Zero Percent Interest Credit Cards

If you need to make a purchase of a large ticket item and have a solid credit history, a zero percent interest credit card is a great way to manage the expenses. Many credit card companies offer zero percent interest credit cards as a way to entice new customers for coming on board. As long as you know how the cards work, it can be a win-win situation.

A zero percent interest credit card allows a consumer to defer the interest they make on payments for a specified period of time. If the consumer does not pay off their initial charge by the promotion end date, they will be saddled by the deferred finance charge. The charges can be quite substantial depending on the size of the initial purchase and the APR rate that takes affect after the promotional period expires.

If however you have the means and mathematical aptitude for figuring out your payment schedule, a zero percent interest credit card is like getting a no charge loan. Say you are interested in buying new kitchen appliances using a zero percent interest-financing offer. The first thing you should do is found out the final pay off date to take advantage of that benefit. Then, schedule monthly automatic payments through your online banking. Make sure you count out the total number of payments (use your fingers if you need to), divide your total by the number of payments, and then schedule them so the last one arrives the day before the final pay off date.

Zero interest credit card offers vary from 6 months to 1 year to pay off the loan. Make sure you know exactly which one you qualify for and that you can handle the payments on a monthly basis. By managing this type of schedule properly you can save money and build your credit score.