What is free with free credit cards?
Don't get carried away by the word free. You may find it referring to the word free credit application forms.
Credit card companies offers are catchy like free credit card merchant account, business card credit free, free credit card consolidation.
Free credit card debt management may mean the debt management is free and not the credit card. Free credit cards, in layman terms, are credit cards that carry a zero percent APR. Yes, you read that right; there indeed are many free credit cards that carry a zero percent APR! But a zero percent APR is like a good time, and, good times don't last long. The same principle goes for the zero percent APR.
There are a whole lot of credit card companies out there and each of them wants you as their esteemed customer. As the credit card business gets red-hot competitive, card companies start going to great lengths in order to ensnare customers. And what better way to get customers than to offer them an
introductory zero percent APR!
The result is that you're most likely to see advertisements, mailers, and solicitations with “0%” - and that spells free credit! - splashed in big letters and standing out from the rest of the fine print. While it is normal for you to get hooked on to the “0%”free credit, you must focus your attention on the real, permanent APR that takes over once the introductory zero percent expires. If the permanent APR is higher than the one you are paying, then don't bother reading any further.
Balance transfer: The best advantage of free credit cards
Zero percent credit cards have revolutionized the “balance transfer” process and have helped many people with previous old credit card debts.
Most cards feature a zero percent balance transfer program which allows you to transfer an existing credit card balance where you are paying a high rate of interest to a new card featuring a free credit period. And, because you
are going to give your business to the new credit card company, it will carry your old balance for a certain period (usually six to nine months) without any interest - provided you make your payments on time. So, if you carry a high credit card debt, transferring it to a new zero percent credit card will just be the right thing to do.
To get full value out of such cards, you must keep paying the bills on time regularly, ensuring that you really pay zero interest till the introductory period is over.
And, you must try your best to square up your carried-over balance within the interest-free period to make the best use of your new zero percent credit card.
Of course, you can use interest-free credit cards to make necessary purchases if you don't have any balance to transfer and take advantage of the interest-free period. But, once you delay a payment, you can kiss that 0% interest goodbye. Interest free credit cards are also marketed adopting colorful lingo such as: credit
free business cards, free bad credit cards, etc.
Factors to consider while choosing a free credit card
Before choosing an interest free credit card, you have to sniff around the fine print and look for snags in the following key factors:
- Check how long does that introductory rate of zero percent last.
- Figure out the permanent rate of interest (the rate which applies after the introductory offer expires) you will be paying.
- Check if the zero percent raterates are is applicable just for balance transfers only, or does it extend to other purchases as well.
- See if the card charges a balance transfer fee.
- Compare the card's late fees and over-limit fees with those offered by competitor's cards.
- Make sure that you will be able to transfer your balance to the new card smoothly.
Above all, remember that you may not qualify for a new card. So make sure that you will get the card before making a financial plan involving a balance transfer or
some mega interest-free purchases.
Interest-free credit cards: Marketing scams
Sure enough, credit card companies are honest business houses. But some are on the prowl, out to rfob you off your cash without giving you a credit card. Here's how:
- Some companies issue advertisements that lead you to believe you can get an interest-free credit card once you call the telephone number that's given in the advertisement. The scam is the telephone number. Usually, it will be a “900” number service and a call will cost you anything between $ 2 to $ 50 and more; +, a fact that is not stated in the advertisement. The company that has issued the advertisement makes money out of the phone calls you make and simply vanishes after that.
- If an “advance fee” clause is present on the application, then you ought to roll up the application and chuck it away. The “advance fee” scam is one of the worst credit card scams. What happens is that the card-issuing
company offers you an interest-free card that's loaded with super features, and asks you to pay some advance fees in order for your application to be processed. Once you pay up the application fee, you, in most likelihood, won't hear again from them.
- Credit protection is another scam. Credit card companies want you to insure your credit card against theft or loss, so they make you sign up for this extra protection cover. Very often, these protection charges are too high and cover only the itsy-bitsy stuff. Avoid them like a disease.
Related Articles
How is Credit card Processing carried out?
Vital info on Credit Cards
Which are the Best Credit Cards?
Get the best deals on Credit Cards
Compare business credit cards to find the best
Bookmark this Page
Email this to your friend
Add this page to del.icio.us
