Are There Any Hidden Charges With 0% Purchases Credit Cards?
Posted November 13th, 2009
and last modified December 7th, 2009Charges on this type of credit card will not be exactly hidden, but some people will just not take them into account in their excitement about grabbing such an attractive deal.
These may be upfront fees such as the annual account fee, or charges made at a later stage through misuse or poor use of the credit card. Either way, the smart customer will be aware of these and will not suffer them.
The best way to use a 0% purchases credit card is to make your purchases within the offer period and make sure the balance is totally cleared before the offer expires. In this way, there will be no extra charges to pay in the form of interest.
Fees and charges on a 0% purchases credit card:
The most obvious fee is the annual account fee. Although there are certain cards on the market that do not charge an annual fee, you would be extremely fortunate to ever find one that does not charge this when the card also offers the benefits of 0% on purchase. The credit card provider has to make a little money somewhere along the line – especially considering there will be people who do use the card very wisely and therefore do not end up paying interest. This annual fee should be compared with other credit cards to verify it is not a lot higher than normal. The offer period is only likely to be around six months, so a punitive annual fee would be unacceptable.
Another charge to be aware of is not really a charge, but rather any interest that will kick in on your account should you fail to pay off your balance in full at the end of the offer period. The regular APR on a card with this kind of offer could be on the higher side of average.
You should also be aware of any charges that may be levied should you fail to pay your minimum balance one month, or if you pay it too late. Fees are usually charged if this happens, and you may even find that your 0% offer is automatically voided.
Cash transactions will also attract a fee, although if you are using a credit card rather than a debit card to make cash transactions, you can’t really complain. The facility may exist for these transactions to take place, but it is not a wise use of any credit card. You will also be charged interest from the day the cash transaction is made, because cash transactions are never a part of a 0% purchases deal.
Related posts:
- Aussie Credit Card Fees & Charges
- How to Avoid Paying Credit Card Fees and Charges
- Suncorp Credit Card Fees & Charges
- How To Minimise Your Credit Card Fees & Charges
- Why Are Only Some 0% Balance Credit Cards Suitable For Making New Purchases?
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