0% Credit Cards Here To Stay?

Interest free credit cards have always been a dream for everybody but we all know that it’s not going to happen don’t we.

But recently there has been a mini war going on between many of the large card issuers as they fight and scrap for any willing customers that are looking to apply for credit cards. With special introductory offers on the go including interest free periods that are ranging from 6 to 9 months, on balance transfers and purchases, our dream of interest free credit cards has become a reality, if only for a short time.

Basically all credit cards are interest free as long as they are paid in full at the end of the month and are paid on time, but as you probably know this is not always possible, so your card starts to incur the APR that is set on the credit card, that are usually in the region of 15% on most cards, though finding a credit card with a smaller APR is not impossible, because if you are willing to search for them, then an APR of 9% or lower can be found.

This has led to many credit card holders turning into “Rate Tarts” a term that is used to describe people who are using the special 0% deals that are being offered by card issuers, to balance transfer the cash that they owe to a card, to one that has a 0% deal attached to it and cuts out the interest payments on their existing cards, this though has to be well worked out so that you don’t lose sight of what and where you have transferred your balances too. This can also play havoc with your credit rating, which is worked out on how many loans and cards that you have applied for at any one time, so be careful.

With the competition in a battle for our business, now is the time to play the game and try and get that little bit more from your credit card, though if you take up the offer of the 0% interest deal that you have before you, make sure that the card you are about to take doesn’t have a higher interest rate, than the one you have already, if this is so and you can’t pay off the balance by the end of the introductory 0% period, then staying with your original card might be a better option, just make sure it’s the right card for you.

Still a little confused? Maybe we can help. A credit union can protect you from making the wrong choices with your money. Check out Riegelwood Credit Union to learn more.