0% Interest Credit Cards and No Interest Balance Transfers
Zero interest credit cards are a very effective way to save money and reduce your monthly interest payments. Most people use 0 interest credit cards in order to transfer balances from higher rate cards. If you are someone who carries balances on credit cards that have high APR’s, then this type of debt consolidation makes a lot of sense.
One bad habit that you want to avoid is constantly transferring debt from one card to another. This may make sense in the short term, but it does nothing for reducing or eliminating that debt. It’s easy to get excited about what 0 interest credit cards have to offer, but it’s also as easy to find yourself charging up your new card, only to transfer the balance to another card a year later. This can become a vicious circle.
No Interest Credit Cards – Know The Pitfalls
If you’re considering adding 0 interest credit cards to your collection, understand that most of these cards only offer the zero interest for a limited introductory period. Typically it can be between 6 and 12 months. After this initial introductory period, the interest rate on the card will certainly increase. Other 0 interest credit cards will apply the no interest option only to balance transfers, and some credit card companies will charge a fee for these balance transfers. This is why it’s important to read the terms and conditions before you submit your application.
The 12 month 0% interest balance transfer credit card
There have been a lot of changes to the credit card industry in recent years, and credit card reform continues to take place. The ease at which most people could get credit has certainly changed and so too has the concept of lifetime 0% interest balance transfer credit card offers. Even though we’ve seen this type of credit card offer evaporate, there are still some banks that offer a 12 month 0% interest balance transfer credit card.
Do you need good credit to get approved for a 0% interest credit card?
In a word, Yes! In fact most 0 interest credit cards require “excellent” credit. This is just another reason to protect your credit record as much as possible. There certainly are numerous benefits offered to people with this type of credit.
Some of the more popular zero interest credit cards are:
- Discover® More Card
- Chase FreedomSM Credit Card
- Citi® Platinum Select® MasterCard®
- Capital One® No Hassle MilesSM Rewards
In addition to the benefit of no interest, some of these cards also offer a rewards program. The smart credit card shopper will know to look for this sort of thing, so not only will you receive a 0% interest on purchases and balance transfers, but you will also enjoy rewards point which can be redeemed for either cash or travel and other rewards. The Discover More Card is one example of a 0 interest credit card which also has a rewards program.
For more 0% interest credit cards, visit creditcards.com.
