The Truth About 0% APR Credit cards
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The Truth About 0% APR Credit Cards
by Morgan Hamilton
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While it is illegal for a credit card company not to disclose all fees and charges for their credit card, it is not illegal for them to put it in small print. Credit card companies are aware that many consumers do not even bother reading these paragraphs so they stick the truth about 0% APR deals in there. They make sure they announce in large, bold print that the card has 0% APR.
This is very appealing because it is the APR or interest rates that often cause consumers to have credit card problems, so no interest seems like a great deal. Hidden in that small print, though, you will often find out that this is for a limited time or only applies to new purchases, not balance transfers. Once the limited time is up the APR usually sky rockets to a huge rate.
Even worse, some consumers transfer balances thinking they will get a
nice break from interest and be able to pay the balance down quick, only to
find out the offer does not apply to the amount they transfer. Reading all
the information provided with an offer is extremely important to avoid such
problems.
There are other tricks to the 0% APR offer, too. Some cards
offer 0% APR on balance transfers, but once that is paid off the APR goes
up. The trick here is that any money you pay is applied to the transfer
first so it is paid down quicker. Any other purchases you make are charged a
high APR. Some credit card companies make up for the 0% APR by charging high
annual fees or other high rate charges or they add a transfer fee charge.
Many 0% APR deals are voided if you are late on a payment. Some companies
have lowered the grace period which makes it easier to be late on a payment.
Another quick trick is sending you a different card then the one you applied
for and not offering the 0% APR on that card at all. Often in the small
print on your application it will state the company can do this if you do
not qualify for the card being offered. These are some ways the credit card
companies can get out of the 0% APR offer.
The truth about 0% APR
credit card offer is not as great as it may seem.
Avoiding this trap is easy if you know where to look for the catches and
exceptions. It is all up to you to weed out the good offers from the bad
ones. Read everything before signing up for a credit card and should be able
to avoid any problems.
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards. Get the information you are seeking now by visiting 0% APR Credit Cards
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