0 Interest Credit Card
Is a 0 Interest Credit Card Possible?
To say it is a jungle in the credit card market is a understatement to say the least. Predatory lenders are making it more difficult by the day to find the best credit card or bank loan and the number of choices is growing leaps and bounds by the day. So what is the average consumer to do? 0 Interest Credit Cards are one of the major markets in the industry but is a misnomer for the most part, as what your are getting is a temporary reprieve on interest. There is literally no such thing as a true 0 interest credit card. Let us explain….
The credit card industry survives and thrives on debt, plain and simple. And they make there money on the interest paid on debt, so if there is no interest there is no profit, and if a corporation cant make profit they will dry up faster then free beer at Oktoberfest…
But, just as they have their games, consumers can come up with and play there own credit games. Let’s take a look at what 0 interest credit cards really are and how to use them.
These credit cards give a limited interest free time period that usually comes upon a balance transfer from another high interest credit card, giving you some breathing space to catch up on your bills. The time span varies greatly and this is where you need to do some research, some companies offer 3 months, 6 months and some even up to 12 months of 0 interest on balance transfers. And, if you are saddled with heavy credit card debt some of these offers can be a Godsend if you utilize them to their full potential, which sadly, most people do not.
The smart move here is to find a card with the longest possible terms, transfer your debt to that card and take the full interest payment that you were making on the [previous card and apply the full payment to the principle on the 0 interest card. It is truly amazing how fast the balance will pay down when you are not saddled with interest. Do not make the mistake most people make and spend that money on other crap, take a positive step and clear up the mounting debt with a decent 0 interest credit card.
Some Caveats: Be extremely cautious of the fine print. If you miss or are even a few days late on a payment on one of these cards it is entirely possible to lose your 0 interest on that card. Credit card companies look for any reason no matter how miniscule to get you back on the debt wagon and if you miss a payment your interest rate will pop back up and you are no better off then you were in the beginning. Read the fine print in regard to interest rate AFTER the initial 0 interest period. Some credit card companies make up for that period with exorbitant interest rates, anywhere for 12-19% which is absurd in this competitive market.
And if per chance you are stung wit a high interest rate after the trial period then by all means go ahead and play their game. Switch to another 0 interest credit card. And you can literally play this game forever, but remember to pay down the debt or it becomes simply that…a game.
