0 Card Credit Introductory Offer

It is evident that the modern day credit card companies and banks are taking this age-old adage to heart. Why else would they come up with something like a 0 card credit introductory offer?

Introductory offers by these banks and companies are meant to make an excellent first impression upon the consumers. Who would be able to resist a tempting 0 card credit introductory offer, after all? Would you say no if you were offered an introductory offer of 0% interest rate on your new credit card?

How does a “0 card credit introductory offer” work?

0 card credit introductory offer is an unusual coinage of the term but denotes the fact that APR rates are 0% or nil on that credit card, at least for a specified period of time. Since it is an introductory offer, it implies that it is meant to promote the credit card and the offer will be for a short term. Usually, the duration of the offer is anywhere between six to eighteen months.

The 0% interest is mostly limited to the balance amount transferred to the new credit card, which means that no interest will be charged if you want to repay the balance that is outstanding on the new credit card. But this does not apply to any new debt taken against the new credit card. Taking a cash advance on the new credit card will cost you very high interest rates and this will not be covered by the 0 card credit introductory offer.

What is the best use of a 0 card credit introductory offer?

Intelligent credit card consumers tend to look upon a 0 card credit introductory offer as a fabulous opportunity to repay their debts that are outstanding on their old credit cards. There are many savvy credit card users who are constantly on the lookout for such offers and will not waste any more money in paying interest on their old outstanding balances.

For instance, let us suppose that the first credit card charges 18 % interest on the outstanding balance. Now if this credit card user comes across a 0 card credit introductory offer, he / she can save a lot of money that was supposed to be paid as interest in the process. This is the best way to make the most of such a magnificent offer. But this tactic will work only if the outstanding balance is paid before the 0 % interest offer ends.

If you ever you come across a 0 card credit introductory offer you should not let it go, especially if you are carrying an outstanding balance on your old credit card. Credit card companies and banks use these kinds of offers to entice new customers and that is why they extend the 0% interest rate offers for six to eighteen months at a time. It is up to the consumers to make the best of such limited time duration offers and save a considerable amount of money in the process.