Zero Interest Credit Card Offers
Are zero interest credit card offers too good to be true? If you accept a credit card offer with a temporary low interest rate, many times you'll end up paying more. This type
of offer generally comes with a price. Specifically, a transaction charge of 4% or more can added to the initial balance transfer. Here's why that means so much to your
bottom line. First, if the zero percent term runs, say, 6 months, the effective interest rate applied to the entire transferred balance is 8%. And that's not including
what is many times astronomically high rates once the offer period is over. Sure, you may plan to pay it off when that time comes, but life often interferes with those plans.
Credit card companies are making out well from these offers. Beware, while they are counting on the procrastinator in all us to enable them to levy immorally high interest
rates on us, they also cook the numbers with transaction fees which earn a healthy return on their investment even if you do pay the balances off.
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