It is typical for a credit card company to advertise zero percent or interest free credit card. Some regard this offer as too good to be true, but at the same time it sparks their curiosity to find out whether this advertisement is real as it sounds.
An interest free credit card started making noise in the early 80s. It is during this era that interest free cards were introduced. This kind of credit card is actually a trick since there is no such thing as an interest free credit card. As you all know, a cards’ lifeblood and existence is entirely dependent on interests charged to users. Some cards can waive interest fees, but only during introductory period. This period usually range from 3 to 6 months.
Advertisements are always superfluous to attract the public to various offers. You should always be cautious of the underlying catch of these advertisements. Many credit card companies do not reveal that this interest free period will only last for some time. Meaning, if you subscribe, you will be tied to their terms and conditions even after this interest free period.
It is essential to read and understand terms and conditions before deciding to sign up for a credit card. Cards have hidden fees and charges that they would choose not to discuss with you until you have subscribed to them. In addition, there are provisions in the contract which if violated can lead to the maximum escalation of your Annual Percentage Rate or APR.
To avoid being a victim of superfluous advertisements of cards, know whether a 0% APR applies to purchases only. Also find out whether the same applies to balance transfers. If the card you are holding has a balance transfer feature, this is important to know. It is also important that you know the fees charged for transferring credit card balances to this card since most companies charge a percentage of the transferred balance. It is also advisable to know whether you can switch to other credit cards when an interest free period is over and whether there are corresponding fees to pay off balances. It would also be wise to know regular interest rates when the interest free period is over. This way you can tell whether or not it is a good decision to push through with your credit card application.
Other things to consider include annual fees, rate of minimum payment, and most importantly, the terms and conditions for the use of your card.
Always use your credit card to your advantage. Be wiser than your interest free credit card.