The Truth About 0% APR Credit Cards
By Morgan Hamilton
The competition between credit card companies is
getting fierce. Many credit card companies are offering
special incentives to get you to sign up for their
card. 0% APR is one deal that many credit
card companies are using. These 0% APR credit
cards often spell trouble for the consumer, though.
There are special rules and limitations that apply
which are usually hidden among legal wording in the
While it is illegal for a credit card company not to disclose all fees and
charges for their credit card, it is not illegal for
them to put it in small print.
Credit card companies
are aware that many consumers do not even bother reading
these paragraphs so they stick the truth about 0%
APR deals in there. They make sure they announce in
large, bold print that the card has 0% APR. This is
very appealing because it is the APR or interest rates
that often cause consumers to have credit card problems,
so no interest seems like a great deal.
Hidden in that small print, though, you will often
find out that this is for a limited time or only applies
to new purchases, not balance transfers. Once the
limited time is up the APR usually sky rockets to
a huge rate. Even worse, some consumers transfer balances
thinking they will get a nice break from interest
and be able to pay the balance down quick, only to
find out the offer does not apply to the amount they
transfer. Reading all the information provided with
an offer is extremely important to avoid such problems.
There are other tricks to the 0% APR offer, too.
Some cards offer 0% APR on balance transfers, but
once that is paid off the APR goes up. The trick here
is that any money you pay is applied to the transfer
first so it is paid down quicker. Any other purchases
you make are charged a high APR. Some credit card
companies make up for the 0% APR by charging
high annual fees or other high rate charges or they
add a transfer fee charge. Many 0% APR deals are voided
if you are late on a payment.
Some companies have lowered the grace period which
makes it easier to be late on a payment. Another quick
trick is sending you a different card then the one
you applied for and not offering the 0% APR
on that card at all. Often in the small print on your
application it will state the company can do this
if you do not qualify for the card being offered.
These are some ways the credit card companies can
get out of the 0% APR offer.
The truth about 0% APR credit card offer is not as great as it may seem.
Avoiding this trap is easy if you know where to look
for the catches and exceptions. It is all up to you
to weed out the good offers from the bad ones. Read
everything before signing up for a credit card and
should be able to avoid any problems.
Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Credit Cards.
Get the information you are seeking now by visiting
0% APR Credit Cards.
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
For another perspective read our article about the
For more information, search our site or the web: