A lot of people are having second thoughts in applying for a credit card due to the interest rates that are imposed on them. As these interests pile up, the more a card holder is seriously in debt. Nevertheless, this scenario can be avoided through smart banking schemes.

Huge debts are a thing of the past thanks to an interest free credit card. With this credit card, it is possible to transact balance transfers and pay off existing loans without thinking about interest rates. This scheme or pattern is also ideal for those who would like to purchase an expensive item through installment terms.

However, this offer is for a limited period only and therefore, you cannot steadily increase your debt rate even though you possess one of these credit cards. Because of this, it is necessary that you are acquainted or knowledgeable in using it to your advantage. Here are some tips about making your credit card an ally and not a foe.

First, it would be best to pay your interest free credit card dues a week before the actual due date arrives. It is necessary to do this to make sure that the payment will clear the said billing period. If not, you might be tagged with interest. Card companies or firms have different policies as far as charging payments are concerned. It could be possible that if your payment was applied to a new debt, your old balance could be tagged with an interest charge.

Second, keep in mind the time limit that is attached to an interest free credit card. Every time you apply for credit with no interest, there are introductory offers that are tagged with it for specific periods. Though there are companies that have expiring charge plates, some companies would specify that the zero interest rate offers are only good for 3-12 months from the issuance of the card. Some companies would offer no interest purchases for payments of six months.

Third, you should manage your spending with your interest free credit card and you must be on time for balance payments as well. You will continually have a good credit line if you know how to put purchases and payment schedules in order. If not, you will incur high interest rates and penalties.

Therefore, you must not forget to pay your dues every month so that you can transfer monthly bills to your charge account. When this happens, your expenses are accounted for and you will not be charged with interest rates.

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