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0 Interest Rate - Save Money with 0 Interest Rate

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In today’s economy, many people need to look for ways to save money, and a credit card with 0 interest rate is one way to do that. If you are paying high interest on several credit cards every month, look for a card that offers an introductory 0 interest rate for balance transfers. The best deal would be a card that offers free balance transfers and has no annual fee.

To qualify for the cards featuring the best deals, you may need to have good or excellent credit. If your credit rating is less than perfect, you may have to settle for a card with a slightly higher rate of interest, and work on raising your credit score so you can get better deals in the future. If you qualify for the zero interest rate card, you can pay off your current cards and make one monthly payment on your new card with no interest. When you do not have to pay interest or an annual fee, your savings could be substantial if you charge sensibly and make timely payments.

The zero interest rate that you get will be for a limited time, usually from 6 months to 1 ½ years, so you will need to use wisdom to make it work to your advantage. Try to pay as much as possible on the balance each month, and never charge any new purchases unless you know that you can pay them off when your next payment is due. If you charge more than you can pay, you will not save money like you will if you keep lowering the balance that you owe.

If you will be using the new card to make purchases too, make sure they are included in the zero interest rate offer for the same length of time as the balance transfers. If you must pay interest on purchases, read the fine print in the offer to see if your payments will apply to your transfers or to your new purchases first. Most companies apply payments to the balance with the lowest interest rate first, so your purchases could be accruing interest until your balance transfers are paid in full.

When you select a credit card with 0 interest rate, look for one that will have a low rate of interest after the introductory period is over unless you are sure that you can pay the entire balance before the rate increase takes effect.

Be careful to thoroughly read the terms in the credit card application. Some companies have no tolerance for a late payment and may charge a high fee and increase the interest rate up to nearly 30% if that happens.

Look for a deal that does not include a fee for balance transfers. If you must pay a percentage of the balance to pay off another card, the effect will be the same as paying that percentage rate on your new card. If you are currently paying over 10% interest on a balance and can transfer it to a 0 interest rate card with a 5% fee, it will still save you money, but it will not be as much as it seems.

If you intend to apply for a different 0 interest rate card when the introductory period ends on one card and transfer the remaining balance, remember that multiple inquiries will have a negative effect on your credit score, and that may cause problems for you when applying for better deals at a later time.

Discover, Citi, Chase, Capital One, BankAmericard and American Express have introductory 0 interest rate credit cards with no annual fee, and after the zero interest rate expires, their rates range from 9.99% to 20.99%.

Many credit cards companies offer cash back when you make purchases with their cards, and some offer free airline miles, points that you can redeem for travel, merchandize and gift cards as well as other valuable deals. Shop for cards with the deals that will be most beneficial to you.

Compare the pros and cons of several different credit card companies, be careful about new purchases, and be diligent in making payments before the due date to gain the most benefit from the 0 interest rate offers.

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