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Zero Interest Credit Cards: What Are The Pros And Cons

Credit cards make you want to buy anything and everything – since it is on credit, anyway, right? Hold on to that thought, though. While credit cards give you the power to buy whatever you want, you need to remember that there is a whole lot of responsibility that comes with it. Do not make the mistake of maxing out your credit card. In addition to that, make sure to never pay late as it can take away some of your perks or worst case, your card itself.

Yes, you may be offered multiple credit cards (it comes along with growing up), but you will need to choose the ones that offer the best deals which complement your lifestyle. One of the best deals of a credit card would be 0% interest. Why so? Well, imagine buying whatever you want on credit with no interest at all – that is indeed a pretty good deal. Remember, though, that the 0% interest period does not last forever – there is an introductory period as provided to you by your credit card provider.

A good 0% interest credit card sounds great, does it not? And now, you want one. However, you must know that there are some cons to it, too.

Pros

Borrow For Free

Imagine borrowing money for free to purchase whatever you want? Is that not part of ‘living the life?’ Here is a tip, though: make one large purchase, such as a laptop, another expensive gadget, or appliance. Since it takes a lot of cash to make that one big purchase, you can pay in installments with a credit card – that too, with a 0% installment. Just make sure to repay the entire balance before the introductory 0% interest period is over. If not, you may be charged extra.

Balance Transfers

Along with the 0% interest with your purchases, some banks will even offer a 0% balance transfer deal. Now, how amazing is that? For example, you have to pay an existing credit card bill but do not have enough money to do so. If this is your case, then you can transfer balance from your new card to your older one to cover the existing account with zero interest.

Cons

Introductory Period

Alas, the dream does not last forever, unfortunately. 0% interest credit cards are too good to be true for it to last a lifetime. After all, how will your bank be making money if all purchases and balance transfers are made on credit without extra fees? Most banks offer an introductory period of six (6) months up to twenty-four (24) months with their 0% interest deals. Of course, it would be best to go with the bank that offers the longer introductory period – in this way, you will have more time to pay off your installments if you have made a big purchase.

Balance Transfer Fees

Some banks offer you a 0% interest in all aspects such as purchases and balance transfers. However, others simply offer one or the other. Also, while there are some banking institutions that offer you a 0% interest on all balance transfers, they still manage to extract money out of you through balance transfer fees – these fees are dependent on the amount that you are looking to transfer to your other account. The higher the balance transfer, the higher your fee.

Maintenance Fees

It does not make sense to get a credit card with 0% interest and not use it. At the end of it, you will still be paying maintenance fees. If this is the case, it completely beats the purpose of using a 0% interest credit card. Hence, make sure to choose a bank that offers no such fees in the beginning. Oh, and do not forget to get some good use out of the card, too.

Zero interest credit card deals can change everything – why not buy anything and everything since it is all on free credit, anyway? While your thought process may be right, you have got to keep track of how much you are spending and whether or not you can pay off those bills before the zero interest deals disappear.

This is just a quick outline about zero interest credit card deals. You can learn more at 0interestcredit.cards. Likewise, visit http://www.depts.ttu.edu/sls/forms/Credit-Cards-College-Students.pdf for more usefule financial advice.
Our team at 0interestcredit.cards shows the two sides of things. Don’t just believe what others tell you, but learn more about the pros and cons so you can make an informed decision.

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