24 Months Interest Free Credit Cards, You Must Know!

24 Months Interest Free Credit Cards – You can save money on your card by purchasing a credit card that offers no interest during the introductory period on purchases, balance transfers, or both. Some cards also charge a monthly fee instead of no interest. Compare to see how much you can save.

What is a no-interest credit card?

Interest-free credit cards typically have a 0% interest rate during the introductory period, after which the interest rate changes to a fixed rate. This is a fixed period of time during which the credit card can be used interest-free. However, once this period ends, interest will accrue on the outstanding balance until it is paid off.

Since the interest-free campaign is a regular campaign, you must apply before the campaign period ends in order to take advantage of the 0% interest rate. You will also have to pay the minimum monthly payment (usually around 3% of the balance), but it is wise to pay off more if possible.

Tip: 0% interest rate promotions are usually most beneficial if you can pay off the entire account before interest accrues. You can use the repayment calculator to find out how long it will take you to pay off your account, or set a reminder in your calendar for the end of the introductory period.

Example How much can you save by using a credit card with 0% interest?

For example, let’s say you want to buy a new refrigerator that costs $2,000, and you plan to save $200 each month to pay it off. If you were to pay with a credit card with a 19% APR, it would take you 11 months to pay off the balance and cost you $194 in interest fees.

By comparison, a credit card with a 0% APR on purchases for 12 months would allow you to pay off the refrigerator within 10 months and pay zero interest.

What types of 0% APR credit cards are available?

There are three types of 0% APR cards: cards that offer interest-free promotions on purchases, balance transfers, or both, and cards that charge a monthly fee instead of no interest.

Advantages and Disadvantages of Interest-Free Credit Cards

Interest-free credit cards are a useful tool not only for saving money when buying now and paying later, but also for paying off existing debt and clearing balances quickly. However, there can be some disadvantages to these offers. Consider the pros and cons carefully.

How to compare interest-free credit card offers

If you are interested in getting a credit card with an interest-free period, look at the following features and details to find the right campaign for you.

Introductory Period

If you do not plan to make any short-term purchases, the longer the introductory period, the better. That way, you have more time to make interest-free purchases and pay them off before they become reverse-rate.

Interest rate at the time of purchase

This is the interest rate you pay if you do not repay your purchase before the introductory period expires and the interest rate you pay thereafter. This interest rate can be as high as 24% per annum, so be sure to take this into account when making comparisons.

Conditions for Interest-Free Periods

Credit cards that offer an interest-free period usually have special conditions regarding allowable purchases and repayments. For example, cash advances are not eligible for the interest-free period and the balance must be paid in full by the due date shown on each statement.

Rewards Programs

Some cards offer rewards or frequent flyer points for every dollar spent on the card. These programs can provide additional benefits, especially if you have a credit card with no interest on purchases.

Rewards

Many cards offer additional benefits such as free travel insurance, purchase protection, extended warranties, and concierge services. The more you use these benefits, the more value they add to your card.

Account Maintenance Fee

While some cards have zero annual fees, others charge fees ranging from $20 to over $700 per year. Also, if you purchase a no-interest credit card that has a monthly fee, the cost may increase over time. Either way, make sure the savings you get from the interest-free period offsets the cost of these fees. You may also want to consider a credit card with no annual fee for even more savings.

You May Also Like

About the Author: adminpori