Despite the fact that credit cards with zero interest give you the option to pay off your balances without the extra interest cost, the zero-rate offer is not a permanent deal.
When the teaser rate expires, you will be paying for the regular rate of interest along with other credit card fees. Therefore, do not judge a credit card based solely upon the introductory rate. Rather, find out what else awaits you if you do decide to sign up for the offer.
Listed here are credit card fees that you need to be aware of before choosing a zero interest rate credit card:
The annual fee is what you pay for each year to keep your account active. Some Issuers impose a low annual fee ranging from 15$-$30 while other credit cards may carry annual fees of $50 up to $100. Many credit cards with reward programs carry more expensive annual fees to make up for the bonuses and perks. The best credit cards are the ones with low interest rate and no annual fees so you can save from paying a yearly cost.
Minimum Finance Charge.
A finance charge is the minimum fee that a cardholder must pay at the end of the billing cycle. It is a monthly fee required regardless of the amount of your balance. Some cardholders choose to pay only the monthly minimum due which can be a risky habit. The smartest way to manage your credit card charges is to pay off your balances in full each month. Should you need to carry over a balance, try to pay off as much as you can so that only a small amount of debt is left in your account.
Balance Transfer Fees.
Do you need a zero interest rate credit card for consolidating credit card debt? If yes, be sure to check out the balance transfer fees. The balance transfer fee is usually a percentage from the amount of balance you transfer. Although you will enjoy the zero interest rate, you could be charged with an expensive fee for every balance transfer transaction you make.
Late Payment Fee.
As expected, credit card Issuers impose a late penalty fee if you fail to submit your payment on or before your due date. Credit cards that offer a zero interest rate usually have more rigorous terms particularly with regards to making payments. If you are late, you may incur expensive late penalty fees. Also, the zero interest offer may be lifted if you made even one late payment.Credit Limit Fee. Also known as the overdraft fee, this is the fee you will incur when you exceed your credit limit. All credit cardholders are advised to avoid maximizing their credit limit not only to avoid the penalty fees, but to protect their credit history as well.
. If you are a frequent traveler, you need to be aware of the conversion fees associated with your credit card. Currency conversion fees are extra costs that you will incur if you used your card in other countries. Watch out, some Issuers charge a conversion fee even for online transactions.