0% Interest Credit Cards
Owning a credit card is definitely a necessity in today’s society. Many companies will not provide services without the use of a credit card like renting hotels and vehicles. Credit cards are used to make purchases as well as deposits to secure a certain item or service. Some credit cards have an outrageous amount of interest being charged, which are typically designed for poor credit individuals. Other credit cards have a fairly low interest rate for those who have an excellent credit rating. However, these interest rates can fluctuate and change over time. In fact, credit card customers will often experience a low interest rate in the beginning of the contract.
After a certain period of time, the interest rate on a credit card will most likely go up. Even zero interest credit cards will have an introductory interest rate that will eventually go up. There are many different ways to take advantage of zero interest credit cards. In fact, individuals are able to pay off their balance before a payment is required in order to avoid interest. Paying off a credit card balance before a payment is required is only one way to avoid interest on credit cards. If the customer pays off their credit card balance every month, they will never have to pay on interest.
All credit cards can have a zero interest rate associated with the credit card if the balance is paid in full before the first payment is required. However, balance transfers also offer opportunities for zero interest credit cards as well. Balance transfers are the process of moving the balance from one credit card to another. Many credit card companies will offer a zero interest introductory rate to the customer if they transfer their balance. However, the introductory rate usually only lasts around 6 to 12 months.
A strategy that a lot of credit card users will implement when trying to avoid interest rate is performing balance transfers periodically. In other words, the customer will have their balanced transferred to another credit card before the introductory rate is over. By doing so, the customer is able to avoid paying interest rates, which ultimately leads to paying off the debt at a faster rate. There are more ways to avoid interest on credit cards like credit cards that offer discounts and bonuses. Credit cards that offer cash back rewards provide the customer the opportunity to use those rewards to pay for the interest.
In order to take advantage of credit cards that offer cash back rewards and zero interests, the customer must have an excellent credit score. These types of credit cards are basically designed for customers who have an excellent credit rating. The only way to avoid interest when having poor credit is by paying off the balance of the credit card before making the first payment on the amount that is borrowed. Those who have an excellent credit rating will experience zero interests for as long as 24 months with some credit card companies.
There are certain companies that offer no interest credit cards for qualifying customers. If you are seeking a personal credit card of this type, the first requirement is usually a high credit score. Companies will reward applicants who have good credit with no interest introductory rates. Make sure you read the fine print to see what the rate will be after the no interest period expires. Credit card holders who have an excellent credit score can take advantage of zero interest credit cards by transferring their balance every time their zero interest periods are over. Credit cards that provide zero interest for 24 months are high recommended in order to take advantage of getting out of debt. Some credit cards will offer zero interest on purchases during the zero interest periods. By paying off balances early, transferring balances, and using cash back rewards to pay interest, the customer is able to avoid interest payments all together on credit cards. This process also helps improve the individual’s credit score as well.
By shopping around and investigating different credit card offers before applying, you can find the best one that not only offers a decent no interest introductory period but a low interest rate following this period. A few companies to look into include Chase, Capital One and Discover.
If you need a business credit card there are also opportunities to get zero interest for a certain duration. As a business owner, your goal is to spend as little as possible on unnecessary expenses so your profits are higher. So, in addition to interest rates you’ll want to look at account origination fees, annual fees, late fees, balance transfer fees and any other charges applicable. All of this information is detailed in the terms and conditions section of any credit card application.
You may want to check with your local bank or credit union to see what kind of credit card offers they have available, especially if you already have a personal or business account with the institution. This way you can work directly with a representative at the bank to discuss the credit card options available to you and ask any questions you may have about the terms and conditions. And, many financial institutions have exclusive credit card deals for current members in good standing.
Another method of locating no interest credit cards is to use the Internet for research. Use a major search engine to look for credit cards with zero interest. You will find direct credit card companies with whom you can apply online as well as brokers and review sites where you can access a wide variety of different companies. It should be noted that applying for multiple cards can hurt your credit rating because the number of inquiries, or applications submitted, does have an effect on your score. So, read up on any credit card offers you are considering and compare the features and costs of your favorites before deciding on one.
Whether you apply for a credit card at a financial institution, over the telephone with a company representative or online the process is much the same. You will be asked to provide basic information about yourself including your name, address, telephone number, email address and social security number. If you have lived at your current address less than five years, you may be asked to provide your previous address.
You will also need to provide financial information. This information will include verification of your income from your job or business, your expenses, and in some cases your tax returns. Your income to debt ratio will be analyzed in addition to your credit rating. All of this information is used to determine whether or not you qualify for any no interest credit cards or even the lowest interest credit cards.
Even if you are unable to qualify for any no interest credit cards you may still be offered credit cards with low interest rates. If you demonstrate over a period of time that you are able to make your payments on time you may be offered a better deal in the future. Another thing you should know is that many credit cards, especially those for business owners, offer incentives like rewards points, cash back and frequent flyer miles.