Way back in 90s, many UK credit card users would not have believed that very soon they could get a credit card giving them 0% interest. But today, a 0% interest on a credit card is a fact.
How Did 0% Interest Credit Cards Come About? : 0% interest credit cards have been devised by UK lenders to beat the competition. During the last decade, the UK credit card industry has witnessed massive growth, with more than 1,300 card issuers in the market. To take away business from the more traditional card providers, some of new credit card issuers offer 0% interest on their cards. To face the competition, the other credit card issuers have started charging 0% interest. As a result, 0% interest credit cards have become a norm in the UK credit card market.
Understanding The Meaning Of 0% Interest: Before rushing to get a 0% interest credit card, you have to understand what it means. Actually 0% interest does not mean 0% in all cases, but is applicable only in particular conditions. So it is essential that you check to see if the 0% interest offered is suitable for your situation.
Taking The Benefit Of 0% Interest: A 0% interest UK credit card will definitely help you. But you have to ensure the scheme actually meets your needs. Hence give a special thought to: if 0% is applied only on balance transfers when you transfer from your current card issuer to a new one or if it is applicable in all cases. Most likely, the 0% interest will not be applicable for all debits on your card. E.g. cash withdrawals on your card will attract interest rates that are more than the advertised APR. Also, some credit card providers won’t give the 0% interest on any purchases you make. On the other hand, some card issuers will apply the scheme on new purchases, but not on balance transfers.
Validity of the 0% interest offer: The 0% interest is not an eternal offer. After some time it will end. This time frame will vary between the card issuers, so always check this out. Don’t buy expensive items with your 0% credit card if the validity period is very short. Lastly, make sure you do not lose the right to the 0% interest. E.g. some UK credit card providers take away your right to the 0% interest, if you don’t repay on time.
With the increasing competition, many UK card providers are coming out with many different promotions to get your business. This makes it all the more important for you to check the terms and conditions of your credit card thoroughly to ensure you don’t wind up paying interest when you thought to the contrary. Always remember there is nothing like an industry standard offer in the UK credit cards industry.