When it comes to your everyday spending, a 0 purchase credit card is hard to beat. However, credit cards are products with a high risk rate so what risk remains when a card allows you to spread out your purchases? Read closely because there are a few things to consider before buying. If you need a solution to your Bad Credit Finance then look into these 0 purchase credit cards.
The first thing to consider is that these are limited time offers. These cards are meant to entice you into paying later. In this case, the provider hopes that the 0% interest rate will lead to you carrying the balance over a month with the ordinary interest rate and paying interest on your purchases overall. For this reason, it is almost always better to get rid of your 0% purchase credit cards and try to find another offer rather than borrowing with the same card again.
The next thing to look at is not all credit card transactions are equal. While purchases might be charged interest at a very reasonable rate of 0% on this form of plastic other transactions aren’t so lucky and are liable to be charged at a higher rate. Worse, since some credit cards pay off the lowest interest balances first, these higher rate transactions could be left building up interest even while you pay off your purchases.
The third problem is simply one of real life. How can you be expected to predict emergencies or a financial crisis? Using a zero percent purchases card requires a fair degree of certainty and that’s something which life, most often, just doesn’t provide.
There are various ways around this – applying for instant decision credit cards is one, or predicting with some accuracy, for example, for using for Christmas spending. In all, however, while these forms of borrowing might be good in a variety of imaginary situations there are considerably less practical situations where they’d be of genuine use. Or at least, more use than they would be effort.