Zero Interest Credit Card
The dream of any individual or business is to be able to someone else’s money at zero percent interest. Believe it or not, there is such a thing as a zero percent interest credit card. In order to attract new customers, several card issuers are offering zero percent interest for an initial period of time.
Careful research on this topic will reveal a number of cards that offer zero percent interest for a variety of purposes. Some offer this no-interest option for balance transfers in hopes that you’ll transfer existing card balances that are being charged high interest rates to this card. Your intent in transferring the balance is that you’ll pay the amount off before interest become applicable again in six or twelve months. The banks know that most of us who do this will not pay off our balances before the no-interest time runs out.
Some card companies issue no-interest cards that offer six months interest free on purchases but they may or may not have an annual fee for acquiring the card. There are many options to be considered, but one of the more significant areas to investigate is what happens once the introductory period is over. The interest rates and annual fees beyond the first year can be a shock to the unsuspecting cardholder.
Just because a card is a Visa or MasterCard doesn’t mean the rules are all the same. Every card issuer makes their own rules about the cards they issue. They also administer those rules in varying ways. Some are very strict about a payment not being credited on the day it was due and therefore are quick to apply late fee penalties. Visa and MasterCard are both associations rather than corporate entities that ensure the consistent application of standard rules across all the issuers.
The net result is that your zero interest credit card from one issuer may feel very different if acquired from another issuer. We have all fallen victim to the issuers who seem to be poised and ever vigilant looking to pounce on someone who has not lived up to the stated rules of the card.
Do your research, talk with others, talk with the card companies, but above all, live within your means and use your credit limits responsibly.
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