US consumers are using credit cards less.
Keeping their debt levels lower when it comes to credit cards is the current focus for Americans nationwide since the recession. Many credit card issuers have evidently noticed this trend, as they are offering no-interest cards at an increasing rate. But those deals have a catch, as you would expect.No interest credit card offers
Nearly half of all major credit card issuers throughout the U.S. offering no-interest credit cards, the latter half of the year appears to be an opportune period for many consumers to jump on offers.No fees on credit cards for the first year deals
In addition to the considerable number of credit card companies offering zero interest, Waters noted many are also offering no fees for the first year of having the cards, as well as extended teaser rates.Your Credit score, and credit history are important to qualify for a no interest rate credit card. Going in and during the credit card use
Many banks and card companies are gearing a number of their credit card offers toward the high-credit-score demographic, who are the consumers who can mostly qualify for no-interest cards.If you have recently improved their credit standings may find you qualify for the zero-interest cards on offer.
So. What's the catch with interest free credit cards?
Well, you would think that not defaulting will keep your credit scores high.That can be a mistake, because no-interest rate credit cards, have clauses that say that if your credit score falls during the introductory period you get hit with interest charges of between 10 and 25 percent.
Keeping your credit score high is essential to keeping a no interest rate credit card active. And the credit card companies are betting on you falling off the wagon.
The catch in no interest rate credit card deals is in the fine print.
Source: Mr Mortgage
