If you have ignored 0 interest credit card offers in the past, it might be time to reconsider. Most of us receive so much junk mail that we can be forgiven for just throwing it out. However, next time you receive a letter offering you an interest free period on a credit card if you transfer your balances, it could be worth your while to take a good look at the offer. Better yet, why not find your own special offers by searching for them online? Zero interest credit card offers can save you a lot of money every month over the introductory period and if you use some of your savings to reduce your credit card balance, your monthly payments will be less once you start paying interest again.
Ideally, you will find 0 interest credit card offers with long introductory periods. Try to find a twelve month interest free period to get the most benefit. Also look for a low standard interest rate for when the interest free period is over as well as low ongoing fees and charges, low or no balance transfer fees, and low late payment penalties.
The benefits of 0 interest credit card offers can be substantial. You can gain the immediate benefit of increasing your monthly disposable income for the introductory period. However, if this is all you do you will soon find yourself back in the same position. The best use of a balance transfer to an interest free card is to use as much of your monthly saving as possible to reduce your credit card balance. If you do this, your monthly payment, once your special offer period has ended, will be lower than it is now. As well as a lower balance, having a lower interest rate than you are currently paying will also reduce your monthly debt costs.
Credit card comparison websites are probably the best places to find 0 interest credit card offers. These sites have already sorted through a large number of offerings to present a smaller selection of the best offers. They provide easy to read details about the different offers so that you can compare the cards fairly. In other words, they help you to compare apples with apples.
These sites also make it easy to apply by providing an online application facility, often promising fast (but conditional) approval. Conditional approval means that you are approved as long as you can verify that the information you have provided on your form is accurate. Some of these online applications are really just shows of interest that result in a loans officer phoning you.
No matter which way you look at it, it doesn’t make much sense to be paying hundreds of dollars a month in credit card interest when you can avoid it by taking advantage of 0 interest credit card offers. Even if you can afford the payments, why would you choose to give that money to credit card providers when you could use it to donate to charity, spend it on yourself, use it to take a vacation or simply to reduce your credit card balance? Why not make a credit card decision that makes sound economic sense?
