When a credit card advertises zero interest rate, a lot of people excitedly check out the offer.  Some may even sign up right away, without taking a closer look at what the offer entails.  In fact, some cardholders make a bold move of switching to a new credit card with 0% APR, only to find later on that they’re stuck with a higher interest rate as soon as the introductory rate expires.  So if you’re planning to apply for a new card with zero interest, what should you first consider?

Is a Zero-interest Credit Card For You?

Generally, the zero interest rate is only applied to one particular transaction.  Some cards offer 0% APR on balances transferred but an expensive rate on new purchases.  As a result, you might incur an even bigger debt due every time you use your zero-rate card for shopping.

Nevertheless, there are those who apply for a 0% balance transfer card, without actually using it for consolidating balances.  They might think that the zero rate is applicable to new purchases when in fact, it is a different rate altogether.  If you’re not careful, you could be signing up for the wrong reasons.
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Credit cards that offer zero percent interest rate are certainly popular among consumers.  Of course, everybody would welcome the chance to enjoy zero interest from their credit cards.  Nevertheless, although a 0% APR sounds tempting you need to be careful about making choices.  In this article, let’s discuss some things that you need to consider before signing up for a zero interest credit card.

What 0% Interest Really Means

First, it’s important to remember that free interest rate is not a permanent deal.  The new Credit CARD Law mandates issuers who want to offer an introductory rate to allow 6 months, at the very least.  You may be able to find credit cards that offer up to 12 months of 0% APR.  But as soon as the introductory period ends, the regular interest rate will apply. Hence, a consumers needs to check how much the regular rate would be when the 0% APR expires.
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