Choosing the Right Zero Percent Cards
After paying high interest rates on your outstanding credit card balances for so long, many people are dubious about the idea of zero percent cards. They believe there must be a catch involved or some other downside they can’t see.
However, they really do exist and they can be a great way to reduce the amount of interest you pay.
There are some zero percent cards available on the Australian credit card market, designed to help cardholders regain control of their credit card debt levels.
Zero Percent Balance Transfer Cards
If you’re carrying a large credit card balance, you could benefit from transferring your outstanding balance over to a credit card charging 0% for an introductory period. This reduces the amount of interest you’re being charged on your debt and makes it much easier to put your interest savings back towards reducing your balance very quickly.
Be aware that the 0% interest rate only applies to the balance amount you’ve transferred from another credit card, so it’s important not to use this card to pay for any purchases or withdraw cash from your card.
You should also keep in mind that when the introductory period expires, your rate will revert to a much higher rate, so try to reduce as much of your outstanding balance as you can before the higher rate kicks in.
Other Types of Zero Percent Cards
There are some credit card holders who benefit from paying no interest at all on the money they spend on their credit cards.
While these aren’t true zero percent cards, they are still giving customers the option of having a credit card interest free.
The key to paying no interest on these cards is to check whether your card issuer offers any interest free days on purchases. You’ll find most of them offer up to around 55 days interest free on purchases.
This allows you to pay for the things you need using your credit card and then you have the rest of the month to repay your balance in full. You need to make sure your account has a zero balance before the statement due date. If you can do this, you’ll be charged no interest on the money you spent using your card.
When you look at these options, you’ll realise it really is possible to have a credit card without paying high interest rates.
