When I first heard of 0 interest credit cards, I was shocked and amazed. I mean, why would they offer that to you, it was like a free loan for months at a time. I got a credit card, and at first tried to exercise restraint, but soon I was using it for practically everything. I bought vacations, plain flights, my groceries, my new guitar, everything in it, thinking I'd pay it back later.
In the time I was 18 years old and playing in a rock and roll band, and I though I could pay it all back later. How naive I was, but what fun those days were. We traveled all around the country, paying for our hotels and our rock star living using our 0 interest credit cards for years, thinking we were about to make it big until our irresponsible spending caught up with us. We played shows from Amsterdam to Arizona, from Berlin to Belgium, but in reality, we weren't making very much money just barely above breaking even, actually so we did it for the love of the music.
By the time I went home, I was so greatly in debt that I was on the verge of getting my house repossessed for delinquent credit card payments. By that point, it wasn't a 0 interest credit card anymore! I almost had to file for bankruptcy, and as it was, a lengthy legal battle ensued. Fortunately, my band mates bailed me out, paying for part of my debt so that I could get it taken care of and get back on the road for our fall tour. After that, however, I lived differently. No more staying at the ritz carleton, no more caviar with our Jack Daniels.
From then on, I was living cleanly and within my means. I'd stay at budget hotels, and spend responsibly. After the shows, we wouldn't even drink the customary bottle of $150 champagne any more. All of us were feeling the burn of our success. Sure we had fans and groupies, but we had gotten deeply into debt and besides, our rock and roll life style was ruining our health.
Our drummer had cirrhosis of the liver, our guitarist had emphazyma, and our keyboardist had several broken ribs from a fight. You may think, when you're young, that you can spend what you want and do what you want, but in reality, you've got to be careful. You can end up a washed up has been like me when once you were a rock and roller. Your 0 interest credit card certainly can't buy back your youth.
There are two types of people who might consider applying for 0 interest credit cards. The first is the person who is desperate to get a low interest rate on a credit card and won't bother to read the fine print before making an application. The second is the wary consumer who believes that 0 interest cards must come with a catch and so holds off on applying for them even though the absence of interest on debt would be nice. Both of these types of consumers can benefit greatly by understanding credit card laws and how they impact 0 interest credit card lenders.
Credit Card Laws
What many consumers don't realize is that there is a whole system of laws which control the lending practices of credit card companies. The goal of these laws is to protect credit card consumers. However, credit card companies have found ways to make it so that consumers don't necessarily know these laws. For example, it is a requirement by law that credit card companies offering 0 interest cards must reveal to you what the interest rate is going to be after the introductory zero interest period runs out. However, credit card companies have the right to insert that information into lengthy pamphlets with a lot of other details in them so it's only the smart credit card consumer who benefits from knowing this law.
The Importance of Interest Rates
The reason that everyone wants 0 interest credit cards is because anytime that you pay interest, you're essentially giving a company money just for them allowing you to have a debt. As you can see, interest rates are very important then. The higher the interest rate is, the more money that you're paying to a lender for basically no reason at all. The smart credit card shopper is not only going to try to get a 0 interest credit card but is going to try to get one that's going to remain 0 interest for a long time.
How To Take Advantage of the Law
The best way that a 0 interest credit card user can take advantage of the law is to be aware of the disclosures that are required by the government. Those disclosures are there to protect you as a consumer by providing you with the information that you need to make informed choices about applying for and using your credit cards. In the case of the law discussed above, it's important for the consumer to read the fine print in applying for 0 interest cards. That fine print details the length of the zero interest period as well as what the interest will be after that period is over. It also reveals important information about fees that are associated with things like missed payments on 0 interest cards.
A Note About Online Applications
It's easy to see the fine print when a pamphlet is sent to you in the mail. However, many people complete their applications online. Before hitting "I Agree" on any online application for 0 interest credit cards, make sure that you've read and understand what you're agreeing to. Those laws are there for a reason but they only work for people who opt to protect themselves by learning what the law does to help them.
Both Steven Gwillim & Robert Alan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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