Why 0% Interest Isn't Always a Good Deal

The latest credit-card offer from Discover all but screams out, "What a deal!" The terms: 0% interest for life on balance transfers. JPMorgan Chase Bank also recently offered customers a 0% deal in a limited test. But before you accept, read the fine print. That zero rate won't necessarily last forever. After six months, cardholders who still carry a transfer balance can retain the 0% rate only if they make two transactions per month. And new purchases carry a 13.99% rate. Also, monthly payments get applied to the transfer balance first, so interest will accrue quickly on current purchases. If you're a tardy bill payer, be careful. The first time you're late, your rate on the entire balance will jump to 13.99%. If you're late twice, expect it to hit 19.99%.