Are 0 Percent Credit Card Offers Here To Stay?

If you've been following the credit card market then you already know that the 0% balance transfer credit card is one of the most popular offers for most companies. With all the competition among credit card companies to get your business, they've come up with all sorts of incentives to entice people to jump ship from one company to another. The most effective of these incentives is the 'low introductory rate' offer, where a credit card company offers a 'teaser rate' that is considerably lower than the standard APR. For the past several years, most credit card companies have offered introductory rates of 0% APR for up to a year, particularly on balances transferred from another credit card.

Lately though, there's been a lot of speculation that the 0% balance transfer card is a thing of the past. The reason? Credit card 'jumpers', who made a practice of moving a balance from one 0% balance transfer credit card to another at the end of the introductory period without ever paying it off. Citing 'abuse' by credit card rate jumpers, many of the companies have reduced the length of their introductory 0% balance transfer APRs, or added conditions to their 0% offers that are designed to keep takers with the company.

So, no, 0% balance transfer offers are not going away anytime soon - but the new conditions and changes make it more important than ever to compare credit cards before you apply for a credit card. Don't just skim the offers that you find - it's important to read through each and every word when you compare credit cards to make sure that you understand exactly the kind of deal that you're getting into. Some of the important things to look for when you compare credit cards or apply for a credit card include:

How long is the 0% APR valid?
Terms of up to a year used to be common - but those offers seem to have been replaced by those that offer the intro APR for six to nine months. A new development is '0% APR for the life of the balance transfer amount'. Make sure that you read the fine print so that you understand exactly which part of your credit card balance will be counted under the 0% APR.

What is the typical APR AFTER the introductory period?
Don't stop the comparison with the 0% balance transfer offer. That APR may ONLY apply to the original balance transfer amount. What about new purchases on the 0% balance transfer credit card? What rate of interest will they incur?

How are your payments applied?
In most cases, when you make a payment, the credit card company will apply the entire payment to the balance transfer amount.

What do you have to do to qualify for/keep the 0% APR?
Some companies may require you to make other purchases on your new credit card in order to keep the 0% APR, and all of them require that your payments be on time every month. Even one payment made one day late can knock your balance off the 0% APR track - and worse, will often incur all the interest that would have accrued to date on the balance.

At www.moneyeverything.com, you'll find all you need to know when it's time to apply for a credit card. You can compare credit cards to find the one that offers you the best terms for your needs, whether it's a 0% balance transfer credit card or a standard credit card with reward points. When you're ready to apply for a credit card, be sure to compare credit cards here at moneyeverything.com to get your best possible deal.