0 Purchase Credit Cards – Understanding How To Qualify For 0% Credit Card Purchase Offers
When used wisely, a 0 purchase credit card is a very useful financial tool to augment your spending. However, it is not a panacea for your budget woes. Although you do not pay interest for an extended period, you have to still pay the required minimum monthly payment regularly. This is because you are still required to make the minimum monthly payment, no matter what the status of your account may be.
There are a number of advantages of having 0 purchase credit cards. If used wisely, these can help you overcome your financial difficulties to some extent. One advantage with these cards is that they offer an interest free or almost interest free period for a certain period of time. This allows you to buy stuff during this interest free period at discounted rates. Some of the things that you can buy during this period include new clothes, new bags and other items.
The biggest disadvantage with these credit cards is that they usually come with a series of charges. You are charged for the interest period, the annual fee, the annual percentage rate (APR) and various other fees. Many people prefer to get zero interest credit cards in order to avoid these additional charges. However, these cards generally come with a higher APR than normal credit cards. This means that your total interest payable over the course of the interest free period will be much higher than it would be if you were to go for an ordinary credit card.
The reason why you need to look into the details of these 0 interest credit cards is because you do not want them to run out of credit as soon as the interest free period ends. This means that you should not get one of these 0 purchase credit cards if you do not have an income which is high enough to pay for a regular credit card. You should also consider the amount of money that you would be able to charge on a 0 purchase card. If you have a very limited budget, then this is probably not a wise idea.
In fact, getting 0 interest credit cards when the interest free period is ending is something of a gamble. These credit cards attract a lot of applicants who cannot afford to pay regular interest on their purchases. In fact, there are many of these 0 interest credit cards which have a very low interest rate. These introductory rates are good deals for the customers, but the users need to exercise caution before making long term commitments. If you decide to use these credit cards, you must ensure that you can afford to make your monthly payments.
Another disadvantage of 0 interest credit cards is that they force the consumers to spend a large part of their disposable income, which is otherwise left idle because of other expenditures. Most of the time, people end up spending their entire savings just so they can purchase the necessities. They are unable to make the monthly payments because of the 0 interest period. This can be risky because once the interest period ends, they will be charged a high interest rate once again.
Credit card companies are not too happy with people using the 0 interest period as long as the interest free period ends and they still have to face the charged interest once the introductory period is over. Hence, they implement certain strategies in order to protect themselves from these people. One such strategy is a so-called “reverted rate”. A “reverted rate” is a higher interest rate once the 0 interest period ends.
In order to use the 0-purchase credit cards, you have to complete the application process through a website provided by your credit card issuer. Once your application is approved, you are automatically qualified for the offer. Along with completing the application process, ensure that you pay off the full minimum payment required. If you fail to do so, you may end up being declined for the card. You should be aware of the eligibility checker and ensure that you pay it down to prevent the credit card company from assessing an additional late payment penalty.