Avoid These Traps When Choosing Between Rewards Cards And Interest Free Credit Cards

Shopping for balance transfer offers?  Take a look at these strategies before you consider a no interest credit card offer.  Firstly, zero interest credit cards are not really 0 APR. Secondly, an interest free credit card could, in the long run, cost you much more in terms of interest than if you had simply applied for a traditional credit card with a low interest rate and good terms. 

Let’s look  at how to properly evaluate each credit card application and pick the one that best suits your lifestyle.

0 APR Credit Cards

When searching for a 0 credit card offer, many consumers fail to carefully read the fine print.  Often, the fine print limits the interest free period to a few months.  Also, the terms and conditions usually level a surcharge of up to 5% on the [0 balance transfer, 0 APR balance transfer, 0 interest balance transfer, balance transfer].  So much for a zero interest balance transfer.  Furthermore, interest will accumulate later if you carry a balance – often at a very high APR.

Obviously, this can cost a lot of money over the long term if you carry a balance.  Before you accept that [0 balance transfer, 0 APR balance transfer, 0 interest balance transfer, balance transfer] offer, you have to read the fine print and at least find out the APR on residual balances. 

Rewards Charge Cards

My buddy loves to hunt and fish.  So, he carries a rewards charge card issued by a sporting goods outlet that he likes.

He uses his rewards charge card in order to qualify for special offers, discounts and other promotions.  These promotions, discount and vouchers allow him to get great deals on top name brand sporting goods equipment.  Also, other retailers will often grant discounts and other promotions when he uses his rewards card with them as well.

Since he does not carry a balance, my friend can use his rewards card without considering the interest rate or other terms.

Zero Interest Or Rewards? Which Is Better??

Each consumer needs to evaluate all credit card offers in light of their own unique financial decision.  If you do not carry a balance and have special hobbies or interests that are reflected in a particular rewards card, by all means fill out that credit card application.

On the other hand, if you are trying to pay off debt, and intend to shift your balance after the interest free period expires, then you might be better off trying to find a 0 APR balance transfer offer that suits your desire to be debt free.

At the end of the day, you are the only one that can make the decision that best suits your financial situation.  So, choose wisely.  The money does belong to you after all.

Technorati Tags: 0 apr credit cards, 0 interest credit cards, 0% credit cards, interest free credit cards

Tags: 0 apr credit cards, 0 interest credit cards, 0% credit cards, interest free credit cards