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 small print.
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
About the author:
Morgan Hamilton offers expert advice and great tips regarding
all aspects concerning Credit Cards. Get the information you are
seeking now by visiting
http://www.FindQualityCreditCards.com
