A 0% credit card
Essentially means that you are not charged any interest on your purchases for a defined period of time. How long that time period is depends on the credit card company and the deal on offer. Whether getting a 0% credit card is worthwhile or not depends on your unique situation, what you want it for and how well organised you are when it comes to handling money and debt. Done correctly, 0% credit cards can actually save you money. However, if they are used incorrectly, you can land yourself in debt for a number of years.
Have a Reason to Apply for One
Getting a zero per cent card is worthwhile as long as you use it for the right reason. By this I mean that if you have fallen on hard times, getting any kind of credit card is not the right thing to do to help you to make ends meet at the end of the month. If anything, this can lead you into a spiral of debt that can be difficult to get out of. If however, you are in a reasonable financial position and you would save money by making a specific purchase with a credit card rather than paying in monthly instalments, this can save you money in the long run. For example, car insurance payments can often cost more long term if they are paid on a month by month basis. Significant savings can often be made if you pay for the whole year up front. By using a zero per cent credit card to pay a year worth of car insurance, assuming you keep up the payments, you can make significant savings.
Keeping track of things is of the utmost importance if you choose a zero per cent card. Ensure that at the very least, you make the minimum monthly payment required on time. If you miss even one month, you can be charged a steep fee and in some cases, can even loose your zero per cent deal. This means from that point on, the credit card company can charge you interest. If this happens, obviously you will lose any savings you made by choosing to get this type of card. It is of the utmost importance that you keep a note of your end date. For example, if your zero per cent interest deal ends in 18 months, make a point of setting a reminder so that it is impossible to forget. For example, you can set an alarm on your phone or computer a few months before the end date. When your end date is approaching, make a point of either paying off the balance completely, or transferring the balance to another 0% card.
The Best Card
Assuming you have a good credit rating and are likely to be accepted for a credit card, the best deal you can get with a zero per cent card is the longest deal you can get. Look for a card that has the longest possible introductory deal at 0%. In most cases, the maximum time period is about 18 months. This way you will get the maximum benefit from your card. Is it worth applying for a 0% Credit Card? Assuming you have met all of the criteria laid out here, yes it is.