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  #1  
Old 10-07-2006, 09:39 AM
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sweet_mayhem sweet_mayhem is offline
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Default 0 interest credit card

has anyone of you or someone you know experienced handling a 0 interest credit card? how did it go?

Last edited by sweet_mayhem; 10-07-2006 at 09:45 AM.
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  #2  
Old 10-14-2006, 03:16 PM
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Plumley Plumley is offline
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Default Re: 0 interest credit card

Do you mean a card that charges no interest on your unpaid balance for a specific period of time as a promotion? They're great if you have debt you can pay off during the promotional period. If not, be prepared to move the debt to another card because the interest rate will shoot up as soon as that period ends.
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Old 10-18-2006, 02:23 AM
4silverstrea 4silverstrea is offline
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Default Re: 0 interest credit card

Yeah, so what’s the point. It is a waste of time to transfer the money. I had a chance to do this, but to me, it would be pointless if the interest rate shot up to more than my 10% Select Visa card.
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Old 11-29-2006, 06:11 AM
burfi burfi is offline
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Default Re: 0 interest credit card

I do not think that there is any credit card that works on 0% interest. How else would they make money???
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Old 02-18-2007, 07:05 PM
riskey58 riskey58 is offline
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Default Re: 0 interest credit card

I have never heard of a credit card with 0 interest. Is it something worth looking into?
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Old 02-20-2007, 10:23 AM
nangel78 nangel78 is offline
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Default Re: 0 interest credit card

I have not had one, but I do think they would be good for someone who carries a low balance and pays it off each month.
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Old 02-20-2007, 11:20 AM
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taiarain taiarain is offline
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Default Re: 0 interest credit card

A few things:

This could be a post asking about cards that are lines of credit that you have to pay off monthly.

0% interest balance transfers can easily be worth the effort to transfer - even if you cannot pay the complete debt off before the promo expires. However, you need to ensure that the interest you would have paid during that time period will exceed the transfer fee.

CC companies rake in money on every CC transaction - regardless of whether or not the consumer ever pays interest - via merchant processing fees. There's a culture of cross-subsidization that most of our society has absolutely no clue they're contributing to.
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Old 02-21-2007, 10:01 AM
deliveryman deliveryman is offline
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Default Re: 0 interest credit card

0% interest cards are worth the trouble, but if you are carrying a lot of debt, it's really not any kind of solution, but just a bit of breathing room. Sometimes they charge a transfer fee, so you should do the math and see if it makes sense.

Sometimes you can move around a balance between several 0% cards, each after the initial 0% period expires. Again, unless you're just trying to make some money on the float, these are really just sort of gimmicks to pull you in.

Last edited by brian; 02-23-2007 at 06:46 AM.
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Old 02-21-2007, 11:49 AM
nangel78 nangel78 is offline
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Default Re: 0 interest credit card

It could be probably help with some debt control in getting lower payments.
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Old 03-07-2007, 06:03 PM
www.BalanceTransfer.cc www.BalanceTransfer.cc is offline
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Default Re: 0 interest credit card

Quote:
Originally Posted by burfi View Post
I do not think that there is any credit card that works on 0% interest. How else would they make money???
The interest-free period doesn't last forever. Once the interest-free period expires, you would be subject to the card's standard or "go to" annual percentage rate (APR).

The good news is that as long as you keep your credit score high, you can "surf" 0% deals and avoid paying interest on your credit card debt for some time.
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Old 03-12-2007, 09:08 PM
peterplanchet peterplanchet is offline
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Default Re: 0 interest credit card

The zero percents are great. I just got an offer from WaMu for 0% on transfers for a full year. so far,its been easy to find other 0% rates once the first ones dry up -- but that seems to be changing.

--Peter Planchet
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Old 03-13-2007, 08:47 AM
fiscalphil fiscalphil is offline
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Default Re: 0 interest credit card

i have used these, the companys offer 0% to tempt you in. If your smart you can use it to you benefits and pay off debts interest free. when the 0% runs out just find another one in the UK its called being a rate tart
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Old 03-22-2007, 04:50 PM
Mark A Mark A is offline
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Default Re: 0 interest credit card

Too many applications can have an effect on your credit score though, better to look for one with a low APR and stick to it. If you pay off your card every month it doesn't matter what the APR is since the company can't charge you interest.
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  #14  
Old 03-24-2007, 07:58 PM
Dru Dru is offline
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Arrow Re: 0 interest credit card

0% credit cards may, or may not charge a transfer fee. It will depend on the bank, and the offer they want to give to you. Time will also vary from 3-12 months typically before the rate increases, and some will still offer a very reasonable rate if you are a good credit risk. Read the fine print before you apply for the card. Once you receive the card, see if it still is what you expected it to be. It is very common for an advertisement to say one thing (up to $5000 limit), and the actual offer to be different (Approved for $1000) once they review your credit file. If you do not like the final offer, refuse the card and do not use it. Contact the offering bank and let them know (or cut it and mail it back). They will have nothing to report on the credit file so it will not impact your credit score.

Also Beware: Some collection companies will work with banks to send out a card and old debt will be transfered to the new card automatically. This will pay off the old debt, which you may not have intended, giving it new activity on your credit report, and a card you cannot use. Know who you are dealing with. Other tricks include sending you several cards with small limits, annual fees, initiation fees, credit insurance fees, and more. A $300 card will max out the first time you use it and now you have over limit fees, unpaid balance fees, and possibly late fees when it is more than you expected. Yet next week, they will send you another $300 limit card to charge you fees all over again. Some banks are making huge profits, in fact their primary income is now from these fees.

So, how/why would they only charge 0% interest? The fees are just part of the answer. Another part of the answer is the rate hike. If you are late on your payment, even an hour (they may have a 12 noon cutoff), your rate will jump to the maximum amount, sometimes as much as the high 20's or even into the 30% ranges. They have it all figured out how to get as many as possible to miss these due dates and times. You think you have the weekend, or a holiday to give a day? Guess again. This is one time where the bank is not closed for business. And that late payment does not even have to be with this card! IT COULD BE WITH ANY ACCOUNT THAT REPORTS TO THE CREDIT BUREAU! They use what they call universal credit reporting, which means any lates, with anyone, count against your rate.

But that is also just part of the answer to 0% interest. The biggest thing is... The money didn't cost them anything to get! In fact, the more credit they show on their books, the more money they can get to loan to someone else. This is a bit complicated, but it is called fractal lending. Banks are only required to keep a small % of their total assetts on hand. Each time they write a credit card contract, they are allowed to show that entire amount on their books. Even though you have not used the entire $5000 limit, they show it as though you did, because you could at any time. This gives them the ability to artificially inflate the banks net assets, and since they only need a small percent of the money to stay in-house, they trade those book credits to the Federal Reserve for hard dollars to loan out. The cycle repeats itself over and over many times and it didn't require the bank to raise any capital of its own, to have millions to loan out.
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Old 11-18-2007, 05:10 PM
Easy To Get Credit Cards Easy To Get Credit Cards is offline
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Default Re: 0 interest credit card

It will bite you like a shark.
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