Looking For ‘Free’ Credit? 0% Purchase Credit Cards
September 1, 2008
For anyone that plans to spread repayments on their credit card balance the interest rate that is charged is of the utmost importance. The rate of interest charged by your card provider will determine how much you pay both monthly and overall on your credit card debt. In the past many people used to browse and compare credit cards in order to get the best rate of interest and keep their repayments and debts down, but over recent years many consumers have been able to enjoy the benefits of paying no interest at all on their credit card spending.
This is thanks to the introduction of 0% purchase credit cards, which allow cardholders to use the card to make purchases in the normal way but to enjoy a period of interest free credit within which to repay the debt in order to avoid paying any interest at all. Many credit card firms offer 0% purchase credit cards, and the interest free periods that are offered can vary dramatically – for example, one card provider may offer six months interest free credit on purchases whereas another may offer twelve months or more. This is why it is important to make sure that you browse and compare a range of 0% credit cards from a number of providers, as the longer the 0% period offered the more time you will have to repay the balance without being charged any interest.
If you still have an outstanding balance towards the end of your interest free period you should bear in mind that you will be charged interest when the 0% period expires, and therefore it is important to clear this balance before the expiry. If you do not think that you can do this is may be worth transferring the outstanding debt to a 0% balance transfer credit card to avoid being charged interest.
A 0% purchase credit card is ideal for those that want to pay for a larger purchase such as a holiday or large item for the home, and then spread the repayments, as it means that you can enjoy quite a lengthy interest free period so you won’t have to pay any interest for the privilege of spreading your repayments. Alternatively you may want to use one of these cards for certain occasions, such as Christmas or when you go away, when you are likely to make a lot of purchases but do not want to pay for the whole lot in one go.
The 0% interest on these credit cards is not extended to cash transactions and withdrawals, and you will be charged both interest and fees on this type of transaction, so you should avoid these and use the card only to make actual purchases. This way you can enjoy the ease, convenience, and flexibility of using a credit card without having to pay the price.
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