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One of the biggest obstacles concerning a zero interest credit card is that many people won't even qualify. Prior to issuing a zero interest rate card, the credit card company with perform an extensive credit check. Regardless of the number of zero percent offers you receive in the mail, you won't obtain a zero interest credit card if you don't qualify and a credit card company will not give you one if your credit score is too low, or you owe too much on the cards that you have. So you may apply for a zero-percent deal and get a card with a higher teaser rate or no teaser rate at all, depending on your credit. As with any rock-bottom interest rate offer, you'll need good if not excellent credit to qualify.
Also, if you intend to use the card only for the introductory period and then pay it off, (which is the whole idea in the first place, normally) that's fine. If, however, you are a person that does that consistently, chances are you will not be granted a zero interest credit card. One look at your credit report will tell a credit card company if you fall into this category.
A zero-percent introductory rate on a credit card can be very appealing but you need to be aware of the pitfalls. Once you have opted to receive a zero percent rate, it is absolutely essential that you meet each payment on time. One late payment could negate your zero percent and replace it with an unmanageable rate.
If you do decide to apply for a zero interest credit card, make sure that you read the fine print before you submit the application. Check to see if it applies to balance transfers only. If so, you might have to pay off the entire balance transfer before a single penny gets directed to any new purchases you've made with the card.
If you are transferring a balance to your zero interest credit card, be aware that there might be a fee to do so. Some zero interest credit cards charge you a fee for every balance you transfer to the card. |
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