How exactly are credit card with 0% interest?

Diposting oleh pak yons on Rabu, 07 November 2012


Many of us have heard this but can anyone explain it to you? Well, for starters, the average percentage rate is the annual interest rate or interest rate credit cards for payments outstanding. The amount you pay depends not only on the interest rate but also on the method of calculation of interest rates. 0% credit card is a credit card that does not charge interest rate for a specified period. Best deals for customers is the interest-free credit for up to 12 months. After 12 months of credit card issuers charge at normal rate. The card issuer assumes a risk by offering interest-free credit for such an extended period. They balance the risk by only offering 0% credit cards to customers who have the best credit score.

How to Determine Your Credit Score Rating?
Your credit depends on a number of factors. Credit scores are also known as CONSUMER CREDIT SCORING which is widely used as a credit rating for Indonesia. Your credit score is determined based on five parameters. The most important among these parameters is your current debt and debt repayment history.

Three other parameters for the calculation of the credit score is the length of your credit history, amount of new credit and types of credit used. Based on five parameters, the individual was given a score ranging from 300-850. This is indicative of the credit worthiness of the person at a particular point in time. People with credit scores above 770 usually qualify for a 0% credit card. However scores above 700 are also considered good. 0% credit cards often require excellent credit.

One method used by customers to avoid interest balance transfer credit card. It is possible to switch from credit cards that have interest charges to the credit card balance transfer 0% used (balance transfer) as long as you have a credit score that is needed.

Choose a credit card with 0% interest makes the most sense financially and functionally, and have always tried to maintain a good credit score rating.

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