Credit Card Applications for Zero Percent Deals

Credit card companies are using all means necessary to attract new customers. Zero percent credit cards, no annual fee credit cards and instant approval are just a few of these methods. These methods of getting a credit card can be a godsend for the responsible credit card consumer. For instance, they can pay off existing debt or get a no-cost loan. But beware...if you stumble-bum your way into the pitfalls of the card's penalties, you can be in an even worse place than you began.

One of the most aggressively used tactics by credit card companies is the zero percent transfer card, also known as the balance transfer credit card. This tactic has surfaced as a result of the competition between credit card companies and their need to garner the most customers. The name of the game with this tactic is "the more the merrier." The credit card companies are gambling that you, as the customer won't adhere to the stipulations of the agreement, thus forcing you to pay the penalty. This is why on almost a daily basis, your mailbox is packed with these types of offers. It's simple...it's a numbers game.

Here's how the balance transfer or zero percent deal works:

• The credit card company offers you the opportunity to transfer balances and for a fixed period of time, there is no interest.
• If you pay off that transferred balance during the "fixed period" you save all of that interest. If not, you can find yourself in the same boat you were in before

American Consumer Counseling, a non-profit credit counseling service, warns though that the zero percent balance transfer is not available to everyone who applies. If you have bad credit or poor credit, you likely won't get the deal. This type of credit card is only given to those customers that pay their bills on time, have good credit and meet other criteria set up by the company. But even if you get the credit card, if you don't pay attention, you can pay steep penalties: Do your research. Here's a list a things to look for when applying for a zero-percent or balance transfer deal:

• First things first...know you need to know what the length of the introductory rate is. If you can't pay off your transferred balance on time, you'll just be paying interest again. That's what got you into this mess in the first place. Make sure that if you can't pay off the entire amount by the time the zero percent period expires; make sure the APR is low.
• Next pitfall to watch out for - balance transfer fees. Sometimes this fee can be more than the interest that would have accrued with your existing APR on your current card.
• The number-three pitfall to be aware of...the ever popular late fees. Zero percent deals can be particularly nasty when it comes to late fees. Some credit card companies have even been known to institute a huge interest increase with each late payment.
• And finally...New Purchases. Most zero-percent credit card deals do not apply to new purchases. The zero percent only applies to the transferred balance. Know what your interest rate is on new purchases. If you can't make the payment, don't use the credit card for new purchase until you've paid off the transfer.

But now that you're scared out of your mind...relax. Do your research. Set up a plan that you can stick to before you make your decision. Make your payments on time...that's what got you into the fix you are in now. Don't make any new purchases; it can offset any progress you've made. And most importantly...KEEP YOUR EYES OPEN FOR THOSE HIDDEN FEES! Read the terms and conditions carefully and then submit your credit card application.

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