If used wisely,
interest free credit cards can be
a good way to get a ‘free loan’. All too often though,
people get caught out by hidden charges and end up in a bit
of a financial pickle.
If you follow some of the rules below, you should be able
to steer clear of the pitfalls of 0% credit cards.
1. Be 100% sure that you understand the length of the 0
interest period. Frequently people go over this period by
mistake, and can then be lumbered with excessive interest
charges. Keep the documentation that states the end date of
this interest free period safe, and mark the date on your
calendar, ideally also marking a week or so before it ends,
to give you time to clear the balance.
2. What is the rate after the interest free period? – Even
if you think you will not have any debt on the card by the
time the 0% period runs out, if the present financial
climate has taught us one thing, let’s hope it’s to expect
the unexpected! – For this reason, make sure you know the
rate after the 0% period, as with these sort of offers, the
rate can often be quite high compared to ,most other credit
cards.
3. If the offer is for 0% on purchases, what exactly do
they cover under the definition of a ‘purchase’? – This may
seem an odd question, but take it from us, the answer can
oftentimes surprise! – For example the purchase of gift
vouchers and online gambling may not be covered…
4. If you fail to make a months payments, what happens? –
Whilst at first this may seem like a trivial matter – as
you would expect to get a small charge on your account at
worst, in actual fact, with some lenders failure to meet a
monthly payment MAY result in a loss of the interest free
period!!! – Check your terms!
If you fee that you need help
