How to Maximize Zero Percent Interest Credit Cards
0% interest credit cards - what's in it for the card company you may be wondering? Good question really.
After all, no card company is going to be offering up to it's customer base something for nothing now, are they.
So, let's check out what's what here.
The credit card company will no doubt gain more customers than say, if they were to offer a simple card with 19% interest rates per annum.
So there is one benefit straight off - growth of customer base.
Secondly, statistics show that customers tend not to pay off the balance at the end of the interest free period so the company will make gains there, receiving interest upon the balance.
There will also be some other fees to gain from too.
Balance transfer fees, over limit fees and late payment fees all very quickly add up.
Added to which, if the cardholder makes a late payment at any time during the interest free period then the interest free is no longer valid and interest fees will be applied from then onwards.
On the other hand, you have to ask yourself what's in it for you? Obvious really.
If you stick to the rules and abide by the terms and conditions you have yourself what can be a very useful addition to any financial situation.
If you are going to transfer a balance from another card then do make sure that if there is a fee involved that the fee does not wipe out all of the benefits of the interest free period.
It's a wise move to transfer only the amount you can pay off before the zero interest period expires, unless the new card has a lower interest rate than the previous card anyhow.
Try very hard to avoid late payment of a balance.
As mentioned, if you are to make a late payment during the interest free period then that interest free part that the card offers goes up in smoke.
Further, it's wise not to go over limit either as the same thing may happen here - the interest free disappears -depending upon the terms and conditions of the card.
It is easy to benefit from 0% interest free credit cards, providing you are disciplined and ensure payments are made on time.
It makes sense to know the basic terms and conditions of use and then stick to them.
In this way the money stays in your pocket rather than the card companies.
After all, no card company is going to be offering up to it's customer base something for nothing now, are they.
So, let's check out what's what here.
The credit card company will no doubt gain more customers than say, if they were to offer a simple card with 19% interest rates per annum.
So there is one benefit straight off - growth of customer base.
Secondly, statistics show that customers tend not to pay off the balance at the end of the interest free period so the company will make gains there, receiving interest upon the balance.
There will also be some other fees to gain from too.
Balance transfer fees, over limit fees and late payment fees all very quickly add up.
Added to which, if the cardholder makes a late payment at any time during the interest free period then the interest free is no longer valid and interest fees will be applied from then onwards.
On the other hand, you have to ask yourself what's in it for you? Obvious really.
If you stick to the rules and abide by the terms and conditions you have yourself what can be a very useful addition to any financial situation.
If you are going to transfer a balance from another card then do make sure that if there is a fee involved that the fee does not wipe out all of the benefits of the interest free period.
It's a wise move to transfer only the amount you can pay off before the zero interest period expires, unless the new card has a lower interest rate than the previous card anyhow.
Try very hard to avoid late payment of a balance.
As mentioned, if you are to make a late payment during the interest free period then that interest free part that the card offers goes up in smoke.
Further, it's wise not to go over limit either as the same thing may happen here - the interest free disappears -depending upon the terms and conditions of the card.
It is easy to benefit from 0% interest free credit cards, providing you are disciplined and ensure payments are made on time.
It makes sense to know the basic terms and conditions of use and then stick to them.
In this way the money stays in your pocket rather than the card companies.
Source...