0% Credit Card Offers??

Are 0% credit card offers back?  A couple years ago credit card companies began to pull all of their offers on 0% balance transfers, raising their interest rates, and becoming more particular about who they offered credit cards to.  Has that changed?  Many credit card companies are now starting to offer 0% credit card balance offers for 12 months, 15 months, 18 months, and some up to 21 months.  Some have even dropped the transfer fee from 5% to as little as 3%.

So, what is the catch?  These offers used to be offered to almost anyone, whether they had good credit or not, and often even mailed out in bulk without a lot of  prequalifiers.  However, now the credit card companies are screening their potential customers a lot closer.  Chances are you will not see this kind of offer in the mail, you are probably going to have to search it out yourself.  And even if you find them, you may not qualify.  Many credit companies are raising the minimum FICO score from 720 to 750, offering no breaks on the 3-5% balance transfer fees (with no cap), and once the 0% APR intro rate expires the interest rates may go up to 20% or higher. 

These 0% APR credit card offers can be very enticing, but they are not for everyone.  If you are considering seeking out one of these cards here are a few tips to keep in mind:

• Know your credit score - If your FICO score is suffering, chances are you will not be approved, and your credit will get dinged when the credit card companies start running credit checks. 
• Read the fine print - Watch for misleading advertising with lead in words like "as low as", "up to", "starting at" etc...they often end with "for qualified" and "on approved".  Find out what YOU qualify for before signing.
• Calculate savings - Factor in all aspects of the offer including amount you are borrowing, length of intro rate, transfer fees, and interest rate after intro rate.  Then compare to your current rate over same amount of time.
• Consider your level of debt - If you are over your head in credit card debt to the point you will not be able to pay off the credit card within the 0% APR introductory period you may want to reconsider. 
• Compare your current card - Speak with your current financial institution as they may have unadvertised offers, or be willing to make you a better offer if they know you are considering cancelling their card.

The greatest tip of all - PAY OFF YOUR DEBT - 0% APR intro credit card offers can be a fantastic way to get rid of your credit card debt.  If you set a goal to pay off your debt within the introductory period and manage your money wisely a 0% intro card may be a great solution to your debt.  But, if you are looking to use this time to rack up more credit card debt just because it is a 0% APR then you may want to reconsider whether these offers would be the best solution for you. 

If you know your credit score is too low, debt is too high, or if you are trying to rebuild your credit there here are a few other solutions you may wish to check in to:

• Prepaid Credit Cards - These cards help you manage your money while re-building your credit. Good alternative to revolving credit when you just must have a card, like when renting a car.
• Student Credit Cards - Many students do not have bad credit they just don't have enough good credit to qualify for certain offers.
• Rebate or Reward Cards - If you have low credit card debt and pay your card off regularly why not benefit from it, and get something in return?