I was asked an interesting question not long ago. The question was, “are there free credit cards?” I thought it was a bit of a weird question, but then when I thought about it, it was actually an understandable question.
With interest rates rising and the introduction of more and more fees, having a credit card these days has become quite an expensive proposition. But unfortunately, I had to tell them that no, there are no free credit cards.
Credit by its very nature is the act of a person or institution, usually a bank, that lends something of value to another. In almost all cases, it is not done out of the goodness of the creditor’s heart, but because the debtor agrees to pay the principal plus interest.
This is, in fact, the heart of the way our banking system works. It is the foundation of our economic system. And while banks, credit unions, and financial institutions that issue credit cards make a considerable amount of money from the fees they charge account holders, most of the profit they make comes from charging interest.
With all of this being said, there are definitely ways to lower the cost of being a cardholder. First, it’s always smart to shop around to find which ones have the lowest APRs.
I guess finding 0% APR deals during an introductory period can constitute a free credit card. At least for the moment anyway. You’ll save money on interest rates until the introductory period expires. Just make sure you know what the regular interest rates will be when it’s time to start paying them off.
Another thing to take into account, as we have said, are the rates. Fees come in many forms, including annual fees, cash advance fees, balance transfer fees, late payment fees, etc., etc. Depending on the card you choose, you may be subject to some or all of these.
These are the reasons why it is so important to read the terms of each and every offer that interests you before applying. Before submitting an application, please carefully review all features and benefits, along with the terms of the disclosure statement.
While you won’t find free credit cards, you can find some pretty great deals if you just take the time to search.