Where have all the 0% APR Mail Offers Gone?
Not too long ago, it was impossible to open the mailbox without getting bombarded with offers for 0% APR credit cards. Today, its rare to find one every few weeks. While this development may be great for trees, it is yet another sign that the credit crunch is hitting the wallets of everyday consumers.
At this time last year, throwing out those once annoying letters imploring us to save with a 0% APR on purchases and balance transfers for a year was a daily practice. Sure, most of us ignored them. However, they served as a reminder to many to think about the high interest rates they were paying on their credit cards. For those who took advantage of the offers, a little piece of junk mail may have provided a few hundred or a few thousand dollars in interest savings.
As the credit crunch has worsened, credit card companies have severely cut back on the availability of easy, 0% financing. However, it is still possible to find these deals online-for the time being. For how long and to what extent major credit card companies will continue to offer 0% APR deals is a big unknown right now. What is known, however, is that credit card companies aren’t going out of their way to get you to switch your debt to their credit cards. And many want to lower your existing credit limits.
The best solution to the chaos in the credit and financial markets is to think like a Boy Scout, i.e. BE PREPARED. If you are carrying a balance on a credit card with an interest rate in excess of 10%, do a 0% APR balance transfer. If you plan on making new purchases you won’t be paying off immediately, apply for a 0% APR credit card. And if you want to make sure you have credit available when you need it, apply for an extra credit card just in case.
The future of credit card lending is uncertain. However, by acting now and getting the right credit card, you can prepare yourself for the days to come.