0% Credit Card Offers – Good and Bad

Anytime you can make a purchase of good and services and do not pay interest it is to your advantage. You are using other peoples money, OPM, and it gives you a leg up. The disadvantage is paying off that debt in the future. The key is to use the opportunity to your advantage and not end up paying your hard earned dollars in interest payments.

The Good

Paying no interest gives the purchaser leverage with their funds. Many issuers offer this rate and it simply takes a little investigative work to find a good card. It is a simple task to go on line and see multiple offers for 0% APR. This is a wise move for a family that needs to micro manage their funds. A family can float debt for a time and use this credit line to get through a rough time in their personal budget.

If you are currently carrying a balance on a standard card at 12% to 18%, look for an offer on a balance transfer card. Most of these cards offer 0% on the transfer balance from 3 to 12 months. This can give you immediate relief on an existing balance. The key is to budget your funds and get this balance paid off before the introductory period is over.

The Bad

In spite of the good intentions one may have there are some traps along the path. First and foremost is to avoid being in the position that makes you carry a balance on your credit card. We have all had an emergency arise and being here can happen to anyone. Life seems to have a way of sneaking up on us now and then.

Transferring your balance to another card is a good strategic move if you find yourself in a bind. Making this move too often can have a negative influence on your credit rating. Opening and closing credit cards is not favored by credit reporting agencies. Be careful about doing this too often.

Credit card issuers that offer this 0% rate will usually limit the time. Most offers are between 3 and 12 months. Take note of the time frame. If you apply for a balance transfer card you may 0% on the balance but you will pay interest on any new purchases.

There is both good and bad for 0% credit card offers. Using these cards is wise but be aware of the fine print and use a budget to get it paid off during the time allowed. Compare some of these offers.

Source by William Sears

Leave a Reply

Your email address will not be published. Required fields are marked *