Do No-Interest Credit Cards Exist?

The shortest answer to this question is yes, but the more accurate answer would be yes, but with conditions. If you are a responsible consumer and have a good credit rating you will definitely receive offers for a new, no interest credit card. Many financial institutions and lenders offer these cards and there are distinct advantages for both the lender and the consumer.

The shortest answer to this question is yes, but the more accurate answer would be yes, but with conditions. If you are a responsible consumer and have a good credit rating you will definitely receive offers for a new, no interest credit card. Many financial institutions and lenders offer these cards and there are distinct advantages for both the lender and the consumer.

One good advantage to accepting a no interest credit card offers is your ability to delay interest on large purchases you may be planning. For example, if you are planning on purchasing a new dining room set, many consumers would not have enough cash for that up front. These purchases are the ones most people would need to make on credit, which accumulate interest every month.  Making large purchases with an introductory zero percent interest offer will save you money.

Keep in mind that if you plan on using a new card for a large purchase you absolutely need to notify the company first. Generally if a card is activated and then immediately used for a large purchase, they detect this as a security risk and close the account. Notifying them ahead of time will eliminate this risk. Normally these zero interest credit offers last for six months to a year, which is plenty of time to significantly pay off the balance and incur no interest on your large purchase.

Another great use for a no interest credit card offer, is the no interest balance transfer offers. If you are already paying a high interest rate on an existing card then you are losing money and not making much headway on paying off your balance. Many credit card companies are offering zero percent interest on balance transfers because it is a great way for them to earn your business, and a great way for you to save money. Even though most of these balance transfer offers have a fee associated with it, over the course of the zero percent you will save much more money than the fees associated with the balance transfer. 

Only one or two companies in the world offer a permanent zero interest card, and those are really only given to consumers with unlimited financial resources and usually have high fees. More to your advantage will be the shorter term offers that you can use to effectively manage your finances.