| By :
Liz Roberts
Copyright (c) 2010 Liz Roberts Most consumers are applying for zero percent APR credit cards. Why? Who does not want a card with 0% APR? You will surely consider a card that has this special offer. But is this card for real? Is it really as good as they seem to be? Is it really a good idea to get one? To answer these questions, read this article further. What 0% Interest Really Means What does the zero percent interest mean? The zero interest will not cover a very long term. Some credit cards give the 0% interest rate for a period of six months while others may give as long as 12 months to enjoy the zero interest rate. Naturally, regular interest rates will then be applied after the introductory periods expires. Also, the zero interest offer may apply either on purchases or balance transfers in your account. You need to very sure whether the zero percent rate applies to the balances you transferred alone or to the purchases you've acquired. If the 0% rate applies only to balance transfer, you should be careful not to use your credit card for purchasing expensive items that you can't afford to pay back in full at the end of the month. Remember that the zero interest only applies to your balances transfer but you will still incur the interest rate on your new purchases. In addition, although you may enjoy zero interest, you could still be charged with transfer fees each time you transfer your balance from another credit card. After the Zero Percent Offer Ends, What's Next? How much will the interest rate be after the introductory offer ends? Watch out! If the 0% rate applies only to balance transfer then you must be extra careful in using your card and avoid purchasing expensive items that you can't pay back in full at the end of the month. If you don't check your credit card's terms and agreement, you may be surprised to find yourself with a credit card that has an unreasonably high rate of interest. Even worse, if you fail to complete your payments with the balances you transferred, you will have to pay for these balances with high rate. When choosing a 0% APR credit card, be sure that it has reasonable interest rates even after the zero interest offer expires. Consequences of Zero Interest Credit Cards Most credit cards with zero interest offer impose strict rules and conditions particularly when it comes to submitting payments. Not submitting you payments on or before your due date can cost you a disqualification from enjoying the zero interest and you could be charged with the regular rates. Aside from that, you may be required to pay the penalty fee which can only add up to your debts. Therefore, if you have made the decision to switch from a regular credit card to a zero interest credit card, you should be clear about all the rules and you should be very aware of your payment obligations.
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