Zero Percent Credit Cards Info

You read it right, folks – zero percent credit cards are currently a dying breed, so you better get while the gettin’s good.  Anyone not lving under a rock, log, house, or elephant for the past year knows that transaction interest rates have been rocketing upward, and haven’t showed much signs of slowing down.  In addition, those folks currently lending credit lines through plastic cards – aka credit card companies – have grown very weary of offering low-interest rate deals on their credit card plans – particularly zero interest rates!  Generally speaking, people just aren’t paying off their debts on a time line profitable to the credit lenders.  Since 2008, zero APR credit offers have dropped 45%.  Yeh, that’s significant.

Not only has the count in available plans dropped, but the factors that go into choosing a 0% credit card have become less-enticing as well.  Where a year ago, it wasn’t uncommon to find 0% balance transfer plans with intro periods lasting 16 months, the new average is barely breaking 9 months.  Those who are smart enough to take advantage of a zero percent balance transfer card will find they, as a whole, will have less time to take advantage of the plan.  It’s not just balance transfer cards either.  Similar trends are evident in purchasing plans as well!

So is all hope lost?  No, not right now anyway.  There are still over 50 legitimate zero percent credit cards available to those with outstanding credit (outstanding as in excellent.  Why didn’t I just say excellent?  Shut up, that’s why!), but I can’t stress this enough – if you’re planning on using one of these, do it responsibly.  You could be in an absolute world of financial hurt if you drift into that ongoing rate zone still carrying a heavy balance.  Also, not that every moron with a credit card is going to read this article, but if people continue to hold out on their credit lenders, the zero interest charge card will go extinct.  We don’t want to make a dodocard, do we?  Ok, that was weak, I know.  Nevertheless, despite the things that can go horribly wrong with a zero interest credit card, a responsible holder can do plenty of right.  So, for the sake of those of us who want to do plenty of right, hope and pray that these fine creatures stick around for a little while longer.  Take advantage of zero percent credit cards while you still can!

This list suggests zero percent credit cards that not only offer 0% on balance transfers, but the same rate for purchasing as well.  The threshold for approval is very high on zero interest credit plans, but if you see a card that suits your interests, and you’re feeling responsible, go ahead and apply:

Discover More Card – Here’s the haps on this fine piece of plastic.  First off, you’ll notice, it has a freakin’ American flag on it – I know, you’re already sold.  Not only does it boast your patriotism, but it has one of most incredible cashback rewards programs in the industry.  In addition to its killer cashback incentives, you can use it to opt into anything from top-notch fraud protection to half a million dollars in travel accident insurance.  Regarding the zero interest factors, you’re looking at 0% for six months on purchasing and 12 months on balance transfer.  The ongoing APR rests as low as 11.99%, and with no minimum transfer fee, and no annual fee.  The only relative downside to this American wet dream is that it carries a 5% transfer fee – not terrible, but not great either.  This card would be ideal for purchasing programs.  Perfect if you plan on attempting to make money using zero interest credit card.

Citi Platinum Select Mastercard – This is an all-around winner.  Platinum has grown to be a rather cliche adjective in not only reference to credit cards, but financial and service industries as a whole.  There’s nothing cliche about this card.  It lives up to its platinum namesake by being an all-around great zero percent card.  Although it doesn’t boast a rewards program quite as robust as the aforementioned Discover More Card, it more than makes up for it with Citi’s renown service standard.  You can get a hold of a representative 365-24/7, whether it be to inquire about your plan or implement Citi’s industry-leading fraud protection service.  Concerning the 0% aspects, it’s perfect for balance transfers – carrying a fee of just 3% – the only caveat being a six month intro period.  On the other hand, the purchasing program also carries a 0% interest plan for six months.  If you qualify for this card, and you’re not an idiot, you won’t lose.

Public Savings Bank Visa Black Card – This is a card targeted toward you crazy folks who screwed your credit up, but still feel you deserve a zero percent interest credit card.  Your wish has been granted.  This card not only allows you to do your purchasing interest free for 6 months, but it carries both an ongoing, and default APR of just 11.24%!  All payment activity on this bad boy is reported directly to the three major credit bureaus, so if you’re trying to swim back up to the surface, you’re doing it with the right (hopefully not wrong) people watching you.  The only real downside to this card is that it doesn’t offer a 0% balance transfer plan.

There you have it – the cream of the crop of zero percent credit cards.  Plan, choose, and spend wisely!

Zero percent credit cards are essentially lines of credit issued by card companies with introductory interest rates of 0%.  Sounds wonderful, right?  Definitely- if you’re very careful.  First off, the definition given in the first sentence has an operating keyword, and that is “introductory”.  There isn’t a credit card company in the world who is going to offer you a permanent fixed interest rate of 0%.  I’ve done my research, and the longest running credit card of this type I could find is the Virgin Money Card, which offers the killer rate for 16 months.  Speaking in terms of longevity, you’re not going to do much better than that (let me know if you do).

So, we’ve established that the wonder rate won’t last forever – that’s ok – a lot of you won’t even qualify in the first place.  “Whoa!”, you say, “My credit score is pretty good, buddy”.  That’s great – you should go buy a house!  However, just having a “pretty good” credit score isn’t going to qualify you for zero percent credit cards.  You need an excellent score – we’re talking 720+ range – anyone who approves you with a score lower than that has something up their sleeve.

If you want to avoid denial, there’s another important factor to consider – whether or not you’re a “card hopper”.  If you bounce from company-to-company with no longevity, it’s going to stick out like a whore in church during the approval (denial) process.  It’s one of the first factors credit companies look for?  If you qualify for a credit card that offers a 0% introductory rate, you’re most likely already in the habit of sticking to a prompt payment schedule.  Regardless of what type of interest free plan you go with, it will be to your benefit that you continue to pay on time.

There’s more than one type of plan?  Correct – there are two types of these credit cards.  Although on occasion, you’ll find one that offers the same rate in both categories (not always as nice as it sounds), they typically fall into either the category of balance transfer or purchasing cards:

0% Balance Transfer

A balance transfer is exactly what it sounds like.  It’s when you transfer the balance on an existing line of credit to a new credit card.  Balance transfer cards are typically employed when one has an over encumbering balance yielding a high interest rate, and desires to pay it off with a more affordable plan.  Considering the average credit card interest rate is around 17%, transferring your balance can often be a good idea.  “A good idea?”, you ask,  “How about a freakin’ great idea!  What kind of idiot would pass up on a 0% balance transfer credit card?”  Well, an idiot who did his homework…c’mon, you knew there would be a catch or two – here they are:

• Remember when I said that zero percent credit cards don’t last forever?  I’m saying it again.  Once that 4 month, 6 month, 12 month…period runs out, that rate is going from 0 to 60.  Well, maybe not 60, but it’s going to skyrocket, and any remaining debt is going to skyrocket as well.  Only sign up for a 0% balance transfer card if you’re sure you can pay it off within the introductory time frame!
• The interest rate may be zero, but there will always be a transfer fee.  These fees usually flirt in the range of 2.5-3.0% of the total balance transfer.  If you’re carrying a balance of $3000, at 3%, you’re going to be paying $90 on top of you’re existing balance.  Just make sure you do the math before you decide.

0% Purchasing Cards

These are plans that allow you to do most of your purchasing without collecting any interest.  These types of zero percent credit cards should only be considered by a debt free customer.  If you’re already carrying a heavy balance on an existing card, this will likely only get you into trouble.  Like its cousin, the balance transfer card, purchasing cards also come equipped with catches:

• This should sound familiar – don’t spend what you aren’t positive you can pay off before the 0% rate expires.  The same consequences apply as previously stated.
• You’ll notice that above, I mentioned “most of your purchasing” can be done without accruing interest.  Read the fine print, people.  If you’re an online gambler, into porno, instant cash advances, or even buying gift vouchers, you may void your zero percent rate by using your card for any of the above.  Before signing up, make sure you know what spending is considered contract-voiding.

That should be sufficient enough for a basic understanding of zero percent credit cards, and how they work.  You’re now aware of some of the benefits, as well the possible consequences of choosing to use a credit card offering a zero percent interest rate.  Explore the site for further information, and please spend wisely!