No Interest Credit Card

Posted: Sep 03, 2009 |Comments: 0 |

If you are a responsible credit card customer and you are able to maintain a low outstanding balance, you may receive offers for a new, no interest credit card. Some banks do offer such a deal and although it may make no difference on your part, there are genuine advantages attached to it.

If you pay your credit purchases immediately, you may receive very little or almost no interest on all on the items bought using your credit card. That is why a new, no interest card may have very little impact on you.

A genuine use for a zero interest card is delaying the payment for items bought on credit. For regular cards, delayed payments results in penalties and increased interest rates but for no interest credit cards, the amount you pay will not change tomorrow or a month from now. If cash flow is important to you, a no interest credit card can be of big help.

As much as possible though, try to maintain the habit of paying your credit card bills on time whether or not the card carries no interest. For sure, the period where no interest is charged is limited and will last for months only and not years. Read the fine print especially the conditions applied if you max out the card limit or you get one payment late. Such happenings may mean the end of no interest.

It would be great if your new, no interest card means no annual charges and no service charges also but better find out if this is true. Also determine what are the applicable no interest transactions that you can pay off using your no interest card, like utilities and phone bills.

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