0 Credit Cards

0 Credit cards are simply credit cards that offer 0% interest for an introductory period of between 6 to 12 months, sometimes longer if you are lucky. Generally these types of cards are used to transfer high interest debt to low interest debt, and in that way, pay off the debt a lot faster, instead of paying the      continual interest.

Some credit cards do offer 0% on new purchases or even cash advances. One must always be wary of the terms and conditions of any credit card offer you take on. Sometimes a person may apply for a specific card and be issued such card without realizing that it offers 0% interest on balance transfers only, and then they experience the problem of paying back the interest with the debt  .

There are cases where people have been issued a credit card that offered 0% interest on balance transfers, and when they made the transfer, they had a large sum of money to be paid. This is why it is vital to read the terms and conditions before you sign and check them out again once you receive the card.

In today’s society it is very easily to live off credit, but very difficult to get rid of the outstanding debt. Often the debt we have is held at a very high interest rate which means that each month we are continually paying back loads of interest and very little of the debt gets paid off. The one solution to this problem is to opt for a 0% credit card.

It is of utmost importance that you realize that these cards offer 0% interest on balance transfers, or new purchases, or cash advances, but rarely all three. There are people who have been caught out by this and have made new purchases under the assumption that they would also be at 0% interest. It is hard to learn things the hard way. I cannot stress this more, read the terms and conditions!

The 0% interest introductory period is exactly that, meaning that for a certain period of time, you will either pay 0% interest on your balance transfer, new purchases, or a cash advance. Generally this period is between 6 and 12 months. There are some credit card companies that offer 0% only for 3 to 6 months, while others offer it up to 15 months. It often depends on your credit score. For example, if you have a poor credit score because you are unable to make payments on time each month, chances are you will not qualify for 0% interest for 12 months. It may be a shorter period of time, or maybe the interest you get is higher than 0%.

A point to note when looking for 0% credit cards is that you need to check on a number of things in the offer. Firstly, how long is the 0% interest period going to last, and what is the APR (annual percentage rate) once that period is over? Also check out what the annual card fee is. If you are going for 0% interest, then you should try to get a card that offers no annual fee. Another thing to remember is that if you make a late payment, the benefits you enjoy of the card (0% interest), will fall away immediately, and you’ll be charged a hefty interest rate.

People are often sceptical about taking on a new credit card when they have outstanding debt, but if you want to pay off the debt much faster, then 0% credit cards are definitely the way to go. Another reason for taking on such a card is to use it for a cash advance, which you then pay back at 0%. Obviously there is also the “need” people have for making new purchases.

If you are going to use your new credit card for a balance transfer, then use it just for that. Don’t make new purchases! You will only get yourself caught up in more debt.

People seem to have the wrong idea about credit cards. They can be good, if used in the right way. All too often we use them to live off the credit they offer. We need to be careful with our money and use credit cards wisely. Managing finances is not always easy, but a little bit of restraint and diligence is all that is needed.