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The pros and cons of a 0% interest credit card

The pros and cons of a 0% interest credit card

December 21, 2016
0% credit card

If you have problems with credit card debt, transferring your existing balance to a 0% credit card can be the solution. Such a card can offer you a much needed helping hand, but you should know that it’s not all milk and honey. Zero percent interest credit cards come with both pros and cons.

Pros of a 0% interest credit card

1. No interest

It’s always good to have no interest on your credit card. And, with 0% interest credit cards, you won’t have to worry about it for the duration of the introductory period. This period can be up to 18 months.

2. It’s ideal for large purchases

This is what 0% interest credit cards are known for. If you want to make a big purchase but you also need some time to pay it off, not having to deal with interest, even for a limited period of time, can be a huge advantage.

3. It can help you lower high-interest balances.

If you are carrying high-interest credit card debt, you can always transfer it to a credit card with 0% introductory APR on balance transfers. This way, you will have a certain period of time to get rid of that debt without accumulating more interest.

Cons of a 0% interest credit card

1. It doesn’t last forever

Unfortunately, that 0% introductory period doesn’t last forever. Once it’s finished, your card will revert to its regular APR, which may not be low. That’s why it’s so important to know the exact time when the introductory period ends.

2. Balance transfers aren’t always included

If you are looking to transfer your balance, you need to be careful when choosing a 0% interest credit card. A lot of them do not include balance transfers. Read the terms closely and make sure that balance transfers are also eligible for the 0% rate before you sign anything.

3. There’s no escaping balance transfer fees

Unfortunately, you will still have to pay a balance transfer fee. This is usually around 3%, so do the math first and make sure it is worth it.

4. You can lose it if you’re not responsible

If you make late payments, your issuer may end the introductory period. Not only that, but you may also be hit with a penalty APR, somewhere at around 30%.

Gary Morgan

Gary Morgan is a Britain transplant. Finance background, enjoys tea, politics and soccer (or football for everyone across the pond). Get in touch with him via email

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