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Small Business CardsSummary: It would be wonderful if all credit cards were interest free credit cards. It's good news to know, however, that there are some that are in fact interest free – at least for a certain period of time. At a time where people around the world are cutting back on credit card spending and working hard to "pay down" their debt it should come as no big surprise that credit card companies are going to extraordinary measures in order to drum up new business.
What does it Take to Get Interest Free Credit Cards?
It may come as a surprise to you to see interest free credit cards offered on the market. Especially when you know that credit card companies that typically earn their income primarily from credit card interest. So how can they offer low or zero percent cards to you as a consumer and still make money? And how can you as a consumer take advantage of these offers? Read on to find out...
Enjoy 6 Months Interest Free With This Citibank Clear Platinum Credit Card
If you are looking for a breathing space for your credit repayments, transfer your balance to Citibank Clear Platinum and enjoy 6 months interest free.
- 11.99% p.a. on purchases
- 0% p.a. for 12 months with 3% handling fee on balance transfers
- $99 annual fee
- 21.74% p.a. on cash advances
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) |
|---|
Interest free credit cards do not grow on trees and they are not available to anyone interested in getting a credit card. These offers are generally limited to those who have exemplary credit scores. So, what can you do to make sure that your credit score is rated high enough to be eligible for one of these cards?
- Become a disciplined user of credit. This means that you need to use your credit wisely, pay more than the minimum balance each month, and never miss a monthly payment. Of course this isn't limited to credit card debt. Utilities and other monthly expenses can cast a shadow on your credit report as well so keep them in good standing by paying on time, every time.
- Don't apply for every credit card that comes along. Credit card companies are going to work harder to get your business if you prove to be a discerning customer. If you want the really great offers such as an interest free credit then you're going to have to limit your card applications first. Too many applications for any type of credit are affecting your credit score negatively - especially if you are turned down.
- Use credit wisely. If you want to get credit you have to have credit. It sounds a little off but it's the way the world turns. Good credit deals are usually offered to consumers with a solid history of responsible credit habits.
How to Get the Most From Your Interest Free Credit Cards
The big thing to remember when it comes to interest free credit cards is that the interest free period generally only lasts for a specific amount of time. If you really want to get the biggest bang for your buck take advantage of that limited time offer to consolidate debt. Eliminate the debt with the highest interest rate first. Here are a few things you'll want to keep in mind for an aggressive debt management plan.
- Transfer the balance of high interest rate credit cards and pay it off as quickly as possible. This will eliminate the higher interest rate debt. It can also help you achieve debt free status much faster, provided you don't rush back out and charge more to those high interest credit cards.
- Pay off the balance within the "interest free" time frame. This can save you a lot of money over the life of your credit card. The less debt you have on your card at the moment the interest grace period expires, the less you'll pay for your debt overall.
- Always pay off as much of the debt each month as possible. Never resort to minimum monthly payments if you can avoid them at all. Some credit card companies in the past have made it so that the minimum payment didn't even cover the interest on the monthly balance. This won't affect you much for the duration of the "interest free" period of your credit card. Get in the habit of paying off as much of your credit card debt each month. It will help you stay in the habit later when it is likely to matter even more.
What's so Great About Interest Free Credit Cards?
Are interest free credit cards really worth all the fuss? You better believe they are. Interest free is interest free. Of course you'll want to read all the fine print to make sure that one offer is as good as the next. Most of them have a limited lifespan and it's important to know what you're going to be hit with as far as interest rates go once the "grace" period expires.
One great way to use them is as a "dumping ground" of sorts for all of your higher interest rate credit cards. Get rid of the cards that carry a high interest rate by transferring the balances to the zero interest card. This gives you a little breathing room, and takes some of the weight of your shoulders. When you do a balance transfer make sure you get rid of the other credit card or you'll find yourself in the same situation later on.
Some people make the switch year after year from higher interest to zero or low interest rate credit cards and save a ton of money by doing so. Also called credit tarting this could be a dangerous game to play. It can actually ruin your credit score as well. So be aware of the risks associated with this practice.
Sometimes it really does work to your advantage to switch credit card companies rather than remaining loyal to one card and one company. Interest free credit cards that offer good terms and solid benefits to you as a consumer offer the perfect opportunity to benefit by making the switch. Having said this, your best bet is to pay off the full card debt in full each month - that way you never have to worry about interest.
