Making The Most of 0% Introductory Offers
With so many different types of credit card out there, it’s often tricky to decide which is the best one for you. Like many people, you’ll probably be attracted to 0% interest introductory offers, so here are some tips to make sure you get the best out of the deal.
Types of 0% Introductory Offer
Before you decide which card to go for, you have to choose which 0% deal you want. There are two kinds. The first is the 0% balance transfer, which means you can move an existing debt onto the new card without having to pay interest on it for the duration of the introductory period.
Then there’s the 0% on purchases deal. With this card you won’t be charged interest on your purchases during the introductory period.
Mixing The Two
One possible problem with cards that offer 0% deals on both balance transfers and purchases is that the purchase period is normally shorter than the balance transfer period. This means that you’ll be charged interest on your purchases sooner. The problem with this is that none of your repayments will count towards clearing the purchase debt until you’ve paid your balance transfer debt. For this reason it’s best to use separate cards for transfers and spending, or get one with equal introductory 0% periods for both.
How Long is the Introductory Period?
Make sure you know how long the offer is for. It goes without saying that the longer the time period the better. Balance transfer periods used to be around six months, but you can get much better deals these days.
When the introductory period is over, you’ll be charged interest at the card’s standard rate. The best case scenario would be to clear the debt before the introductory period is over, but it’s best to go for the card which has the lowest standard interest rate just in case the best laid plans don’t come about!