There’s no doubt that zero or low interest credit cards are enjoying huge popularity in the market. And why not! The chance to use your credit card and pay your bills with no interest charge is certainly an enticing offer.

Have you received an offer in your mail for a zero APR credit card? If yes, you may be thinking about signing up with that card. But before you do, consider the following pointers.

How long will the zero interest last?

Yes, the zero interest offer may be for real but how long will it last? Obviously, the 0% APR is not a permanent deal. Some credit cards offer 3 to 6 months introductory period while other cards may offer as long as 12 months to more than a year. Thus, it’s important to understand exactly how long you can enjoy the 0% APR on your card and how much the rate would be after that.

The rate of interest beyond the introductory period.

How much would the regular interest rate be after the introductory period? Signing up for a zero interest credit card without carefully examining the details is a risky move. It’s easy to get approved but in the end, you could be stuck with a card that has an even higher rate than your current credit cards.

Where does the zero interest apply?

Most credit cards impose more than just one APR. This means, the zero interest offer may only be applicable to one of your credit card charges. For instance, the zero interest may only apply to balance transfers but not on your purchases.

Zero interest balance transfer cards are good if you want to move over existing balances from your other credit cards. Nevertheless, you should be careful about using that card for new purchases, as the high interest for purchases could get you into trouble.

Also, take note that the interest rate for cash advances is always different from that of the rate for balance transfers or purchases. Often, the rate for cash advances is much higher. This is why you should avoid using your zero interest card for taking out cash from the ATM. Remember that cash advance transactions are not covered by the introductory period so you will be charged with the extra interest immediately after taking your cash.

What about the rest of the fees?

When choosing a zero interest credit card, one should take time comparing all his options. Don’t forget to check the rest of the fees, aside from the interest.

For instance, does the card carry an annual fee? If yes, how much would it be? Annual fees can range from $30 to $100 depending on the type of credit card. If you’ll need to pay $80 each year, just to keep your card active, would it be worth it?
Other credit card costs that you should check on are the late penalty fees, over-the-limit costs, balance transfer fees, and other transaction charges.

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended bad credit credit cards.
Copyright 2008.