Tight competition among industry players has forced financial companies to offer credit cards with zero APR [annual percentage rate] so they can win more customers. Because of this, getting cards that charge interests–sometimes as high as 13 percent–is no longer wise.

However, having credits cards with zero APR does not mean a holder would not be paying interest at all. Zero interest only holds true if a customer pays his obligations on or before the due date. Late payments are already charged interest, so the longer the delay of payment, the higher interest one must pay. Discipline in payment is thus necessary to take advantage of interest-free service.

Customers should carefully read the terms of service stipulated in using a card, and making sure they do not pay more than what they expect. Many companies that offer credit cards with zero APR compensate for their business by charging high fees, including those for membership and transfer of balances from other credit cards. These fees are often outlined in small print under the terms-and-conditions document.

Other companies take a different approach; they make a no-interest service valid for only a certain period of time. If such is the case, a customer must be aware of it so that he can avoid being caught off guard when he is charged with interest later on. Most companies resort to deception by putting important details about fees and interests in fine print, making it easy for customers to overlook them. These companies know that there are customers who are easily lured in getting a card once they find out that the company charges no interest.

Since there are a lot of financial companies around, an individual must compare each of their services and their terms before they apply. This is important in order to get the best deal possible. Even two companies that both offer credit cards with zero APR may still have differences in their terms and conditions. An instance like this requires keen observation from consumers.

Education about the product is necessary to avoid unexpected expenses in the future. It also prevents the consumer from being burdened with huge debts. There are a lot of people who are now suffering from mounting credit card debts. Most of the time these were caused by a lack of understanding with the terms and conditions stipulated in the use of their cards.

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