If you are thinking about getting yourself a credit card, why not start with one that comes interest free for a limited period. This way you can save money on interest fees you would have had to pay, while you see if credit cards are for you. You can spend the credit you have been given knowing that you won’t be made to pay interest. You might even be tempted to think that credit cards are a gift from heaven.
Think of when you are making a big purchase. You can use your credit card to pay cash while you choose an easy repayment option that suits your pocket. It is unfortunate that credit card issuers don’t indicate the actual APR payable once the interest free period has expired.
The best way to take advantage of this interest free period is to make a big purchase and pay it off before they start charging you for interest. The interest free period varies. Some issuers give you six months while others give you 12 months with is plenty of time to pay off the debt you owe. That way you can make sure there are no nasty surprises waiting for you.
But how do you know which one has the lowest APR? The best is to first just browse around at all the major credit card issuers. If you spot a long interest free period being offered, ask the issuer what APR they charge at the expiry of the interest free period and they’ll tell you.
If they choose not to divulge this information, then don’t bother to hang around. Most card issuers will oblige and tell you, but some unscrupulous companies may not, so that they can catch you unawares. However, it is always good to know beforehand what you get yourself into. To not do so is a quick way to get yourself into trouble. Credit card debt is easy to get into but difficult to get out of. Heeding these warning calls will prevent you from becoming a statistic.