Possessing a no interest credit card will help you gain more savings. You can maximize these savings potential if the account’s zero percent annual percentage rate is permissible for balance transfers. Keep in mind though that most of these zero percent offers are all introductory and you might be tagged with high interest rates afterwards.
Since there is no credit card company that allows you to borrow money without any charges, remember that a zero interest rate introductory offer always has a time limit. The time limit can be as short as six months and can be as long as 15 months.
However, it does not mean that applying for a no interest credit card is like getting into trouble. To erase that claim, here are some pointers that will help you get big savings out of it.
First, it would be better if you are going to use your account for debt consolidation. If you are currently paying off high interest rates from other accounts, it is possible to course all of them through the interest-free card. However, before doing it, you must first read up on the service terms and payment policy that are specified by the bank. If you think you can manage and abide by this, go on with the process. However, there are some accounts that only allow new purchases and not balance transfers.
Next, do not get a charge plate from companies that have annual fees. There are banks that offer accounts with zero percent APR’s. Therefore, if you happen to know an account that has an annual fee, it is best to refrain from rendering your application with them and transfer to an account that does not have this annual fee.
More often than not, accounts with annual fees offer more rewards and benefits. Because of this, you must keep an eye on the costly hidden terms of a no interest credit card and an annual fee-carrying card. Neglecting to monitor these hidden conditions might prove to be costly as time goes by.
Moreover, use your card for expensive purchases that you plan to pay through installment. Because of this, you must target an installment plan that will let you pay the full amount of the transaction before the card’s introductory period ends. If you can pull this off, then you have just completed a loan with no interest.
If you adhere to these tips and maintain your good credit line, use your no interest credit card to your advantage and watch as your savings pile up.