02 September 2011
0% Credit Card Hidden Charges
The event of using paper money began and is booming since the past decade and since then credit cards have been used by one and all. Many of us get calls from credit card companies offering free life time cards for usage. Are they really free?
Whenever we use a credit card it is understood that we will have to pay a certain amount more for the usage of this money. There are many schemes on credit cards by credit offering companies and many allow the customer to pay without interest before the billing date. This is termed as 0% interest credit cards. If you move over the due date in repaying this amount then the company charges you some interest along with the principal amount. This interest charges and administrative charges may be different for different credit lending companies. Some times the consumer is not aware of these administrative charges and they are shocked to see a amount added to the principal amount even after few days over due in paying their credit card bills.
One has to understand that the company will definitely charge you interest after the billing date. No amount of arguments and discussions will help you if you have defaulted in paying your credit card bills on time. This also will reflect in your credit card rating which in turn will affect your loan approvals for future.
When one can withdraw a certain amount on their card the interest rate charged will also be have to be paid. This credit card withdrawal is just like a personal loan that you get immediately at your disposal. The amount for immediate credit card withdrawal is limited according to your credit card limit set by the credit offering company.
So one has to have all their financial dealings and expenses recorded and planned, for effective use of credit cards. 0% credit cards or zero balance credit cards are available for the benefit of the consumers and the companies also can afford the risk till a certain time limit after which they charge you. These credit cards can be used effectively by paying the bills every month and enjoying interest free bills for the promotional period usually one years or 15 months.