Credit cards are certainly one of the greatest weaknesses for human beings. Now, I can’t really speak on behalf of everyone else, but Americans are seriously guilty when it comes to charging it. I worked in customer service for 8 years and saw people day-in and day-out, abusing those evil credit cards. I call them evil for obvious reasons. They tend to shaft you with the interest rates at some point or another.
Of course if you can find 0 apr credit cards, then that’s ideal. You want no interest rate on balance transfers and purchases. Ha, if you can actually find such a credit card, then I commend you.
If you’re not yet savvy when it comes to credit cards and how they work, let me fill you in. The perfect plastic would be 0 apr credit cards. Now, these are not so easy to come by. Typically what credit card companies do is pitch a 0 APR on balance transfers. This generally only lasts for a year. Then it’s hard to say how high the annual percentage rate will go. This is their way of catching your interest. Maybe you have student loan debt of ten grand, which has a horrible percentage rate.
Well, you can transfer the balance onto your new credit card and suddenly have a 0 percentage rate. That’s great! There are no two ways about it. It would even be better if you could pay the debt off before the year of 0 APR runs out. Anyway, with most 0 apr credit cards it doesn’t concern purchases. I have yet to see a credit card that offers 0 APR for a year on purchases. They want to make money off the interest. This is why they don’t offer it with purchases. They know, however, that they will keep you if you transfer a balance onto their card. It’s hardly ever over after one measly year. Then you will be forking out the interest each month. This is simply the way of the credit card.
Maybe you’re searching for 0 apr credit cards in order to do a balance transfer. Hey, you should absolutely delve into cyberspace and do a Google search. I’m sure you will find several 0 apr credit cards currently available. Just remember that these 0 apr credit cards most likely regard balance transfers. It’s doubtful that the 0 APR concerns purchases. So basically don’t charge them unless you have to.
So when you get a zero percent offer, they plan on recovering the lost money from the time they support your debt and you pay no interest. One way they do that is with a transfer fee. They will almost always charge you a 3-5% balance transfer fee with a minimum and sometimes a maximum value. Read the fine print carefully to make sure you understand how much this is going to be and that you agree to it.
But be aware that the transfer fee is nothing more than disguised interest. So calculate that against the interest you would have paid leaving the debt where it is sitting now before you cash in on a zero percent balance transfer.