The fast shrinking economy has caught many people in a vise grip. They find that more and more of their disposable incomes are gobbled up mostly by amortization and monthly payments that they do not seem to know what to do anymore except tighten belts.
But for those who are imaginative enough and alert enough in finding new ways to stay their heads above water, one good option is applying for credit cards with zero percent interest.
Major banks are suddenly offering zero percent interest in a mad scramble to acquire clients with excellent ratings. The market is so saturated they are actually desperate for customers who pay on time and with immaculate ratings.
If you stay current and follow all the rules, then you are in the best of all possible worlds. You get to use a credit card at virtually no expense on your part as long as you pay off all balances every month. But there is a catch to that offer and you need to be careful.
The bad economy today has virtually touched everyone adversely and even those whose ratings were previously excellent now miss a payment or two. These offers of the best credit card deals are one of the inventive ways for issuers to still generate profits.
The best deals are not available to just about anyone. You need to have a really good, if not excellent, rating to qualify for these offers. Issuers are also in the habit of changing their terms every few weeks, so be sure of the specifics and ask.
Most of the credit cards zero percent interest on offer today refer only to balance transfers only. But before you celebrate for grabbing what you think is one of the best rates ever, you need to look at the fine print first before you start spending.
Watch out for those card fees when you make a balance transfer. Card hoppers who think they have gotten the best interest rates might be for an unpleasant surprise. Most issuers charge a hefty one-time 3% and as high as 5% transfer fee capped at US50.
For you to avail of all these best deals, you need to be a good juggler. It means you have to watch the due dates of all your payments. Otherwise, a late payment will jack up your interest rates very quickly.
In other words, those coveted interest rates can evaporate in a flash and you will be stuck with high interest rates. You can be slapped with late fees and a penalty interest rate of as high as 20% per year.