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Credit Card Interest Free - How to Use a Credit Card Interest Free

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Using a credit card is a great way to improve your credit score, get through hard times, or take advantage of special cardholder benefits. Finding a credit card that’s interest free is a very good step to managing your credit wisely.

To find a credit card that’s interest free, you should evaluate your credit worthiness. Do you have a good mixture of secured and unsecured credit? Secured credit is credit that has collateral, such as a mortgage or car loan. Unsecured credit typically refers to credit cards. If you have a mix of secured and unsecured credit, a strong history of on-time payments, and a low ratio of debt to available credit, you’ll be more attractive to lenders.

Being attractive to lenders means that they’ll be more willing to do whatever is necessary to get you as a customer. In many cases, this means offering a credit card with an interest free term. When you’re applying for credit cards that are interest free, be sure to evaluate how long they charge you no interest. For instance, some store cards offer ninety days of no interest. That’s good, but not when you compare it with high-end credit cards that offer eighteen months of no interest charges. Finding a card that offers the longest interest free term will be beneficial in your financial planning.

Depending on what you’re looking for, there are two types of credit cards that are interest free. One offers no interest on purchases and one offers no interest on balance transfers. If you need a card for emergencies, everyday purchases, or other types of spending, you’ll need to look for a card that offers no interest on purchases. However, if you are looking to consolidate debt from other credit cards onto your new card, you’ll need to find a card that provides interest free balance transfers. These cards aren’t interchangeable; in fact, cards that are interest free in either purchases or balance transfers tend to have high rates elsewhere to make up for the money lost on the interest free promotion.

Once you’re approved for a credit card that’s interest free, it’s important to read the terms and conditions of the card carefully. In most cases, the interest free period is a limited-time offer. Make note of when that offer ends so that you can have the card paid off or change your budget when the promotional period ends. Additionally, going over your credit limit or being late on a payment might be enough for the credit card company to revoke your credit card’s interest free benefit—the terms and conditions can help you avoid costly mistakes.

Take note: in some cases, cards have interest free periods that start with each purchase within that period. In many cases, this is true for store cards or large purchases, such as jewelry or electronics. If you do not pay the balance off in full by the end of the promotional interest free period, you can be charged the full amount of interest on the entire purchase price from the date of purchase. Read the terms carefully to avoid this pitfall—getting charged back interest on a big purchase will massively increase the amount on that card.

By carefully selecting a card, following the terms of the card, and managing your credit wisely, using your credit card interest free will help your credit and help you get the most out of your money.

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