Information Center – News and Articles about Credit Cards
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Credit Cards with 0% Promotional Period: Pitfalls
Credit cards with low interest rates are not less popular than card offers with cash back, miles and rewards points. 0% APR plastic is the dream of every credit card holder. But alas and alack! There are no credit products with 0% interest rate for the life of an account. However, you have a chance to get a credit card that will give you time to use it without accruing interest charges.
These are the deals with 0% introductory APR. But as you know, good things come in small packages. And your interest-free period will be over in a wink. But though 0% intro APR is a great option, you need to be careful with such offers.
If you want to get a credit card with no-interest period you are to check your credit report and score first. If your credit allows you to qualify for excellent or good credit cards, you will be eligible for a credit card that comes with 0% promotional period. This feature is considered to be a special privilege for credit consumers, and you can get it only if you prove a lender to be a responsible and trustworthy card user.
So, you became a lucky owner of credit card with 0% intro APR. You can enjoy using your plastic and paying back only actual amount of money you have borrowed and spent. The length of your intro period is stipulated by your credit card agreement and depends on a creditor. As a rule, it lasts from 5 to 18 months.
But be careful, do not get into traps that you can come across using a credit card with zero intro interest.
First of all, make sure that you know the date when your introductory period is over, so you can adapt to new terms and have your credit card spending under control.
Find out the ongoing APR that will change your teaser rate. Do not fall for this tempting 0% intro APR straight away. Otherwise, you can be completely taken by surprise after your no fee credit card, for instance, with 0% intro interest rate turns into a plastic with some 17% APR, having which is just a sacrilege for a card holder with a good credit history.
Remember, during your promotional interest-free period you are not safe from penalty fees and default rates that can appear out of the blue. Once you happen to make a late payment, or miss a payment, you will wave a farewell to your 0% rate.
If you want a credit card that will help you to save money on purchases, make sure you are getting a plastic with 0% intro interest on purchases. Some rewards credit cards come with 0% APR on balance transfers. Such a card will be beneficial for you when you transfer a balance on your new credit card. But at the point of saving on spending it will be just useless. But you can find an offer that combines both - 0% intro rate on purchases and on balance transfers. This will be double profit for you.
I would by no means prevent you from applying for credit cards with 0% intro interest rate. This feature is really one of the best windfalls for credit consumers and makes saving with credit cards easy. Just pay attention to the pitfalls you can come across using your credit card with 0% intro APR.
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The XXI century is the century of high-speed and nanotechnologies. It seems people strive to speed up all processes to make this already hectic and sometimes chaotic rhythm of life even crazier. They are ready to shrink everything they can lay hands on to make nanotechnologies work. In fact people just want to make their life more convenient.
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The appearance of credit cards dates back to the beginning of the XX century. Who were they created for? The target audience was wealthy people. The cards could be used as business certificates and licenses for the so-called "loyalty programs" at some restaurants, gas stations and merchants. Those cards, you can be surprised, were made of cardboard.
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Credit bureaus cannot stay indifferent to the problem of credit fraud and identity theft, in particular. Equifax, one of the three US major credit bureaus has introduced a new ID theft protection service. "ID Patrol" is a multifunctional tool that allows protecting customers from identity theft.
