Zero Percent Cards
Posted January 1st, 2010 and last modified January 16th, 2012If you are one of the many people trying to dig their way out of credit card debt zero percent cards might be helpful.
However, the fact that the card will help you is exactly the reason you must be extremely careful with it. Part of the reason these cards are offered is that credit card companies know there is a chance you will mess up and they will wind up making more money from your account.
If you transfer a balance to a zero percent card and then pay off that balance on time within the introductory period they make very little or no money. However, if you default, they can and often due wallop you with charges and rates that are significantly more then if you had never transferred your balance. But, if you do pay on time and continue to do business with them after the original debt is paid it is a win-win for both you and your credit card company.
Featured 0% Credit Card
If you are trying to dig your way out of credit card debt then the HSBC Credit Card is a fantastic card to get in control of your debt with. The HSBC Credit Card features a $0 annual fee for the life of the card plus an introductory 0% p.a for 6 months on balance transfer.
- $0 annual fee
- 17.99% p.a. on purchases
- 0% p.a. for 6 months with 2% handling fee on balance transfers
- Cash Advance Rate of 21.99% p.a.
- 55 days interest free
- Minimum Income Requirement of $20,000 p.a.
- Up to 55 days interest free on purchases
Featured 0% Credit Cards:
They key to success with zero percent cards is being responsible. Some people think that they can jump from card to card transferring the same balance over and over. This is possible to do, but probably requires more work then just paying the balance off. Also, each time you apply for a credit card, whether you are approved or not, it is noted in your credit history. Too many of these notes can negatively impact your credit file. Anyone trying to get out of debt or salvage their credit should be very aware of any notes on their credit file.
In order to take full advantage of zero percent cards you must set yourself on a course to pay off your balance transfer. If you do not pay off the debt before the introductory period ends you will be back to square one with a big debt that grows each month because of interest charges. If you continually transfer from one card to another any financial reprieve will be overshadowed by the damage you are doing to your credit file.
Look carefully at credit offers, read all the fine print, and know when the introductory period on zero percent cards ends. Set a goal to have the balance paid off or down as much as possible before that date and you will improve your credit and your cash flow. If you got yourself into a financial mess you can surely get your self out of it.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
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0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
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