Zero interest credit cards are great. But there are so many of them that choosing the right one can be confusing. There is a zero interest credit card offer that is good for you but you have to search to find it. The terms and conditions are also very specific.
Some zero interest cards provide product rebates on things like electronics, clothes, DVDs, furniture, home appliances and toys. Also you may get travel points on stuff like airline tickets, hotel rooms, and cruise deals. Other offers provide zero interest rates on balances transfer balances, balance transfers to new credit cards, purchases at grocery stores, department stores and gasoline stations. These zero interest rates do not last forever so you need to act quickly if you want these introductory rates to continue. Some credit cards even offer 0% interest on purchases for up to three months as an introductory rate.
You will find that the best credit cards offer the most perks. These zero interest cards usually provide big cash back bonuses. You earn cash back for every dollar that you charge to your account. For some people this is a lifesaver. They save a lot of money on interest charges.
To find the lowest credit card fees look for credit card debt consolidation packages. These companies will help you lower your monthly payments. You will save more money on interest charges by transferring your balances to one of these cards. You also eliminate the finance charge and the application fee. When you combine all your credit card debt into one low monthly payment you usually will save four to five percent on your interest charges.
Most of these zero interest cards have an annual fee or a service charge. The annual fee can add up to a large amount in a year. It is a good idea to find out what the annual fee covers before you sign up for the card. Most of them do not cover the cost of new purchases. If you have a large purchase you will probably be charged a higher interest rate. These cards can be very useful for people who need a large amount of cash flow every month or who need to pay their bills in a hurry.
A very common interest credit card fee is the maintenance fee. This fee is designed to reimburse the credit card company for expenses they have to pay to maintain the card. These include daily record keeping, billing issues and customer service calls. Most of these fees are very minimal but you do have to read all the fine print before you sign up. It is also wise to call the customer service number at least once a month so you will be able to tell if there are any balance transfers that might have occurred without your knowledge.
The balance transfer fee monthly payment can be anywhere from two to twelve percent. However most companies will offer a low zero percent to start with the balances and then gradually raise it as your balances decrease. Also keep in mind that you have no credit line once you have paid off your balance. This means you must use the card responsibly paying your bills on time to show that you are responsible.
The zero interest credit card issuers have many ways of finding their money. A way that they find better served is by increasing the interest rates of their customers that have balances. In order to get a better rate you have to make sure that you pay your bill on time and in full. You must also pay more than minimum payments. All of this will help the issuer determine that you are a better served customer.