As the name implies, zero interest credit cards indicate a 0 % interest credit cards. However, this does not mean that you are not going to pay interest at all over the entire period of using the cards. What these credit cards imply is that you are entitled to zero interest rate during the first few months or a year of using the cards. This interest free period is known as the introductory period. After the expiration of this introductory period, you are then liable to pay the standard rate of interest.These types of credit cards are being offered by several big credit card companies such as American Express, Citi and Discover. However, the length of interest free period and interest rate after the introductory period varies from card to card. For instance, the American Express Blue Credit Card offers 0 % interest for about 15 months with 11.74 % APR. The Citi Platinum Select Card provides 0 % interest for 12 months with average APR after introductory period of 11.24 %. The Discover Platinum Card also offers 0 % interest for 12 months with regular APR of 10.99 %.
Zero interest credit cards are of great benefits for financing large purchases. When you purchase an expensive item with the card, then you need not pay any interest on the purchase over the introductory period. Similarly, they are equally useful for balance transfer. You can pay off bills on your previous cards without paying a high interest rate. Sometimes, zero interest credit cards are also accompanied by other rewards such as cash back and travel miles.
Zero interest credit cards are very valuable based on every individual’s requirements, but a note of caution on how wisely you use the cards in order to enjoy its benefits.
