Zero Percent Credit Cards Info

If you cannot lead a debt free life, you can suffer from financial suffocation that can upset you not just financially but mentally too. It is not uncommon to have debts but you shouldn’t allow them to take a toll on your financial freedom. If you have not been able to manage your credit cards wisely that has caused your debts to pile up, try out credit card consolidation. It can make your debts manageable and also give you the much needed and sought after financial freedom.

If you are in debt, very often you have to juggle your finances. And if your debt load is too much, no amount of juggling your finances will serve the purpose. So, it is best to opt for a debt help option that can help you to manage your existing credit card debts more systematically and judiciously.

You will come across many credit card consolidation companies that can help you in this regard. However, prior to hiring the services of these companies make sure you check the credibility as many firms have tricked debtors into fraudulent activities. Credit card consolidation offers the unique opportunity to merge all your debts into a single debt account that makes your debts manageable. You will be able to deal with a single debt account. It also helps you to keep track of the payment you make each month with the help of the new repayment plan that is worked out as a result of the negotiation that takes place between the credit card consolidation firm and your creditors. One of the main advantages of credit card consolidation is you get to enjoy reduced rate of interest and consequently lower monthly payments.

There are 2 ways of credit card consolidation. One way is to manage your existing debts and that is achieved with the help of a credit card consolidation program. And the other is taking out a credit card consolidation loan that enables you to avail a loan that is equal to the total amount of credit card debt you owe.

A credit card consolidation program is usually preferred over a credit card consolidation loan. This is because when you take out a consolidation loan, you may have to use collateral (if you opt for secured loan). The collateral used in majority of the cases is your house. So, if you fall behind on payments, you may end up losing your home. And if you are not using collateral (unsecured consolidation loan), you have to make payments as per high interest rate. So, the best way to consolidate credit card debt is to enroll for a credit card consolidation program in which you not only enjoy lower interest rates but you don’t take on additional financial responsibility. And if you are able to manage your debts effectively, you will never be far from financial freedom.

Yes, you can actually use zero percent credit cards to turn a small profit for yourself.  Before you even consider this, let’s go over three caveats:

• Can you qualify for a credit card with a 0% introductory interest rate? – Some of the general qualifications were mentioned in this article, on using credit cards with zero percent interest rates, but just to give you a brief refresher, you need a great to excellent credit score, and you can’t have the reputation of being a “card hopper” – a customer who’s known for hopping from one card to another.

• Can you budget accurately and responsibly? – Getting approved is obviously a necessary requirement to pull off making money with a credit card, but this is a close second.  In fact, if you don’t think you can keep a tight budget during this three to nine month process (depending on the introductory rate), it can easily wind up back firing in your face.

• Understand that this isn’t a get rich quick scheme – It’s a process that under careful planning and tight budgeting, can allow you to make a little extra money from something you’re probably doing anyway – making purchases with your charge card.

So here’s the plan.  Apply for a zero interest credit card that suits your fancy.  Again, what you’re looking for is one with a 0% introductory rate that is extended for enough time to make it worth your while – you can find several that will allow at least three months, as well as a card that has a reasonable balance after the intro rate ends – 15%-17.5%.  It’s always a plus to choose a card without annual fees  The Citi Platinum Select Mastercard offers zero percent for six months, an ongoing rate of as low as 11.99% after the introductory offer, and no annual fees.  Continue here for more credit cards with zero rates.

If your application is accepted, set up a high yield savings account at around 1.5% APY with no fees or strings attached – this site mentions some quality high yield savings accounts.  Once you’ve set up your credit card and bank account, go out and spend wisely on your carefully budgeted plan.  If possible, put the money that you plan to charge to the credit card into the high yield bank account before you start.  Since not everyone has that option, make deposits into your savings that coincide directly with your credit spending.  For example, if you charge $100 to the 0% credit card, deposit $100 into the savings account.

When it comes time to pay off the credit card at the end of the introductory offer, withdraw the money you’ve been accumulating from your savings and pay it off.  The interest compounding in your account for the six months, though probably not much, will be yours.  It’s not going to make you rich, but if you spent $5000 with your card, and put away the money ahead of time into a 1.5% yielding savings account, you’ll wind up with a “free” $75.  You have to love getting paid to spend money!

For further information on this process, shoot over to this guide for some great additional tips on making money with a zero percent credit card.

Although the amount of zero percent credit cards offered has been declining rather quickly over the past two years, there are still dozens available for which to apply.  How do you know what to look for?  They all start off sounding pretty terrific – 0% interest rate credit cards – loans without consequence, right?  Um, wrong…let me give you the short-and-sweet on the basic attributes that sum up a 0% interest charge card.  When you feel confident in your understanding, be sure to take a look at this list of the best zero percent credit cards.

Intro APR - If you look up at the URL, you might guess that every card that I mention on this site will have an Introductory Annual Percentage Rate (Intro APR) of 0%.  This means that if you qualify for a zero percent credit card, for a predetermined period of time, whether it be three, six or 9 months, any charges that you make to that card will be interest-free.

Intro Period - This is the amount of time that the Intro APR holds true.  As previously mentioned, most credit cards of this nature will fall into the 3-9 month range.  Once the period is up, your rate shifts to…

Ongoing APR - The interest rate charged after the introductory period.  Zero percent credit cards won’t always live up to their namesake – this is an extremely important factor to consider.  There will be a set minimum, usually somewhere around 12%.  Depending on your credit score, you may be paying a lot higher.

Default APR - This is any rate that you are charged outside of your ongoing interest.  If you fail to make a minimum monthly payment, or go over your allowed credit limit, this sucker will kick in.  You’ll find that most companies will charge you nearly the max allowed by law – typically in the 30% range.  Pay your balance, people – this applies to all credit cards!

Rewards - This should be pretty self-explanatory, but rewards are any favorable returns you receive for spending with your charge card.  They can come in the form of cashback, gift certificates, frequent flier miles, gas discounts…the list goes on, and depending on what rewards you’d prefer, some options will suit you better than others.

Transfer Fee Rate - This applies to 0% balance transfer cards.  When you want to transfer what you owe from one card to another, they aren’t going to let you do it for free – at least not at 0% for 12 months.  They’re going to charge you a percentage of the balance.  3% is a reasonable rate.  You’ll also want to mind the minimum and maximum fees; many card companies won’t allow you to transfer a balance that pays them less than five dollars (you’re not worth their time).  On the flip, you’ll want to look for caps on fees as well – if you’re carrying a large sum of debt, you may be paying a wicked transfer fee.

Ok, so now you’re hopefully a little more familiar with what to look for when choosing a 0% credit card.  Go out there and choose wisely!