Tips to Avoid the Dangers of 0% Interest Credit Cards

There are lots of credit card companies offering % interest rates. Zero percent cards are very lucrative nowadays and people think it as a very good deal. It is, indeed. But you should take time to think things over and know everything about the offer before signing up the contract.

Never forget to weigh things before making a decision because if you will choose in a hurry, you might get yourself in a whole lot of trouble in the end. Ask around or do research from the internet to find the right card.

Consider some of the aspects you should keep in mind prior to getting the opportunity to geta zero-interest credit card? Your credit card contract includes information about penalty charges, changes in your interest rates, your eligibility to enjoy the % interest, the "universal default" clause, and other specific conditions.

In this article, allow us to talk about the probable risks which you may come across once you have % interest credit card. Realizing these things provides you with a better idea on the best way to use credit cards to your benefit.

The "universal default" clause. What is universal default? It is a exercise in the financial services industry where a specific loan provider can change the terms of a loan in case the credit card holder misses a payment or does not pay timely. It is wise to take note if your credit card agreement has this clause because even a single late payment move your issuer to vary your interest rates with no notice.

Penalty for unused credit account. To continue enjoying the 0% interest rate for the balances you transferred and to prevent your account from closing, you may be required to use your 0% APR credit card to make new purchases. Take note that some 0% balance transfer cards impose a very high interest rates on purchases. But If you are not going to use your credit card for purchasing, you may be penalized and even get disqualified from enjoying the 0% APR on your balance transfers.

Changes of interest rates. It is best if you would ask the issuer or representative of the credit company these questions: - How long will be the introductory period lasts? - If the introductory period ends, how much will the interest rate be?

You should be well aware of these things because if not, you might end up with an even higher interest rate card than your previous one. Furthermore, watch out for possible changes in your interest rate once you missed a payment or failed to pay on time.

Penalty fees. A credit card holder is charged with penalty fees when he/she misses or fails to pay on time. Therefore, it is important to make sure that you have the capability of making payments on time to avoid penalties. See to it that you have a regular source of income to pay off your credit card balances. You can enjoy the perks of having a credit by being responsible in repayment obligations.

Author Resource:- New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of credit cards for bad credit

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