Zero Interest Credit Cards
There are many different types of credit cards to choose from
including low interest, balance transfer, instant approval,
reward, airline, corporate, prepaid, and even student credit
cards. Obviously, you consider many factors when determining the
best offer for you.
Chief among these factors are all the different rates associated
with each offer including the APR (annual percentage rate), the
annual fee if there is one as well as other cardholder benefits.
Bear in mind
- Low interest credit cards have either a low APR or a low
introductory APR. A low interest rate credit card can be a good
choice for people who tend to either leave an outstanding
balance on their credit cards or tend to pay their bills late.
- Low interest credit cards can also help save money by reducing
interest and finance charges.
- Cardholders who tend to carry an outstanding balance on a
credit card with a high interest rate may also benefit by
applying for a low interest credit card for balance transfers.
Simply put, with balance transfer credit cards, you can transfer
a balance from an existing high interest credit card to a low 0%
APR interest rate credit card.
Benefits that 0% cards should include
- There ought to be 0% introductory APR for at least the first
12 months and no annual fee. A typical example would be the HSBC
Bank Platinum MasterCard
- special schemes like a rebate program, whereby cardholders
earn a cash award that varies according to the amount spent
annually. For instance, a cardholder may be awarded a 0.25%
rebate for the first $1,000; 0.5% for amounts over $1,000 and up
to $3,000; and 1.5% for purchases over $3,000 up to $10,000. An
additional rebate may be added for any billing period in which
the account carries a balance, so that only those who spend up
to $10,000 a year and carry a balance will be able to take
advantage of the 2% cash back rebate. A good example of this is
the Chase Bank Cash Plus Visa
- If you have a good credit history, the introductory rate for
purchases should be long-term, say 15 months.
- Look for benefits like purchase protection, smart card
technology, discounts at certain merchants and retailers, a
year-end financial statement, and various travel and emergency
assistance services.
- Watch out for schemes like optional free rewards programs. For
every dollar spent on your card, for example, you earn one
point. Earned points can be applied to a variety of services and
products. There is no yearly limit or expiration on points
earned. As an example, Blue from American Express offers you
this benefit. Looks like a good deal
- Several zero interest cards offer merchandise rewards on items
such as toys, DVDs, clothing, jewelry, household items and
gifts. You can also receive travel rewards on items such as
theme park tickets, hotel stays, and cruises. Plus, of course,
there will be 0% introductory APR for a certain period on card
purchases and balance transfers.
- There are cards that offer a 0% introductory APR on purchases
and balance transfers for up to 12 months, a high credit limit
and no annual fees. You can also get a customized card with your
business name plus online account management benefits
- Many card companies offer zero interest cards for those with
"bad credit". So you can spend within limits and re-establish
your credit. Usually, such cards do not run credit checks and
avoid credit turndowns. There is also usually no application fee
involved. Moreover, on-time payments are reported to one or more
than one major credit bureaus on a regular basis.
- Other cards offer unsecured cash advance loans up to a certain
amount. Along with that, there may be offers of "guaranteed
emergency cash" that you never have to pay back, and guarantees
of no turndowns, no annual fees and no credit checks
However, it is important to read the fine print before you make
a decision, so that you aren't caught in a loophole later!