0% Credit Card Deals Pitfalls

By Author: Adriana Redmon
Total Articles: 1
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Every cardholder dreams of getting a plastic with 0% interest rate. Is a credit card with 0% or very low APR just a dream? No, these deals exist. The only but of such 0% interest rate deals, 0% APR do not last forever. Look through a 0% APR credit card agreement and you will learn that you are able to enjoy low or zero interests only during an introductory period that is defined in the credit agreement, and varies from issuer to issuer. Mind, though interest-free deals do look tempting, they have some pitfalls to consider before you will sign a credit application.
If you are eager to apply for a zero APR credit card, you'll better to check your credit report first. Low interest plastics are not easy to get credit cards. 0% credit cards is a kind of privilege and only responsible and trustworthy cardholders are eligible for such deals. Your credit should be from good to excellent. You will hardly find an issuer who is ready to give an interest-free plastic to a customer who tends to overdraw or miss payments on credit.
You will ...
... hardly find a person, who can resist a temptation to apply for a 0% APR credit card. 0% interest rate attracts every card holder. It is a human nature: we are striving to get something for free. But do not get into trap: 0% APR is often just a lure.
You will avoid many financial problems, if you read every line in a credit card agreement. The ad may promise you zero interest rate, but do not neglect of checking the ongoing APR on a card. You may surprisingly discover, that the annual percentage rate on this 0% card is far from zero.
When carrying a zero APR credit card, you are not protected against default charges that may come all of a sudden. One late payment can result into pretty high interest charges and penalty fees.
0% interest rates are mostly applied to purchases and balance transfers. Everyone understands the benefits of 0% APR on purchases, but there are not so many people who know how to benefit from 0% on balance transfer.
There are lots of plastics with rewards that come with 0% APR on balance transfer. You will hardly resist the temptation to apply for such a deal. You will probably transfer your balance from a current card on a new more beneficial deal and will enjoy zero charges for the balance transfer, and will start making purchases in order to earn maximum rewards. Here is the trap! You will realize soon, that is getting tough to cope with credit debt. So remember, if you want to enjoy 0% rates for an introductory period, make sure that you realize the possible consequences.
Mind, choosing a credit card, pay attention to every detail in credit card applications. When you get a 0% APR offer, check whether this rate is for purchases or for balance transfer, or for both. If you want to apply for a balance transfer card, learn how long the introductory period is, make sure that you will be able to pay off your debt while the introductory 0% interest is valid. And check the ongoing APR in any cases: you must be sure that you will not get into deep debt after the introductory period is over because of heavy ongoing APR.

About the Author
Adriana Redmon is a financial writer. Her articles about credit cards such as low interest deals, Juniper credit card, rewards cards, cards for special needs.