Should you get a 0% credit card?  I see offers of balance transfers to a 0% credit card all the time.  I get asked should you get a 0% credit card and transfer your balance?  My short answer is yes, and no.

As you’re probably aware, your credit card interest rate could be 20% or more.  If that is the case, transferring your balance to a 0% card “could” be a smart move.  I say “could” because if you cannot pay off the balance during the promotional timeframe, you’ll only save money for the time you have that 0%.  The offers I’ve seen usually last between 6 and 24 months.  And if you miss a payment, the rate will probably go up to the rate without the promotion.  Additionally, they could charge you the interest rate from the time you got the card.  The bottom line is that you MUST pay off the balance before the rate goes up.  And you can’t charge anything to that card in the interim.  You also have to read and understand the terms of the card before applying.

If you can pay off the balance before the rate goes up without missing any payments, then yes.  However, if you can’t pay the balance off during the promotional rate period, or you tend to miss payments, then it’s probably not in your best interest.  Additionally, if your credit sucks, you probably won’t qualify for one of these cards anyway.

Moral of the story:

Should you get a 0% Credit Card?  Only if you can pay it off during the promotional period and not miss any payments.  It’s kind of a Catch 22.  You need good credit to qualify for one of these cards.  But if you’re struggling to get your high balance(s) down, your credit may not be good enough to get one.  If you can pay it off while in the promo, then go for it.  If not, there are other ways to reduce your payments.  I’ll discuss that in another post.  Or, you can read it in my book.  LOL!!