Zero Percent Visa
Before you get too excited about paying zero interest on a Visa card understand how they work and how they can trap you.
What to watch for in a zero-percent Visa credit card?
Visa, like many of the large credit card compies like American Express, Discoiver and Citibank promote their credit card programs with a zero percent interest rate. These are suitable for anyone who has a strong credit rating. Even so there are some quidelines to follow, then a zero percent interest rate is simply unbeatable. Follow the rules and you save. But one mistake and your low interest period is over, done and gone.
What happens if you mess up?
You will end up paying a rate that is actually much higher that other standard cards. And the terms make it next to impossible to back out of.
Take a closer look at how these cards work.
Make sure you understand every detail associated with the interest-free period especially for new purchases AND the balance transfer amount. Wirte down the exact date at which the zero interest rate ends. Then take a hard look at the interest rate that you will be switched over to after the promo period is over.
You should not treat this card the same as your other standard cards. Do not use this card for your shopaholic trips to the mega mall. If you do, you will regret paying the huge interest fees on those great deals you found. It will wipe out any savings you made on the purchase.
Extra Fees
Some of these cards will charge a fee for every balance amount that you transfer into the card account. These fees are as high as 3 percent of the transfer amount. Some issuers put a ceiling for the fee at a range from $35 to $50. Try to stay away form cards with these heavy transfer fees.
Late Payments
Do not miss a payment! Miss one payment date and your zero-percent interest rate is gone forever.
Manage all your credit cards
Pay attention to all the other credit cards you use. Some issuers will watch your credit rating on these cards and then increase your interest rate if you fall behind on payments or overdue amounts.
2005 BICCO MEDIA - 1