No Interest Credit Cards
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Comparing no interest credit cards
It is important that you take some time to compare no interest credit cards because if you don’t, you may be in for an unwelcome surprise. One offer may be completely different from another, and even though you will end up saving money in most cases, there are some instances where the card you choose could actually cost you more money in the end.
How long the introductory periods lasts
If you have a card that is offering a low purchase rate and a 0% balance transfer rate, then you must be careful to choose a card that has the same length of time for the promotional period for both. You must also make sure that the interest rate for both purchases and balance transfers is the same. If you don’t take the time to check this crucial point you can end up paying a lot of interest charges without even realizing it.
There is a guiding rule when it comes to allocation of payments with no interest credit cards, and it goes as follows. The balance with the higher interest rate will be paid off after the balance with a low rate. This means that while you are paying off your 0% balance transfer, your purchase balance is not receiving any payments if it is not 0% as well, and is in fact sitting there collecting interest.
Six months down the road you may have a heavy debt on any purchases you have made. This is a standard practice for all credit cards in the industry, so make sure that you look for a card that has the same rate of interest for both purchases and balance transfers, and that they both have the same introductory period of time.
If you are comparing no interest credit cards and feel that you do not need to make any purchases on the credit card while you are paying off your balance transfer, then it is not important to worry about the length of time or the interest rate for purchases. In this case, you can look for cards that offer a lower annual fee, a rewards program or a standard low interest rate so that you can use the card for purchases once the balance transfer has been paid off.
If you know what to look for when you are comparing no interest credit cards then you’ll be more prepared to make a final decision that you feel completely comfortable with. Use the guidelines mentioned above to find the best credit card for your own situation.
Similar Posts:
- Saving Money on Existing Balances and New Purchases Using 0% APR Credit Cards
- Balance Transfer Rate
- Is a Balance Transfer right for you?
- 0% Credit Card: Purchase vs Balance Transfer Cards
- Benefits of Interest Free Credit Cards
