Many banks approve customers for zero interest credit cards. This interest rate does not stay for the entire period of the card. Zero interest is applicable only for the first few months. People
With excellent credit rating with the bank get approved for this card.
How do banks approve customers for these cards?
1.The customer should have excellent credit rating: the customer with a history of late payment fee and balance transfer from one card to the other will find difficulty in getting approval.
2.Customers who jump from one card to the other in search of free period and low interest rates find difficulty in getting approval for this card.
3.Customers who do not meet factors like employment, income status and job stability do not get approval for this card.
Pointers for the Customers:
When a bank approves the customer for the zero per cent credit card the following needs to be kept in mind-
1.Before signing up the customer should read the agreement carefully and find out if the zero per cent is applicable on balance transfer,purchases or both.
2.The customer should make a note of the date of the expiry of the zero interest period.
3.If the zero interest is applicable on balance transfers then the customers should avoid using the card for any new purchases.
It is difficult for the customer to decide if he should go along with the zero interest or low interest credit card. The customer should watch his spending habit and services he avails from the credit card company before making any decisions.
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