If You're Late: 12 Month Interest Free Credit Cards

12 months interest free credit card are ideal for credit card holders that are late making payments. They allow the card holder to avoid interest charges and penalties associated with late payments for up to 1 year. The cards provide a way for a late payer to lower costs and straighten out their financial situation well in advance of the time in which interest will be charged and penalties assessed. This may be an important advantage to the card holder.

Regarding Late Payments

A few words regarding late payments. A card holder with a history of late payments should consider whether having a credit card is important or not. A credit card is a privilege not a right that not every person qualifies for. A person who is consistently late paying their monthly charges may being spending too much or have not been taught the responsible use of credit. This circumstance will result in grave consequences for the card holder down the road as they attempt to acquire more credit, such as a car or home loan.

Reporting Late Payments to a Credit Bureau

Although interest and penalty charges are waived during the 12 month period, the credit card company may choose to report late payments to the credit reporting bureaus. So although the card holder in not in default of the credit card, others may use the information reported and determine that the individual is a poor credit risk. This not only affects the qualification for loans but may also affect a person’s employment opportunities as many employers use credit reports to determine trustworthiness.

Occasional Late Payments

Having the option to not pay interest during the 12 month interest free period is important for an occasion circumstance that arises where am individual may need to miss making payments for whatever reason. As long as these occasions are not frequent it may be permissible, provided that the card holder understands that an adverse credit report may still be filed.

Seek Credit Counseling

Using the 12 month interest free period to avoid interest and penalty charges should not be viewed as reason to accumulate too much debt and create a situation where the card holder is facing dire financial circumstances as a result of their irresponsibility. An inability to use credit responsibly is a sign that the individual card holder may benefit from credit or financial counseling in order to identify the problem and address it in its early stages.