| 0cards.com |
The 0% interest credit card offers are usually for a period of a few months to a year or even more. Since most of these cards are also balance-transfer cards, an offer like this can end up saving you a great deal of money, particularly if your goal is to pay it off.
But goals can be like New Year Resolutions .. and what if you can't pay it off when the 0% interest period has expired! Has a low fixed rate been included with the 0% offer? Or will you be paying Prime plus "Whatever" percent?
Sometimes you'll be given the choice of 0% interest for a certain length of time or extremely low interest, such as 3.99% or even less, for the life of the loan, which could be your own lifetime if you'll be making minimum payments. The difference between these choices is that by accepting the low interest offer right off the bat, more of your monthly payments will be going toward the principal of the loan, year after year, instead of being eaten up by interest when that wonderful Zero Percent Offer has expired.
Know The Interest Rate
When you're offered an initial interest rate that is quite low, sometimes even 0%, for a designated period of time check to see whether this rate applies to both transferred balances and new purchases. What you need to know is what happens after the introductory phase has ended. Will the interest then skyrocket? Will the interest rate be more moderate as long as you have a good payment history? Look for hidden costs such as an annual fee or a cash advance fee. These are important to know if you plan on using your card effectively..
Do a little research and decide what type of card will best fit your needs before you accept an offer or apply. Don't go over board though - new applications will show up on your credit report and negatively affect your score.