A zero percent interest credit card can be tempting. What’s not to like about avoiding interest piling up on your purchases? However, before applying for one of these cards, make sure you think it through. Here are some things to consider before signing on the dotted line.
The Fine Print
Not all zero percent interest offers are created the same. Make sure you read the fine print so that you know exactly what that “0% APR” applies to. Here are two of the most common variates:
As USA Today reports, while a zero percent interest offer sounds great, remember that you still have to make monthly payments. And the catch here is that if you’re late — even by a day — on a payment, your issuer could cancel that zero percent offer and reset your card to a typical APR.
Timing is Everything
That no-interest offer doesn’t last forever. Once the introductory offer ends — usually between six and 18 months — interest will be charged to any balance left on the card. And guess what? It’s up to you to remember when that deal ends. Your card issuer will not be reminding you. Make sure you have a calendar reminder set for when your deal ends so you don’t end up getting hit with interest.