There Are Two Types Of People Who Might Consider Applying For 0 Interest Credit Cards

Category: Finance, Credit.

There are two types of people who might consider applying for 0 interest credit cards. The second is the wary consumer who believes that 0 interest cards must come with a catch and so holds off on applying for them even though the absence of interest on debt would be nice.

The first is the person who is desperate to get a low interest rate on a credit card and won t bother to read the fine print before making an application. Both of these types of consumers can benefit greatly by understanding credit card laws and how they impact 0 interest credit card lenders. What many consumers don t realize is that there is a whole system of laws which control the lending practices of credit card companies. Credit Card Laws. The goal of these laws is to protect credit card consumers. For example, it is a requirement by law that credit card companies offering 0 interest cards must reveal to you what the interest rate is going to be after the introductory zero interest period runs out. However, credit card companies have found ways to make it so that consumers don t necessarily know these laws.

However, credit card companies have the right to insert that information into lengthy pamphlets with a lot of other details in them so it s only the smart credit card consumer who benefits from knowing this law. The reason that everyone wants 0 interest credit cards is because anytime that you pay interest, you re essentially giving a company money just for them allowing you to have a debt. The Importance of Interest Rates. As you can see, interest rates are very important then. The smart credit card shopper is not only going to try to get a 0 interest credit card but is going to try to get one that s going to remain 0 interest for a long time. The higher the interest rate is, the more money that you re paying to a lender for basically no reason at all. How To Take Advantage of the Law.

Those disclosures are there to protect you as a consumer by providing you with the information that you need to make informed choices about applying for and using your credit cards. The best way that a 0 interest credit card user can take advantage of the law is to be aware of the disclosures that are required by the government. In the case of the law discussed above, it s important for the consumer to read the fine print in applying for 0 interest cards. It also reveals important information about fees that are associated with things like missed payments on 0 interest cards. That fine print details the length of the zero interest period as well as what the interest will be after that period is over. A Note About Online Applications.

However, many people complete their applications online. It s easy to see the fine print when a pamphlet is sent to you in the mail. Before hitting" I Agree" on any online application for 0 interest credit cards, make sure that you ve read and understand what you re agreeing to. Those laws are there for a reason but they only work for people who opt to protect themselves by learning what the law does to help them.