Credit Card Zero Interest : Your Options
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Most consumers believe it is impossible to have a credit card with zero interest. Of course everyone knows that zero interest offers are available for a few months upon opening the account, but eventually that teaser rate will expire. Once the introductory rate expires most people just accept the fact they will be paying interest. But this doesn’t have to be the case; it’s possible to have a credit card and zero interest.
Most consumers believe it is impossible to have a credit card with zero interest. Of course everyone knows that zero interest offers are available for a few months upon opening the account, but eventually that teaser rate will expire. Once the introductory rate expires most people just accept the fact they will be paying interest. But this doesn’t have to be the case; it’s possible to have a credit card and zero interest.
The first thing that most consumers do not understand about the policy of credit cards is that there is a grace period on purchases. Most people don’t know this because the companies do not to make it common knowledge. They are hoping that you won’t use this to your advantage so that they can make more money.
Typically, the credit card company’s policy is that you will not be charged any interest on new purchases for a full billing cycle. This makes it very easy for you to determine just how to have a credit card and zero interest. All you have to do is pay off your entire balance before your due date. As long as you maintain this policy and never carry a balance over to the next billing cycle, they will not charge you interest.
Some consumers may worry that this makes them less enticing as a customer to the company, but most companies actually prefer that you not get in debt with their card. Even if they are not charging you any interest, they are still charging the merchants a fee for accepting your credit card. This is where the credit company makes a lot of money, so getting interest from you is simply a bonus. If you are using your credit card regularly and avoiding the interests by paying off your entire balance every month, you are a valuable customer.
The easiest way to maintain a zero balance so that you can avoid interest is for using your card for things that you had planned on buying anyway. For example, you already have the money to pay your utility bills, for gas, and groceries. Simply set aside this money in your bank account and use your card to pay for these purchases. Then when the bill is due, you already have the funds and can maintain no balance. If you have a rewards card ultimately you will even benefit from using your card this way.
