Intense competition in the market between different credit card issuers has led to an increase in the benefits for customers. Various credit card companies have been competing against each other to provide various offers and discounts on the use of credit cards by customers. Customers find credit card deals in form of cash back offers. They also find credit card deals in discounts on certain products, frequent flyer points, reward points and even balance transfers at 0% rate of interest.
Customers who find credit card deals also compare credit cards to check out the best offers they can use. When they compare credit cards, they also gather information about other things such as the rate of interest charge etc. They also compare credit cards for the duration of the interest-free period offered after the purchase of the product or during the transfer of balance amounts from one credit card to another.
Often credit card companies in order to gain a maximum number of customers offer low rate of interest to purchases as well as for the transfer of balance amounts. In some cases, this low rate of interest also reduces to almost 0% and customer can transfer the amounts to the credit card. Although there may some fees associated with the transfer, it could still be minimal if the total amount of debt in one credit card is very high.
But customers always fail to make note of the fact that the 0% rate of interest or even the low rate of interest offered on the transfer of balances or for a purchase of certain products, there is a fixed period during which the rebate is available for the customer. Suppose a customer transfers an amount of US $500 to a new credit card. The credit card company may charge a balance transfer fee, which could be around 3% or US $15. Apart from this, there is no other charge under a 0% interest offered by the credit card company to the customer.
But the fine print of this offer clearly mentions that the 0% interest given is for a fixed period of time. This is not noted by customers and they believe this kind of interest is forever. When the period expires, the credit card company charges perhaps a higher rate of interest to the customer. If customers are careful and they plan their balance transfer by doing some initial research and carefully read through the terms and conditions, they can fully benefit from the balance transfer process.
The fixed period of time during which the interest is free or 0%, the customer can take advantage of it and pay back the entire sum. At least, it rescues him from paying back the hefty debt at high rate of interest, which he way paying in the previous credit card. Besides, once the entire sum is paid, then the credit limit is further available for purchase of new products or for raising new credit. In this way, credit cards are quite beneficial to customers.