May 11 2016
Benefits of Interest free Credit Cards
You need to purchase credit cards that have very less interest rates so that you do not spend more money while you purchase stuff as well as when you transfer your money from one account into some other account. Transfer is one of the primary concerns among the general public. You can transfer money from one credit card to another in a circle that allows you to balance your account. In this section we will take a look at how interest free credit cards work as well as the benefits of using such a card.
How Interest free credit cards work:
Most of the interest free credit cards work with a defined validity. The validation period works between 9-15 months on an average. After this period you need to pay a fee of 3% on the balance transfer. This fee need not be paid up front. The balance will be deducted from your account. You will need to keep in mind the balance for the transaction while making the payment. Some companies use checks to ask you to pay the amount. Let us take a look at the risks involved while using such interest free credit cards.
Risks of using interest free credit cards:
Each of the interest free credit cards comes with a validation period of some time that ranges between 9-15 months on an average. You need to take a note of these features and make optimum use of the credit cards in this time. Your balance transfer will have no fees included in this time. After the expiration of this period, you will have to pay a fee of 3% on your transfers.
Sticking to the basics
Most of the credit cards nowadays come with an introductory offer of 0% fee on purchases too. But it is better to use the interest free credit card only for transferring balance to another account. This will help you in monitoring your account without any discrepancies.
Missing a Payment
Always purchase items with a plan to repay them on time. Whenever it comes to making payments, never default. If you do not abide with these rules, you will be slapped with a fine of upto 30% along with removing your 0% interest free privileges.
Maintaining a Limit
If you overshoot your limit, you will lose your 0% APR privileges. So make sure to check your purchases while you shop.
Abusing your interest free credit cards:
Always make sure that you never abuse your privileges. If you feel that you need to pay the balance at the end of the promotional offer by choosing a different interest free credit card. This is playing musical chairs with your money. Credit card companies know about this and will report you which will affect your credit score in a drastic manner. Never try such stunts and stick to your interest free credit card for a long term which will improve your credit score.