Zero Percent Credit Cards Info

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.