Interest free credit card
If you are thinking about getting yourself a credit card, why not begin with one that comes interest free for a limited period. By this route you can save money on interest fees you would have had to pay, while you see if credit cards are for you. Whats more you can spend the credit you have been given knowing that you wont be made to pay interest. In addition you might even be tempted to think that credit cards are a gift from heaven.
Think of when you are making a big buying. In general you can use your credit card to pay cash while you choose an easy repayment option that suits your pocket. It is quite unfortunate that credit card issuers dont indicate the actual APR payable once the interest free period has expired.
The perfect way to take advantage of this interest free period is to make a big purchase and pay it off before they start charging you for interest. Remember the interest free period varies. Some issuers give you a time period of six months while others give you 12 months with is plenty of time to pay off the debt you owe. By following this way you can make sure there are no nasty surprises waiting for you.
But the question now arises: How do you know which one has the lowest APR.
The excellent way is to first just browse around at all the major credit card issuers. That is where if you spot a long interest free period being offered, ask the issuer what APR they charge at the expiry of the interest free period and theyll tell you.
On the other hand if they choose not to divulge this information, then dont bother to hang around. Plenty of card issuers will oblige and tell you, but some unscrupulous companies may not, so that they can catch you unawares. However, it is always more than ideal to know beforehand what you get yourself into. To not do so is a fast way to get yourself into trouble. Credit card debt is pretty simple to get into but difficult to get out of. Furthermore heeding these warning calls will prevent you from becoming a statistic.
Moreover as competition in the UK credit card industry has consistently increased in recent years, credit card providers have been searching for more and more ways to attract customers to their own package of products. Most have gone about this by minimizing prices with credit card rates available today that would have been unthinkable just a few years ago. That is why it is now possible to find 0% credit card interest rates not only on balance transfers but also on purchases. While there is no doubt that these rates may only be available for limited introductory periods of a few months, it is easy to see how prices have continued to drop across the market as credit card providers have been searching for new ways to attract customers.
Generally speaking interest free credit card may sound like a couple of words that really do not belong together in the same sentence. And the point is that just a few short years ago, you would have been absolutely correct. There was a time not so long ago when there was no such thing as the 0% interest free credit card. At present however, they are everywhere you look, literally. Theoretically speaking you cannot even open your mail any more, or answer you phone without being offered some amazing sounding deal on 0% credit cards. In reality they are becoming more and more common and it is therefore important to realise the pros and cons of many of the most common deals that are out there so that you make sure that you get for yourself the very best deal on a 0% credit card possible.
The main thing to take into account in any case is that there are two main types of 0% interest that you will be offered and these are very different deals. Ideally the first will be 0% on balance transfers and the second will be 0% on purchases. According to experts it is needless to go into the difference between a balance transfer and a purchase but suffice it to say that there is a very significant difference and there will be many cases where one of these offers will be of great value to you while the other will be practically useless. The pivotal trick is to make sure you make sure what you are being offered and only sign up to a deal that you are pretty confident will fit your needs and benefit you as much as possible.
The ideal place to start looking for one of these interest free credit card is on the Internet. The fact of the matter is that in recent years the credit card market through out the world has really saturated itself with amazing sounding deals and the competition is so high among credit card providers now that it is really quite easy to get a 0% credit card.
The two exceptions to this point and the groups that will find it more difficult to get a 0% credit card will be people with bad credit ratings and people with no income. Hopefully, in either of these two scenarios, the situation will not last forever and you will merely have to wait a little while until your position improves and then you will have no problem at all getting 0% credit cards. The only big deal to remember with interest free credit card is that the free credit will only be for a couple of months and after this time yo`u will have to pay interest. And secondly, it is of utmost importance that everything you spend on that credit cad has to be paid back eventually so take care not to let that spending get out of control.
Dont despair in case if you are not accepted for many of the credit cards on offer. Theoretically speaking it may be your credit rating is not what some credit card companies are looking for.
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