October 19, 2009
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Finding 0% APR CCs, Pt.4
Sincerely.Finally, some positive stuff. The topic of:
<(O)> Sincere Advantages: Of course you must qualify the claims and promises against the real credit card terms. For the savvy, it's all on the table for you. You know when the good deal expires. It's up to you to keep track that date (of course). No deceptions. Always call direct and ask simple questions like:
<^> Which credit card APRs are 0% (or the low figure you're looking for)? You may have to settle for APRs between 3% and 5%, but that's still very good.
<^> When a credit card offer has multiple categories (purchases, transfers, cash, etc.), ask if they all expire at the same time.
<^> With multiple rates, can you pay on the higher interest for amounts over the minimum credit card payment?
<^> Do Balance Transfer Fees apply? How much are they? Is there a "Cap" (limit to the highest fee they charge)? These fees used to be limited to $50, then $75. Today, caps have typically gone away but you may get lucky. If not, be sure and ask what the transfer rate is (3% is good, 5% not so). Just, figure out if paying that percentage all at once is worth it to you for a low-interest credit card.
<^> Remember, the whole deal goes sour if you break a rule. Never miss a payment. Never charge above your limit. Credit card lenders are starting to allow transactions to be declined to avoid the ugly consequences of slipping up. It's a good deal.
Note that the "good ole days" are gone away for the next few years. Credit card issuers are reporting losses in the billions of dollars every year. There's very little wiggle room left for them right now. Note also, that, according to the latest creditcards.com survey, balance transfer rates have jumped more then any of the other eight categories over the last six months.
Get 'em while you can.