When it comes to leveraging your finances and saving some money, there’s nothing better than a 0% interest credit card which allows you the opportunity to pay off monthly balances with zero percent interest. And that’s just one of the many appealing advantages to owning one of these credit cards. With high interest rates on the rise, it’s a breath of fresh air whenever you see “0%” and “interest rate” in the same sentence.
Things to Consider before Signing up for a 0% Interest Credit Card
Before you start signing up for credit cards that offer 0% interest rates there are a couple of things to consider. First of all, most credit card companies won’t approve you for one of these credit cards unless you have excellent credit, and by excellent that usually means a credit score of 720 or higher. If you’re credit isn’t exactly up to par then don’t be too surprised if you’re not approved for the credit card.
While diamonds may last forever, the 0% interest rate will not. These rates are usually only good for a short period of time, normally anywhere from 6 to 18 months. After the period of 0% interest rate is over, it then goes back up to the regular APR which may be quite high at times. Be sure you make use of your 0% interest period wisely to make significant purchases, and then pay off balances within the allowed time, thus saving from the interest that you will not pay.
Advantages of 0% Interest Credit Cards
0% interest credit cards are more popular now than ever. People know that with the instability of the economy, saving where you can and pinching pennies can be quite beneficial, but then again it’s highly unlikely that the general public is going to toss in their shopping carts and shred all their credit cards. Thanks to 0% interest credit cards, people can continue to take part in consumerism without having to pay more than what they’ve bargained for. The following are just some of the many advantages of 0% interest credit cards.
There’s no interest for a certain number of months, many times up to 18 months. Think of all the money you can save during that period. For some people that can equal hundreds of dollar in savings while others may experience savings in the thousands.
You can transfer and consolidate other credit card debts to the 0% interest credit card. This could mean even more savings. For example, if you have a $5000 debt on a credit card with an interest rate of 19% and you transfer that balance to a 0% interest credit card, you can save almost $1000 in 12 months of paying no interest. That $1000 can go straight into your savings or to pay off bills (like your credit card).
Cash back rewards are also something you can take advantage of when you get a 0% interest credit card. For every dollar amount you spend, credit card companies are willing to give you cash back. It’s like you’re getting paid to go shopping.
It gives you the opportunity to pay your credit cards in full without the extra expense of paying high interest rate fees. For people who take those interest free months as an opportunity to pay off balances completely, it’s like a bank loaning you money for free. Now that’s unheard of, unless of course you have a 0% interest credit card.
Numerous Credit Card Company Options
Finding credit card companies who offer 0% interest rate isn’t that hard. In fact there are quite a few to choose from, each offering you awesome incentives like no annual fees, gift cards, same-as-cash points, rewards, cash back and many more.