Credit Card Issuers Slashing Intro 0% APR Periods
If you haven’t noticed, credit is becoming harder and harder to come by, and it’s not just mortgages anymore.
The credit card industry is tightening up as well, likely in an effort to avoid becoming the next great American meltdown.
What it means to us consumers is that terms and offers extended by credit card issuers are going to be a lot more sensible going forward, whether it’s the extinction of the no fee balance transfer or a higher standard APR.
The latest trend I’ve noticed is reduced introductory 0% APR periods, which in the past went as long as 16 months.
That’s right, there was a time when you could open a credit card and make just the minimum payment for a year and four months, and then transfer the balance to another credit card fee-free.
But nowadays it’s all about the “up to 12 months” song and dance, meaning you’re chances of actually getting a credit card with a 0% introductory period for 12 months is slim to none.
In reality, you’re more likely to receive 0% APR for about six months, depending upon your credit score and credit history.
The funny thing is the credit card issuers still pretend you’re receiving these golden terms, but it’s not until you actually apply and receive your card that you find out the inconvenient truth.
So as a general heads up, don’t apply for a new credit card assuming you’ll actually get to defer full payments for an entire year.
(photo: arriabelli)
Related Topics:
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- If you Carry a Credit Card Balance, You Better Have 0% APR
- Should Credit Card Issuers Nix Introductory Rates?
- 0% APR Business Credit Card for 16 Months
Posted Under: Credit Help and Tips