Instant Approval Zero Percent Balance Transfer Cards

0% Credit Card: Purchase vs Balance Transfer Cards

There are two types of 0% credit cards in the market. 0% balance transfer cards and 0% purchased cards. The rates of both of these are of special and promotional nature but still there is a significant difference. One must not get dazzled by the shiny and attractive rates being promoted by credit card issuers. Only when you understand the difference between balance transfer and purchase cards, you will be able to avoid the hidden fees and charges.

0% Credit Cards

Zero percent is just a marketing gimmick of credit card companies to lure new customers. If you take a closer look at the fine print, The 0% rate being boasted by is just for the promotional period of approx 3 – 9 months. After that, they start charging you “Huge” and “real” fees and interest charges.

You can not Borrow at Zero Percent!

There are no free lunches in the world, right? similarly, You can not borrow money on 0% interest rate. and fees on your credit cards are the only source of income for banks and credit card companies. No bank or credit card company can survive by lending money without charging anything for it

0% promotional rate is for limited time only

After the promotional period is over, the banks starts charging you with normal rates. Length of promotional period can vary from card to card and bank to bank. Generally it can be anywhere between 3 months to a maximum of one year(which is very rare).

Lower Balance First Rule

Since November 2009, credit card companies are applying the payments you make to lower balances first. This means that if there are two charges on your card. one for the 0% promotional rate offer and other is not covered under the promotional rate offer. the company will apply the payments you are making to the charge not covered under 0% promotional rate deal.This is not pretty as the purchases with high interest rates keep adding more charges to your card even when you are making payments. the payments are setting off the 0% balances that you transferred. huh!

They are Looking for Excuse to Charge More!