No interest credit card offers
No Interest Credit Card Offers: Use Them Wisely
No interest credit card offers sound too good to be true. For those who use them wisely, no interest credit card offers are a cornerstone to good financial management. Yet there are people who use no interest credit card offers and then several months later find themselves in financial hot water. How can you embrace the former and avoid the latter? Here are three things to keep in mind:
1. Banks want to make money. Banks issue no interest credit card offers because they're placing a bet. Banks are betting that you'll sign up for the interest-free credit - which lasts for a certain number of months - and then fail to pay the balance. The result is the same whether you live in Los Angeles, Dallas, or Rand CO, namely that you'll wind up paying an exorbitant interest on the balance. Banks want to get their money - if not now, then later. So make sure to keep current on your balance, or make sure to pay it off before the zero percent introductory rate expires.
2. Higher APRs often follow. No interest credit card offers are teasers. Before you jump at the chance to sign up for one, read the not-so-fine print. Check the annual percentage rate (APR) and compare it to your other credit cards. If the APR is higher than your other cards, pledge to stop using it after the introductory period. Ditto if the card carries an annual fee.
3. Balance transfers can backfire. No interest credit card offers, whether made from a local bank in Rand CO or a national bank, can be used wisely when they're utilized to transfer balances from higher interest credit cards. But the strategy can backfire if the balance transfer fee turns out to be higher than the interest you'd pay on your other card, or if you don't pay off the transfer before the teaser rate expires.
Residents of Colorado and every other state should accept no interest credit card offers with their eyes wide open. These offers can be a dream come true - or a nightmare.