Zero Interest Credit Cards

Did you know that it is possible to actually make money using certain credit cards? These are zero interest ones particularly the ones which have zero interest on balance transfers. What you do is you use the credit to put money into a high-interest bank account then you repay the credit just before the zero interest period expires, and the interest you have been paid from the high interest bank account is entirely profit.

These have even been used to finance various business ventures such as movies (including “Clerks”) and other types of business. Some people say that the computer hardware used in the first stages of the Google search engine, might have been funded using them!

The other major use of credit devices which have no interest on balance transfers is to save paying money on existing cards which do charge interest. The method in this situation is to transfer all the outstanding balances from those which do charge interest, onto ones which don’t charge interest. This means you avoid any interest payments at all (for the zero interest period of the one in question), and can focus on making payments to reduce the balance on the original one (s).

The concept of the credit card as we know it, was first introduced in the middle of the 20th Century and are used by many people, particularly in countries such as USA, Canada and the UK, while less used in some other countries, notably Japan, where they are hardly used by anyone except major businesses.

Although companies such as banks and credit unions who issue them make their profits by charging interest to people who use them, the companies have also found that they can get a lot more people to start using them if they offer no interest payments initially. This can apply to balance transfers, purchase and sometimes both, although does not so often apply to cash advances which often get charged a higher interest rate than other things, as well as sometimes being charged from the date the cash was obtained rather than the billing date. As this article shows, zero interest credit cards can be very useful if used carefully.

For more relevant information see our Blog Post Zero Interest Credit Cards. For more relevant information see our Blog Credit Card Information.