Monthly Archives: June 2008

Credit Card Offers: 5 Rules For Taking Advantage Of A Zero Interest Rate Offer

Credit card companies often take advantage of special words to lure new customers into signing up for credit cards. How often do you come across statements like “0% interest” or “no need to pay for a year” from credit card companies? The truth is, while it sounds like a great deal but it can be dangerous if you are not careful when it comes to choosing the right card, and using it the right way.

I don’t deny that there are times when I have used the privilege wrongly – and ended far away from what I have expected – but I have learned from the mistakes and I am going to reveal what I have discovered. There are 5 rules to taking advantage of the so-called ‘0% interest free deal’.

  1. First of all, do not use your credit card unless you have enough money to pay for an item you want to buy. This is to ensure that you don’t rely on your future earnings to pay off your purchases, as future earnings are not guaranteed. Even if you have the most stable job in the world, there are unexpected things that might happen to you, that will cost you an arm or a leg.
  2. The second rule is to be sure to save some money to pay off credit card debt. It is very important to keep aside the money that you intend to use to pay off the card, rather than spending it on other things and then relying on future earnings to pay off the debt.
  3. Thirdly, the no interest promotion has a deadline. So, it is very important to keep reminding yourself when the deadline is going to be and there are many ways to do this, like using a sticky note and putting it on the fridge, or putting it in your PDA or cell phone. However you remind yourself – that will work – is best.
  4. Fourth rule is, it is better to pay off the debt before the end of the no interest promotion so as to be able to avoid any late chargers. Don’t forget to pay off the debt before the deadline.
  5. Lastly, the fifth rule, is to remember that the money you charge to your credit card is no longer yours. You will have to pay back to the bank whether you like it or not. You can never touch the money until you have paid off the debt. Until then, keep your hands away from the money.

Overall, a no interest rate credit card promotion is a great way to save the interest on your purchase but you must deal with it carefully or else you end up burning your own wallet for nothing. However, if you stick to these 5 rules, I am sure you will be able to save up some money and spend wisely.

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