If you’re like me, you probably have received tempting zero percent credit card offers in the mail from time to time. These offers usually loudly proclaim that you are “pre-approved” for a new Visa or MasterCard with a special 0% “introductory” interest rate. This rate is usually dependent on you agreeing to transfer the balance of one of your other high interest rate credit card accounts. While these offers can definitely save you money, they can also be traps which can cost you far more money in the log run than you expect. Below are five potential traps to watch out for if you decide to take the zero percent interest rate plunge:

How Long Does The 0% Interest Rate Last?

The interest free period varies greatly among providers of zero percent interest rate credit cards. You should take the time to compare multiple offers in order to find the credit card with the most flexible terms as well as the longest period of time the 0% interest rate will be honored on transferred balances.

Is There A Balance Transfer Fee?

Since most zero percent credit card offers charge a “balance transfer fee,” you should make sure this fee is not exorbitant. Most transfer fees range from 2 to 3% of the total amount of the existing credit card balance being transferred to the new card. Just make sure the fee is within reason before committing to accepting the offer.

Should You Charge New Purchases?

This can be a real trap if you use your zero percent interest rate credit card for new purchases. Remember, the main reason that you are transferring your existing credit card balances to a 0% credit card is to reduce your interest expense and pay off your existing balance. You may also find yourself with a balance too big to pay off before the interest free period ends. Resist the temptation to shop and remember that the objective is to pay down your debt, not add to it. If you decide to take advantage of a 0% credit card offer then only use it to pay off balance transfers.

What Is The Regular Interest Rate?

Even though the main purpose of a zero percent interest rate credit card is to reduce your interest expense and repay the transferred balance within the interest free period, you should still be aware of what the regular interest rate will be at the end of the zero percent introductory offer period in case you still have a balance. You don’t want to get any deeper into debt from where you started. That kind of defeats the purpose of the zero percent interest rate.

Did You Read The Small Print?

As with all offers of this type, be sure to check the “fine print” with these credit card offers so that you are fully aware and completely understand any special requirements, fees, or restrictions to prevent unwanted “surprises” from costing you more in the end.

While paying credit card interest is not the best way to spend your hard earned money, strategically taking advantage of 0% interest rate credit card offers can save you big money, but only if you are smart about it.