What you should know about zero percent interest credit cards

| November 28, 2011 | 0 Comments
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If you are planning to apply for personal credit cards, the zero percent interest credit cards would always be the best option for you. Mainly due to the fact that there are several companies offering various types of cards, most providers are beginning to see the need to offer their numerous consumers 0% interest credit cards in order to draw more customers. However, it is necessary you know that this offer usually benefits you within the promotional period of Annual Percentage Rate (APR) which lasts for a period of twelve to fifteen months.

With the zero percent interest credit cards, within the promotional period, every purchase or transaction you make with your credit card has zero percent rates on your card. Although, as soon as the promotional period expires, the credit card company resumes its normal Annual Percentage Rate and by then, you would no longer see the 0% interest credit cards as the best deal you had within the promotional time period. It would also interest you to know that while you are making use of these credit cards with zero percent interest rate, a little percentage is charged each time you have a balance transfer.

Why is this so? It stems mainly from the fact that it is one of the known ways through which companies offering zero percent interest credit cards to consumers make good profit. The percentage is charged since balance transfers are also seen as cash transfer by these companies. You might not know this and quiet a few persons do know that in most cases, their payments through their 0% interest credit cards may not always be applied the way they expect it to. With this, the interest accumulating debt that is paid off before others is the least. After this, the transactions that accrue more interest are then paid off and an example of this is the balance transfer.

Based on this, it is advised that in order to gain more of the benefits associated with zero percent interest credit cards, you should try to clear up or even move your balance within the promotional period since any thing more than this would lead to payment of percentages upon balance transfer.

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Category: Bad Credit Score Credit Cards, Blog, Credit Cards

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