Zero Percent Credit Cards

With so many credit cards having a high APR (annual percentage rate) it’s little wonder that savvy consumers will hunt out credit cards that offer a 0% deal.

Nonetheless, are 0% credit cards all they are cracked up to be? There always seems to be one catch or another attached by way of conditions and it is these that you need to look out for!

Choosing a credit card that will be right for you can be a minefield! With literally hundreds available on the market, you need to have your wits about you and read all of their small print. Countless people have ignored the small print at their peril and had to suffer the consequences of their actions!

What you need to remember is that this rate will not exist indefinitely and after whatever period of time stipulated in the credit card companies terms and conditions, they will start charging you higher rates of interest. Some of the credit card providers charge what can only be described as “extortionate” rates. 

In the past, many people took advantage of the opportunity to switch from one credit card to another, transferring their current credit card balance so that they can enjoy a 0% interest rate for longer. Consequently, this has cost the credit card providers hundreds of thousands of pounds in lost interest.

Credit card companies are now wise to this process and have employed strategies to ensure that they do not lose out financially as they have done in the past. Many credit card companies now charge anything up to three percent or even higher in some cases - in fees.

With some credit cards, there is no cap on the balance transfer fee, meaning that credit card holders could well find themselves having to pay a hefty bill to the card providers immediately on balance transfer. However, there are some credit card companies that offer a transfer for free.

The duration of the zero interest periods can vary - anything from three months to fifteen months. Some credit card companies will require a minimum spend in the first few months and if you are transferring from another credit card to take advantage of a zero percent card you may have to pay a transfer fee.

When seeking a zero percent credit card, you really need to read up on the terms and conditions attached to each credit card in order for you to gain the most benefit that is advantageous to you and not just the credit card company!

Several credit card companies offer 0 percent on purchases (some up to nine months) whilst combining 0% interest rates on balance transfer in addition. Many credit card providers offer other incentives such as: free air miles, cash backs and other rewards.

The upshot is - proceed with caution, because although zero percent credit cards definitely can have their advantages, certain credit cards may not be suitable for your own personal financial circumstances. Do plenty of research to enable you to make an informed decision that will suit you best on which credit card to apply for.