7 things to know about interest-free credit cards

An interest-free credit card is good if:

   You want to reduce your credit usage by providing you with more credit.

   You will soon make a large payment and do not want to be subject to interest.

   You have high-interest credit card debt that you want to transfer so you don’t worry about interest rates continuing to rise.

   Before you sign up for 0% APR, interest-free credit cards, here’s what you need to know about them.

1. They are good for reducing credit use

   The use of credit, or the amount of credit you have used compared to the amount you have available, will decrease with each new line of credit you use. A rule to always remember is to keep your credit usage below 30%. The more credits you have, the lower your usage will be.

   But remember that if you use the card and make only the minimum payment, your credit usage will increase, causing your credit score to go down.

2. They are temporary

   These cards are usually a referral offer that lasts for a specified period of time, anywhere from 12 to 21 months. Then, the standard interest rate is applied. In short, remember good things always have an expiration date.

   Before you apply for an interest-free credit card, see how long the terms last. If you are planning to make a big purchase when you receive your card, make sure the balance has been paid before the referral offer runs out. Otherwise, you will have difficulty paying your interest if you have a remaining balance.

3. They can reduce your interest payments

   If you are trying to ease the burden of high-interest credit card debt, you can look for 0% APR referral offers and make balance transfers.

   The good news is that you can pay off your debt on a new interest free card. The bad news is that you are not guaranteed to transfer the entire balance. That means you are responsible for paying your old card, at a high interest rate, along with a new card, no interest, at the same time.

4. They may charge a fee

   Not all zero percent interest cards are actually 0% on everything. They have to make money from somewhere.

   Remember when the offer is nice, please read the fine print. Sometimes 0% only when buying. Sometimes these cards will charge you to transfer your balance when transferring your balance from one card to another. There may also be fees to make late payments, cash advances or use overseas. Nearly all interest free cards charge no annual fees (but remember to always check).

   Since not all tags are created or managed the same way, read through all the potential offers you find. See who charges the most or the highest APR after the referral offer expires.

5. You are still responsible for payment

   Although you may not be charged interest for a certain period of time, that doesn’t mean you don’t have to pay at all.

   If you have transferred your balance or you are using your card regularly, you are still responsible for making monthly payments. If you miss a payment, even after a day, you may face late fees and charges, as well as potentially canceling your 0% APR.

6. Not everyone is eligible

   Providing Lucrative credit cards is not for everyone. Because there is often a minimum credit requirement, people with poor or fair credit may not be eligible.

   Before you start signing up for offers, find out what your credit score is. You can usually find it for free online through your current bank or credit card company.

   As you browse through the offers, see what the minimum score baseline is. If you are not eligible, keep searching. If you can’t find anything you qualify for, it’s probably time to build your credit score. When you achieve a high score, you can start looking for eligible offers.

7. This is not the only good offer out there

    There are other good deals, depending on what you want to take advantage of, including:

   Cashback rewards: These cash reward credit cards are where you earn money from the specific purchases you make, whether it’s dining out, grocery shopping or petrol.

 Travel privileges: This can be an aviation credit card or a hotel-specific card. If you travel a lot, you can earn points for free flights, hotels or other hot spots.

 Sign up bonuses: These rewards are when you receive an offer to sign up with a company for the first time. They are often accompanied by regulations. For example, you can get $ 150 for spending $ 1,000 in the first three months of opening an account.