If you have received one of these offers in the mail, you know how tempting they can be. They claim that you will pay no interest on any purchases or balance transfers in the first period of owning your card. But there are some things about these offers you need to know before you sign on the dotted line and let them pull your credit report1. The 0 APR offer is for a limited time.
Most credit card companies that offer the 0 percent interest rate deal only offer it for a limited time. This means that you will pay 0 APR for six months, nine months, or up to a year. You need to check the fine print for this information and be careful to notice it when the time is up.
2. The 0 APR offer might not apply to everything you put on the card.
Many cards offer 0 APR on all balance transfers and any purchases made during the introductory 0 percent interest period. But some only offer the 0 APR on balance transfers, and you pay a very high interest rate on any purchases.
3. The 0 APR offer might be null and void if you are not on time with your payment.
Most of these credit card offers are contingent on your being an exemplary member. This means that you have to pay your minimum payment on time every month during the introductory period or else you automatically lose your nice 0 APR and move up to a rate that usually ranges from nineteen to twenty-one percent interest.
4. The 0 APR offer might carry a ridiculously high interest rate after the introductory period is over.
Again, the rate of interest for these cards after the 0 APR is over usually runs from nineteen to twenty-one percent.
5. The 0 APR credit card will not repair your credit.
Remember that consolidating your cards or transferring your loan balance will help you pay off the balance without interest, but it will not remove the damage already done to your credit.
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