0 Apr Credit Cards

by : marsel

Credit cards now come in a several varieties. What used to be a simply decision making process can now become a challenge, because of the many types of credit cards to choose from. It has been said before that the credit card industry is a very competitive one, so credit card companies constantly think of ways to outdo their rivals. This may come in the form of promos, freebies, and other types of rewards.

Just for additional information, the total credit card debts of people in the United States has already reached more than $900 billion according to the Federal Reserve Bank, and this is in the year 2007. Among the biggest credit card companies are Citigroup, Bank of America, HSBC, JPMorgan Chase, American Express, Discover Card, Capital One, Wells Fargo, Washington Mutual, and US Bancorp. On the average, the American consumer may have as much as four different credit cards in his wallet. These stats only come to show that credit cards are still very popular payment options for modern society.

As said already, credit card companies will come up with interesting come-ons to get you to open up an account with them. One of these is the 0% interest credit cards or zero interest credit cards. This simply means that you have no interest or no APR to pay. Whatever balance you may have, there will be no additional rates imposed on it to change its value.

But what's the catch? The 0% interest period is only valid for one year up to fifteen months upon opening a new credit card account. There are simpler credit card types that allow 0% interest for 6 months or 9 months only. After this period of time, you will be imposed with the regular APR or interest rate of that credit card company. A lot of people are not aware of this catch, and they immediately apply for a credit card simply because it has no interest. Little do they know that they will have to pay the interest one time or another.

Some of the cards that offer 0% interest are Discover, Citigroup, American Express, and Chase. Given this knowledge, why do people still opt to take zero interest credit cards? For one thing, the no interest scheme is helpful if you are making a balance transfer from an old credit card to your new one. Not having to pay the interest for a year or so can help you pay off your old credit card debts quickly. This is if you are religious in making your payments, and are careful with what you are spending for on this new credit card.

Before you sign on the dotted line, check to make sure that you are well aware of all the terms and conditions of your 0% interest credit card. Also, once you have your new card with you, make sure you monitor all your expenses wisely. This helps eliminate the added headache of getting an account that has ballooned out of proportion because of hefty interest rates.