Low Interest Credit Cards - What's All the Hype?

Zero interest credit cards are definitely enjoying a huge popularity in the market. And why not! The chance to use your credit card and pay your bills at no interest is surely a very attractive offer.

Have you recently received an offer for a credit card with zero interest? If so, are you thinking about signing up and enjoy free interest? The fact is, there's no reason why should not take advantage of zero interest credit cards. But before you do, make sure that you'll be making the right choice. Below are some questions and answers that should help you.

How long will the zero interest last?

Yes, the zero interest rate offer may be for real but how long will it last? Obviously, the 0% APR would not last forever. Some zero interest credit cards offer 3 to 6 months introductory period while other cards offer up 12 months or more. It's crucial that you understand exactly how long you can enjoy the zero interest rate on your card.

The rate of interest beyond the introductory period.

How much would the regular interest rate be after the o% interest rate period? Signing up for a zero interest credit card without carefully examining the exact terms can be risky. The 0% APR could suddenly change right after your first month of getting the card. It's easy to get approved but you could end up with the wrong card if you're not careful.

Where does the zero interest apply?

Most zero interest credit cards have multiple APRs. The zero interest offer may only be applicable either for your purchases or balance transfer charges.

Zero interest balance transfer credit cards are great if you want to consolidate credit card debts. But using a 0% APR balance transfer card for new purchases could offset your savings if it has a high interest for purchases.

Also, keep in mind that the APR for cash advances is always different and is often much higher than the APR for balance transfers or purchases. Avoid using your zero interest card for taking out cash from the ATM to avoid the high fees.

What about the rest of the fees?

When choosing a zero interest credit card, always do some comparisons. Examine the interest rate as well as the rest of the fees associated with the credit card.

For example, does it have an annual fee? If yes, how much would it cost you to keep your card active each year? Annual fees can range from $30 to $100 depending on the type of credit card. Some zero interest reward credit cards could have an $80 annual fee charge. If you must pay $80 yearly, is the 0% APR still worth it?

Other credit cards with 0% APR impose expensive fees like late penalty fees, over-the-limit costs, balance transfer fees, and other transaction charges. These are the costs that you want to check on before choosing a 0% APR credit card.