When to Apply for Zero Interest Credit Cards

By Leni Parrish on May 1, 2010

While using credit cards can be practical and easy because you need not bring wads of cash around, it can also make you of the interest rates. This is especially true if you do not pay off the entire bill each month and just settle with the minimum amount. You definitely pay more when you use your card than if you had paid in cash upfront. Fret not, though, because some if not most companies offer zero interest credit cards with which no interest may be paid at all.

With zero interest credit cards, you get 0% APR which means no interest is applied but only during a specified period of time. The periods vary in length but some companies are compelled to offer for at least a year to answer clamor and competition among issuing companies. This is a great opportunity to grab but only if you know you will be able to pay off everything before the period ends. Otherwise, keep your hands off the promotion if you do not want to be slapped with climbing interest rates.

With these basics in mind, here are a few suggestions as to when is the best time to have or apply for zero interest credit cards:

During the Holidays, indulge yourself with guilt-free purchases and other expenses. Swipe your card to pay for gifts and restaurant bills when you entertain friends or relatives who are visiting. Just be sure to pay off the balance before another Holiday rolls in and you will realize that you have saved money that could have gone to interests alone.

If you know you will be making a lot of stuff as one-time purchases, 0% APR cards can be useful. For instance, you need to move to a new house that is not furnished at all. Even before you consider expenses on new furniture and fixtures, you can already use the card to hire movers, pay deposit and advance rent to new landlord or even deposits to some utilities. This will also make your records centralized to one account which means easier management for you. You can defer the expenses without having to pay extra for interests so long as you pay the entire principal amount before the period lapses.

Zero interest credit cards are also keepers especially during emergencies. You can fall back on the card in case you need to repair the car after an accident or worse, pay for medical and hospital bills after an injury. These are unexpected instances that 0% interest cards can instantly and temporarily alleviate.

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