Have you heard of zero interest credit cards for 24 months? If you are like many people, the answer is probably no. If you have thought about this possibility, however, you may be wondering if they are a real possibility. You may also be wondering why anyone would want to give you zero interest credit cards for 24 months.
Zero interest credit cards for 24 months sounds like a great deal–but how does it work? The first part of the process is simple. If you want to get zero interest on any new purchases, you will have to settle the balance before the introductory period is over. This means that you will have to pay at least the interest rate that was charged to you during the introductory period. However, if you can pay off the entire balance when the zero interest period is over, you will get no interest charges at all.
It sounds complicated, but it's actually not that difficult. You do, of course, have to have an excellent credit score before you can qualify for zero interest credit cards for 24 months. If your score is low, however, there may still be zero interest period provisions in the agreement. Check with the company you are signing with to see what kind of zero interest terms are offered to you.
Zero interest cards are good for a number of reasons. For one thing, they are great for those who need to make large purchases and do not want to take out a separate credit card for the purchase. If you are in the market for a new car or a new home, you can easily pay cash for it and then use the card to pay for it. Credit cards carry over the payments so that you are paying interest on the full amount rather than just the minimum. Many people choose to use credit cards rather than bank loans because they tend to be easier to manage, they are often issued at a slightly lower interest rate and the penalty fees are not as high.
It is important to remember that while interest credit cards for 24 months can save you hundreds of dollars each year, they do have some disadvantages as well. First of all, these zero interest credit cards for 24 months tend to have very high default rates. You do, however, have the option of transferring your balance to another introductory offer card before your introductory period expires. However, most companies will hit you with an additional fee when you do so. This can be as much as a couple hundred dollars, so be sure you really want to transfer your balances over before your interest free period ends.
You do have to be aware that while zero interest credit cards for 24 months may seem like a way to save money, they can also lead to high finance charges and in some cases, you can end up paying hundreds of dollars in finance charges each year. This is because credit companies do view those with credit card debt as being less credit worthy than those who do not have any credit at all. Of course, you do not qualify for zero interest credit cards for 24 months if you cannot prove that you have enough credit to even get approved for a card. Therefore, it is imperative that you have some sort of collateral, such as a property, to secure your zero interest credit cards for 24 months, or you could find yourself in serious financial trouble.
Most zero interest credit cards for 24 months come with an introductory offer period of anywhere from six to twelve months. During this introductory period, you pay no interest, but the terms and conditions of the zero interest credit cards for 24 months do not change. At the end of the introductory period, you will be left with a standard interest rate unless you choose to transfer your balance to another introductory offer card. During this time frame, you can still use your zero interest credit cards for 24 months and make unlimited purchases. However, once the interest kicks in and the standard interest rate begins to compound, you will only be able to use your zero interest credit cards for six months at a time before your interest rate will begin to increase.
Zero interest credit cards for 24 months provide consumers with an opportunity to begin rebuilding their credit by using their zero interest credit cards to make a few purchases online. Although the purchases are not as large as those made during a normal interest free period, they are important to rebuild credit since you are not paying any interest. However, since you cannot use your zero interest credit cards for purchases during the introductory period, it is essential that you make purchases every other month to re-establish your credit. By doing so, you will quickly find that your interest free period will end and you will once again be subject to an interest rate.