Some credit cards have flexible payment options. There are even some credit cards with no payment options, or credit card with no annual fee payment. But consumers should be careful when it comes to using credit cards with no payment options.
In most cases, credit card no payment options are short-term. In nearly all instances, they are introductory. The idea behind the credit card no payment option is to get the new credit card user to begin using their card as soon as they get it and use it heavily for three to six months, then starting charging the consumer interest—in some cases, rather exorbitant amounts of interest—at the end of the credit card no payment period.
Credit card no payment options have become more difficult to find than they were a number of years ago, when they were frequently offered to credit card users. After the credit crisis of the last several years, credit card companies are far more selective in who they offer the credit card no payment option to. Some customers were applying for credit cards with the no payment option on them and promptly defaulting on the cards once the payments needed to be made, which has made credit card companies more wary of making such offers.
Another credit card no payment option has to do with annual fees. Some credit cards, like American Express cards, all charge an annual fee to users as part of their regular service agreements. These annual fees can be a source of considerable annoyance to cardholders who don’t use their cards, then suddenly get hit with a charge anywhere from $79 to $500 when they are not expecting it.
It is important to note that credit card no payment options are set at the discretion of the credit card companies and nearly none of them will give their customers an option to take a month off from making payments if they get into financial problems. Skipping a payment can be a problem for the relationship with the credit card company and the user’s credit history, so making the minimum payments, though it may be difficult, is a smart move for the future.