket after the introductory period is over. While zero interest credit cards can be great during the introductory period, if the APR isn't going to stay low, the card may not be a good choice over the long term. Consumers also need to consider the card's annual fees, late fees, and whether the card offers a rewards program.
How to Avoid Getting Sucked in by a Low Introductory APRThe only way to avoid getting sucked in by a 0% introductory APR is to find out what you're getting yourself into. Before accepting the card, determine what your interest rate is going to be after the introductory period is over. Also determine what fees you will be expected to pay to maintain the account. A high annual fee may cancel out any savings incurred during the introductory period.
It's also important to avoid accumulating a large balance just because you aren't paying interest. Once your introductory period is over, you'll have to begin paying interest on any remaining balance. If the balance is high, this may significantly affect your monthly payment.
If zero interest credit cards are used strategically, they can be hugely beneficial. For example, an introductory period is a great time to make a large purchase, as long as you can afford to pay it off before the period ends. Unfortunately, unless you do your homework, you may end up with a credit card that costs you more than it's worth.
What else can I help you with?
What are the pitfalls of 0 interest credit cards?
The first thing to know is that most credit card companies that offer 0 interest credit cards are trying to sell a product. It is important to know what the interest is for a credit card that says there is 0 interest for a year after that year is up. Most interests skyrocket after that first year when people have already built up their debt.
what is the rate on fleet cards?
The thing about any credit card is that the interest rate is based off of your credit score. So the only way to know for sure what your interest rate would be is to apply for the card and see what happens. Good luck!
Where can you compare credit cards?
The best place to go to compare credit cards is your local bank. Credit card companies are more interested in your money than telling you about their superior competitors. Your bank can tell you what you need to know, and they have a vested interest in making sure you keep as much of your money as possible.
Does Six Flags take credit cards?
I know that they take debit cards.
What to Take Into Account When Doing a Rate Comparison?
Most consumers know to compare interest rates before choosing to apply for a credit card or a loan. One of the problems millions of consumers face is trying to pay credit card bills at high rates of interest. Because of this, there is much talk about interest rates. However, when performing a rate comparison, consumers should look closely to ensure they are making a fair comparison among credit cards or loans. For example, many consumers compare the rates of interest between credit cards before doing a balance transfer. On the surface, it may make more sense to transfer your balance to the card that boasts the lowest interest rate. However, upon closer inspection, you may learn that the advertised low interest rate is for new purchases only and that the rate of interest that applies to the balance transfer is actually higher than you are currently paying. Unfortunately, this has happened to many consumers who did not read the fine print before authorizing a balance transfer. Rate comparisons involve much more than credit cards. Consider how a home equity loan is financed. While most of these loans are based on a variable rate of interest, some lenders do make home equity loans with a fixed interest rate. The difference between the two methods of figuring interest can be significant, so it pays to shop around and compare rates before obtaining any kind of credit. Another important thing to look at when you are comparing interest rates is what type of fees the credit carries and how much they run. For example, you may find a credit card with an attractive interest rate but it may have an application fee, an annual fee, over-the-limit fees, and late fees. While some of these charges are standard, make sure you are aware of all of the fees associated with any type of credit you obtain. Otherwise, your attractive rate of interest may not be so attractive. The same is true when you obtain other types of credit, such as loans. Look at each fee and compare the amount among lenders so that when you obtain the loan, not only will you have a low interest rate, but the total amount the credit will cost you is reasonable as well.
Can I use prepaid credit cards just like traditional credit cards?
Prepaid credit cards work exactly like the traditional unsecured credit cards. Make sure that you know what your credit limit is. Your credit limit will be what you send into them. You can use them just like a credit or debit card to get hotel rooms, gas, or whatever else you may need.
What financial exchange involves credit cards?
I doint know?
Can you reload prepaid credit cards with credit cards?
There is no such thing as a prepaid credit card. There are secured credit cards and prepaid DEBIT cards. yes because if you pre-pay it can be called 'credit' other than that both cards provides the exact same facility. for you question. yes its possible to topup your 'prepaid credit card' with another credit card or using a bank account. however it all depends on whether your bank/credit card company supports such facility. refer to the link provided to know more about 'prepaid credit cards' available and different services provided by them.
Apply for credit cards?
Hi, I know it is not easy getting your own credit card.. butfortunatley I got one for myself through Credit Nation, the online market place where you can compare loans, interest rates offered by various banks.. I never thought getting a credit card would be so easy.. Really, I want to thank credit nation for their services..
What are the different ways to apply for credit cards?
There are many ways to apply for credit cards. If you aren't getting credit card applications in the mail, it may be difficult for one to know how to get a credit card and how to know which ones are out there. The best solution is to go to contact a credit card firm directly over the phone and discuss creating an account with them.
What is one of the main things that the fair credit reporting act does to protect consumers?
The Fair Credit Reporting Act protects the consumer by limiting access to credit reports to those who have a legitimate business reason. Consumers also have the right under the Fair Credit Reporting Act to know what is in their credit files.
What credit cards does Moneris Solutions process?
We process all major credit cards including Visa, MasterCard and AMEX. If you have any more questions let me know at webmarketing@moneris.com
