0% Interest Credit Cards

0% interest credit cards charge no interest at all for a certain period. Cards make their profits by charging interest on outstanding balances, as well as various fees. However, many card companies entice people to obtain and use their card by offering zero interest for a certain period (such as a year). This zero interest might be applicable to purchases, balance transfers or both.

Credit cards, first introduced in 1950, are familiar now in the western world, although used in some countries much more than others. People in the US, Canada and the UK use cards the most, while in Japan they are only commonly used by very large businesses. 0% interest cards are particularly appealing to users.

Card issuing companies make their profits by charging interest on outstanding balances, as well as various fees. However, many companies entice people to obtain and use their card by offering zero interest for a certain period (such as a year). This zero interest might be applicable to purchases, balance transfers or both.

Cash advances are often charged an interest rate, and sometimes this interest rate is applied on the transaction date rather than the billing date. It is also common for card companies to apply a higher rate of interest to cash advances, and also to apply payments to all other transactions before the cash advances.

A zero interest credit card is often used to reduce payments by transferring a balance from another card where interest payments are due to the zero interest card and thus avoiding the need to make any interest payments on that balance for a certain period.

0% interest credit cards can also be used to make money, by transferring the balance into a bank account which pays interest, or occasionally another form of investment. Cards have even been used to fund part or whole of the startup of businesses, although this is an unusual and somewhat risky form of business start-up capital. There is a rumor that the Google company was initially funded using cards, as well as a few movies (such as “clerks” and “Battlestar Galactica: The Second Coming”) and other successful business ventures.

For more relevant information see our Blog Post 0% Interest Credit Cards.

For more relevant information see our Blog Credit Card Information