0% Credit Card Interest Rate? Fact or Fiction?

by : Charley Hwang

Credit cards and interest rates go hand in hand. With 19% APRs wrecking bankrolls like clockwork; it is surprising to know that a 0% credit card interest rate exists. However, there are 0% interest rate credit card offers out there, and the reality of it all is that people may enjoy that privilege without switching to another credit card provider.

Lots of credit cards don't have any annual fee assigned to them. In exchange for that annual fee, an interest rate structure is solidified in place that is applied to the outstanding balance the card accrues over a thirty day period. In case payments are not made on time, the credit card company will impose a higher interest rate starting on the next month's bill. Credit card companies pray for people to miss a monthly payment for two in order to cash in on interest on the outstanding balance.

In order to be offered a 0% credit card interest rate, you must pay off your credit card on time, every time. With no outstanding balance to impose interest on, a 0% credit card interest rate is very possible.

Yes, there are many advertisements out there touting credit card plans with 0% interest rates that are extended for a while after your account is opened. For instance, a new account that introduces a 0% credit card interest rate for the first six months may require you to make timely payments every billing cycle. With this in place, balances can be transferred from other cards onto a new account. The only provision is that card users must pay off the balance within this six month period. A 0% interest rate can reduce debt and help increase your credit score to your credit card provider's dismay.

If a 0% percent interest rate offer is out there for the taking, make sure you carefully read all terms and conditions. Learn how long the 0% credit card interest rate lasts and figure out what you need to do to keep that 0% interest rate kicking for the longest time. By carefully reading the fine print, you will be best equipped into knowing if that latest 0% credit card interest rate offer is right for you.