Are Credit Card Introductory offers A Good Deal?

Each day we are inundated with credit card offers. Whether we see ads on line or they come in the mail, there are numerous options for us to choose from. Many credit card offers come with some type of introductory offer, whether it be a balance transfer deal or a low introductory interest rate or more. The question is, are these introductory offers worth it? Or will you actually be paying more in the end?

What You Need To Look For in 0% Introductory Offer

When it comes to introductory balance transfer credit cards, the buyer needs to beware, or at least be cautious. Never go on the face value of what is in bold print. Instead, you will have to dig deeper and read the fine print in order to find out what the credit offer really entails.

Many cards will offer a balance transfer introductory deal with 0% interest, for example. On these 0% APR credit cards you will need to find out exactly how long the low rate will last. Next, when the intro rate has expired, what will you be paying then? While that introductory time period might have been great, it will eventually expire and on some cards your interest will return to a level similar to what you are currently paying.

Finally, check to see what the balance transfer fee will be. The balance transfer fee is most often a percentage that the credit card company will charge you on the total amount of the balance that you are transferring. This, in some instances can be as much as 5%. Especially if you have a high balance to transfer, that fee can be a large one.

There are also credit cards that offer low introductory rates on purchases, rather than balance transfers. With these, again check out what your interest will go up to when the card’s intro period is up.

When 0% Introductory Offers Are A Good Deal

There are times when you really should consider cashing in on a great introductory deal. If you have credit card debt, transferring your balances to a no interest introductory card, could really save you money, especially if you can have the balance paid in full by the time the introductory period is over.

Another time an introductory offer may be a good deal is when you are making a onetime large ticket item purchase. If you cannot pay for the item up front, but have so much you can set aside per month, a 0% APR credit card offer might save you a few hundred dollars in interest. Just try to pay off the balance by the time the low interest rate expires so you don’t end up paying for a 2011 vacation in 2013.