0 Credit Card

0% CREDIT CARD OFFERS

Reported and Web Produced by: John Matarese
Updated: 06/29/06 09:30:57

If you've built up a balance on your credit card...You might be tempted to jump to another card offering zero percent interest on balance transfers. It sounds lie the end of your problems... Or is it?

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You've seen plenty of envelopes from credit-card companies sporting a big zero. Those tempting offers promise zero-percent interest on balance transfers. But our partner, Consumer Reports Magazine, cautions that zero-percent offers can cost you plenty.

"You have to be careful with any of these cards. For example, after 15 months, the interest rate on this one jumps as high as 19.99 percent."

And many cards make you pay to switch, with something called a "transfer fee."

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This one charges three percent of the balance, so it would cost you 150 dollars to transfer a 5000 dollar balance.

Another gotcha ? This card promises a zero-percent rate on balance transfers through April of 2007, but in fine print says "we reserve the right to change the account terms including the APRs at any time for any reason."

And with many of these zero-percent offers, Consumer Reports says be careful about charging any new purchases on the new card: they could start racking up 19 percent interest.

Bottom line, if you do decide to get a zero-percent credit card: avoid transfer fees, do not use them for new purchases, and pay them off quickly.

So ask questions and read the fine print, or that balance transfer could end up costing you even more in the long run!

As always dont waste your money.

I'm John Matarese.

All material © 2006 WCPO-TV Scripps Howard Broadcasting Company. All Rights Reserved.

posted by News at 3:54 AM