Before applying for zero percent credit cards, should fully understand how it works to get more benefits from it. Credit card companies offer attractive deals to entice customers and earn business. They offer 0% balance transfer or interest free purchases or both. You should make sure that you pay off debt as soon as possible during the interest free period. Otherwise, the interest rate gets much higher at the end of introductory promotional period. To get more advantage of zero interest cards, play your cards wisely.
There are two offers which customers can utilize in their favor. Zero percent balance transfer credit cards allows you to transfer balance without charging any interest and other account is zero percent purchase rate credit card, which do not charge any interest on large purchases or a series of purchases during the introductory period.
There is no interest to pay off just the cost of purchases and the balance transfer amount, during the introductory period. This interest free period is not forever, but changes after sometime. At the end of introductory period, the interest charged on higher rates on remaining amount of debt. It may be on cash advance or purchase rates, depending on your account.
After applying for zero percent balance transfer card, make a list of your credit loans and pay off first which is set of to expire first. The credit card promotion with higher interest rate will be repaid on priority basis.
When looking for a zero percent balance transfer, compare different cards keeping in mind following points.
Promotional period length You must clear about the length of interest-free promotional period as every card company offer different terms.
Annual fee every credit card charge different annual fee. Cards with premium features generally charge annual fee to charge. Paying too much fee can burden you with more debt instead of saving money. Use the introductory period smartly can save you a lot of money.
Rewards and Perks Some credit card companies also offer rewards and complimentary insurance to add value. You can consider such credit cards with perks, from one another.
Change in rates the interest rate will be charged on purchases, you have charged to the account following the introductory period. The rate charges on balance transfer on credit card if you are unable to pay back before the end of introductory period. Some issuers offer standard ongoing rates but most of them give revert rates.
If you use your zero interest credit cards wisely, you can save a lot of money by transferring high interest debt to 0% interest card to pay off big loan.
You should use your zero percent card to pay for all big and small purchases to save on interest.
Look for credit cards with sign-up bonuses, which include hotel stays, cash backs and points to get air tickets. You can earn bonus by using certain amount on credit card for the first few months.
By making purchases of flowers, entertainment and dining from the credit card issuer’s discount mall, can help in saving money.
Do not ever make late payments or your zero interest periods expire immediately. Even one day late payment will charge you high penalty overnight.