Zero Interest Credit Card -- How to Save the Most

by : Robert Alan

A zero interest credit card is clearly an obvious opportunity to save money. Several credit card companies offer programs where you do not have to pay interest, or finance charges, on the line of credit. In nearly all of these situations, the zero interest credit cards have a limited time offer for zero percent. After that introductory period of time, the rate will likely adjust to your standard interest rate. During the time of no interest, you may be able to save a substantial amount of money by using these credit lines.

How Interest Is Determined

When you use a credit card, the credit card company makes a profit by charging you interest on the purchases that you make. They assign interest rates, or the percentage that they charge you, based on your past credit history as well as other factors. The lower this rate is, the less risk you are to the company and therefore the lower the amount of money you have to pay when you use the credit card. When you apply for a zero interest credit card, you are applying for a line of credit that offers no interest. Again, this is mostly for a limited amount of time. 0 interest cards likely help you to save money by simply not making you pay interest.

What Does Zero Mean?

Whenever you consider a 0 interest card it is essential to know what is covered under that zero interest rate. Some credit lines will apply no interest during an introductory period on purchases only. Other lines of credit will apply this no cost to you to just balance transfers. Still others will allow both purchases and balance transfers to qualify. Read through the offer to get the best choice for your situation.

Using Them To Get The Best

How can you save money when taking advantage of zero interest credit card offers? One way is to consider the current interest rates that you are being charged. If it is higher and you are able to secure no interest for a period of time on balance transfers, then you can pay off your old lines of credit using your card and not have to pay interest on your old debt. This can save you quite a bit of money and is something the lender will more than likely offer to you at the beginning of the introductory period. When using this offer, find out if there are any fees for balance transfers and pay off the transferred debt before the introductory period is over.

Zero interest credit card offers are readily available to those that have average or better credit. You can obtain them through many credit card companies. Qualifications will need to be met. Be sure you know the length of the introductory period that the card is actually at 0 APR as most credit cards will change after three months to 12 months. Then, use these cards to help you to save substantially.