Credit cards offering a 0% interest rate often lure consumers in with zero interest, instant approval and easy online balance transfers, but beware of the number one factor that will void your 0% easy street annual percentage rate and throw you out into the poor house fast.
Banks and financial institutions know the spending habits of consumers and understand that most people max out their credit cards around the holidays. They wisely take advantage of this fact and start flooding your inbox and snail-mail box with hundreds of 0 APR credit card offers soon after the holiday season ends. Knowing that if you are like 98% of the American public, you’ll jump at the chance to consolidate credit card debt and transfer balances to 0 APR credit cards.
But don’t fill out that online credit card application too fast, there are a couple of money saving details you need to be aware of before you apply and transfer your balances over to 0 APR credit cards.
Credit card companies are banking on the fact that you will never read the fine print at the bottom of the 0 APR credit cards terms of service agreement. There are two very important details down there that need to be brought to your attention before you sign on the dotted line.
Most importantly is the fact that if you make just one payment late your introductory 0% APR is revoked and you’ll automatically be required to pay the full annual percentage rate. Credit card companies are banking of the fact that you never know this fact till its too late, so please read the fine print before accepting any 0% APR balance transfer credit card offers.
The second detail is that could either help you out of credit card debt or sink you even deeper into debt is the fact that the 0% APR is only an introductory offer by the credit card company. It applies for a short, limited time only, then interest rates on your credit card goes up to the usual high rate.
The amount of time the company offers the low 0 APR credit card varies from 6 months to as much as 18 to 24 months in some cases. You need to read your agreement carefully to see what the annual percentage rate will be on your 0 APR credit card after the introductory rate expires before you sign the credit card application.
It is imperative that the 0 APR credit cards regular percentage rate is at least 3 points lower than the annual percentage rate you are currently paying, if its not, you may want to consider consolidating credit card debt by some other method. It simply won’t make sense for you to transfer you balances over to 0 APR credit cards if the interest rate is going to be jacked up higher than the rate you are already paying.
Check out our list of the Top 10 0% APR Credit Cards in America including what the normal apr?s will be after the intro rates expire, and discover how to finally find the Best Credit Card to help you achieve Credit Card Consolidation the smart way at 0BalanceCreditCard.com.