3 Points to Consider If Tempted By A 0% Credit Card

An interest-free or 0% intro credit card is now more readily available than it has been for the last few years.
Cards with the limited period of no-interest are highly attractive for those wishing to cut the cost on existing credit card debt due to not paying off the entire balance each month.
Here are several points to consider in the process of signing up to the zero percent cards - Credit score Anyone wishing to sign up for the 0% credit card is likely to need a great credit score, which is in the region of the 700 mark.
Card issuers are keen to offer this type of card to those that pose the smallest chance of defaulting in the future.
It is important to watch the spending habits during the introductory period since issues with credit experience during this time is likely to reflect on the interest rates in 6+ months time.
Any negativity in management the finances could mean a significant increase in the interest rates once the intro period expires.
Future APR and annual fee Even though it can be very tempting to just consider the immediate period of zero interest, it is still crucial to consider the applicable fees once the intro period expires.
Beyond the initial offer of 0% interest, other card features to consider relate to the reward program, monthly interest rate, and annual fee.
If you already have another card with attractive interest rates and rewards, it might only be worthwhile using the second card until the period of zero-rate interest expires.
It is important to remember that opening and closing credit cards after short periods is certain to have a negative impact on the credit score.
Transferring a balance An ideal time to apply for the zero percent credit cards is when you are aiming to cut a sizable balance on an existing card.
The interest-free period of six plus months offers a perfect opportunity to pay more money back to the card issuer without needing to be concerned with covering the cost of interest charges.
It certainly helps to make a substantial reduction in the debt during this introductory period, especially if the future interest rate is higher than on the original card.
Also, since most of the balance transfers are subject to a fee in the region of 3% of the balance transferred, it is important to factor this cost into the potential savings.