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I get many 0% interest rate card offers. I would like to apply for one. But i read somewhere it is not always wise to use 0% interest rate cards. Can someone advice me on this.
Thanks in advance for any help
Zero interest rate card
Zero interest rate card
Hi Paul,
Nothing can be better than having a 0% interest rate card, provided the rates are not hiked. Though many card issuers keep the introductory interest rate of some cards as 0%, it does not last long. Generally credit card (CC) companies raise the interest after the first year. So before applying for a 0% interest rate card, you should clearly ask the CC company, about their policies for increasing the interest rates. You should also read the "fine print" to get an idea about their terms and conditions.
You must also be careful and make timely payments for 0% interest cards. In case you are late, it is possible that the CC company will charge you with heavy late fines. It is also unlikely that a the company will waive off the late fines, even if you request a goodwill adjustment. They might also raise the interest rate, as penalty for default in payment.
Hi Paul,
A 0% interest card can be useful while paying off debts. You can transfer the balance of your high interest rate cards to the 0% interest cards. By transferring the balance to the 0% interest card, you can reduce the monthly repayment amount. But if you do not carry balance on your credit cards, a 0% interest card is of no use.