Do you think getting a 0% interest credit card would be wise? Since you have to pay the money within a specific period, failure to do so would end up being quite costly. One company which gives you up to 26 months to pay the money you owe charges 28% interest beyond that day. I suppose they use this 0% interest offer to entice people to get the cards because they know eventually they get to make a lot of money. Is it worth risking paying ridiculously high interest rates when you could avoid it all?
I always avail of the 0% interest promo of my credit particularly sometime in November for the pre-Christmas sale when all credit cards have that promo. Last year we bought our TV and gas range on 0% interest with installments for 6 months. Just today, we bought Christmas decorations that amounted to more than $100 so I used the credit card for 3 months installment at 0% interest.
No - as credit cards of any description are generally a bigger liability than they are an asset.- particularly as they're primarily geared towards encouraging people to buy things that they really can't afford and the best way and only way of avoiding money problems is to prevent them from happening in the first place - by not spending money you don't have - its definitely not worth the risk. Simply because - as a credit card whether it is 0% interest or not is - from whatever angle you look at it - basically a loan - which to put it bluntly means - if you really need to borrow money to buy something - it generally means you shouldn't be buying it - as you don't have the money - the latter of which could prove to be a big problem with 0% interest cards. Particularly as - although they could be an aid if the full balance can be paid off before the promotional period ends - as there would be no interest to pay - because all 0% financing is almost always likely to be deferred or waived interest - any balance that isn't paid off prior to that time - will be whacked with a massive interest charge - which is not only - not a very cost effective means of purchasing anything - particularly as you'd land up paying way more for the item or items than you would have done had you paid cash in the first place - but more importantly the amount is often so huge that it may prove difficult to pay off - which can and does more often than not - lead to long term financial difficulties.
Those offers with "0 %" interest rates are not really what many people think they are. Yes, they appear cheaper to the buyer's eyes. However, if you think hard on it, there's already a prior agreement between the credit card companies and the product seller to come up with this kind of marketing scheme. So even if it's 0%, you'd be surprised to know you're actually paying more than the original price. If you have a credit card, though, it's a good enough bargain.
No I feel like the others are saying it's not a good idea for those promos are just for a limited time. Unless you pay what's due it's going to be a big APR later. To me it's better to get those rewards credit card and get cash back when you spend.
Using a 0% credit card allows people to buy high ticket items and spread the payment to several months. If you need a refrigerator now and you don't have enough cash, it's much better to buy the item on 0% credit terms rather than wait for the time you will be able to gather enough cash to pay the item in cash. If there's no difference in price between cash and credit card purchase, I would prefer to pay in 0% credit card installments rather than pay in cash. That way, I can still keep my money in the bank and just make the monthly amortization.
Credit card offers always have traps set in. Even if they offer 0% interest they would charge high amount as processing fee. The credit card I use is ready to help me buy costly items from net and I can repay it in monthly installments with 0% interest rate. But the fact is that while applying for it they would charge a onetime processing fee which is not less than 14% of the total amount and they are charging it in advance. It would increase along with the number of EMIs you opt for. The higher the number of EMIs, the more would be the processing fee you need to pay. Moreover, failure to pay EMI on time can attract huge interest and penalty. They need defaulters to impose high penalty and they would encourage you to make it in more installments. You may find it very friendly but they are setting a trap for you.
