If you are looking to get a 0% credit card, you should shop around for the best offer. There are many that offer 0% on transfers, 0% on purchases or both. Be sure to check the small print carefully. There is usually a onetime charge or fee for transferring a balance to the credit card. The going rate is about 2% of the amount of the transfer. This amount will be added onto the balance owed.
If your credit card does not have 0% for purchases, do not use it for any new purchases. You must continue to pay off the balance on the card, however. What you want to end up with is a zero balance by the time the 0% rate expires and the new APR (annual percentage rate) kicks in. If you get to the end of the 0% rate time and you still have a balance you will be charged interest at the rate agreed upon at the time you got the card. You have two choices at this point. You can keep the balance on the card and pay the interest or you can get another 0% card to transfer this balance to. Keep in mind you will pay the 2% fee to transfer the balance and see what deal works best for you. The worst thing to do is nothing. Many people just forget about the time-period and don’t realize they have slipped out of the interest free period.
There are sometimes other fees or penalties associated with your credit card. You need to read the fine print for your card before you get it. There are many credit card choices out there now and they are offering many great incentives to choose their card. Try to choose a card with no annual fee. These are fast becoming a thing of the past. If you want to use your card to withdraw a cash advance check on the costs first. Many have steep fees associated with a cash withdrawal. If you use your card abroad, you can expect to pay a currency conversion fee. Usually this fee is around 2.75% of the transaction. There are several cards that do not charge this fee, among them Nationwide BS and Lombard Direct.
When shopping for a card, compare rates, dates, penalties and incentives to make sure you have the best deal possible for your situation and be sure you know the details of the card.
Eligibility for offers for 0% credit cards usually (but not always) depend on the credit score of the applicant. If you have a high credit rating, you're much more likely to qualify. It's worth applying, though, because usually they'll offer you a low-interest credit card even if you don't apply for the zero-interest offer.
Some of the top no interest credit cards offered in the UK include Citi Platinum Select Card, which offers 0% APR on balance transfers and purchases for a period of 12 months. They offer ?0 liability on unauthorized purchases and do not charge any annual fee. The 0% card has a regular APR of 10.74%. Chase Platinum Credit Card, too, offers 0% credit cards for 12 months or for 3 months, depending on the credit history of the applicant.
Blue from American Express features a 0% introductory APR up to 15 months and charges no yearly fee. The card's regular APR is about 11.74% and applicants do not have to have an exceptional credit record in order to get this credit offer.
There is also Blue Cash from American Express, which offers 5% cash back on all qualified purchases. This offer for their 0% credit cards is for six months and they do not charge an annual fee.
With Value Miles Platinum Visa Card, (a frequent flier credit card), the card holder can earn one value mile for every dollar spent. With 24,000 miles you earn can get an airline ticket for any nearby destination. They also do not charge yearly fees and the 0% interest applies to the first 12 months.
HSBC Platinum Master Card offers 12 months of 0% APR and it benefits include unlimited purchase protection and insurance for travel accidents. Their regular APR is 10.74%.
Citi Diamond Preferred Rewards Card offers a ?50 gift card and for every ?1 spent on purchases in drugstores, supermarkets and gas stations can card holders get 5 reward points and 1 point for every other purchase. Of a similar type is the GM Flexible Earnings Card, which offers 0% introductory APR for a year which presents a full one-percent cash back choice, otherwise the cardholder can choose a one-percent earnings towards any new GM vehicle.
Other companies that offer 0% credit cards also include Starbucks Duetto Visa for six months and Northwest Airlines- WorldPerks Visa Platinum Card, which has a credit line up to ?7,500 and a 15,000 miles annual WorldPerks travel reduction. The Northwest card does charge an annual fee of ?55, though.
Copyright 2008 0% Credit Cards UK Guide Articles By Kate Spencer. All rights reserved
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