Are Zero Interest Credit Cards a Myth?

Definitely Not! If you are one of the countless people with credit card debt and high monthly interest payments, zero interest credit cards may be able to help you relieve the stress of those payments. You could also save money and pay down your debt faster.

Many people are canceling their high interest credit cards and moving to no interest cards that offer temporary relief from what seems like never-ending bills. Both customers and credit card companies can benefit from zero interest credit cards. Customers are able to save money on the interest they would have to pay while lenders gain new customers and the hope of making money after the introductory rate period ends. Consumers also get the opportunity to pay off the principal balance, instead of seeing their payments barely make a dent in their overall balance.

How do Zero Interest Cards work?

Some of the leading credit card companies such as Discover, Citibank, Amex, Chase, and Bank of America offer Zero interest credit cards for consumer and business use. The initial goal is to entice new customers with an introductory period of six to twelve months with no interest. Following this period, your zero interest introductory rate will go up. Make sure you research the fine print of the offer to find out what this rate will be. Some interest rates go as high as 20% which may be higher than your present low interest credit card.

Hidden fees are also one of the ways credit card lenders make money. Some credit cards require one monthly purchase with a minimum transaction amount. Failure to make this purchase can sometimes lead to fees or penalties. Another way lenders make money is when customers fail to pay on time. Missing a monthly payment even by one day can lead to serious fees or penalties.

If you are looking for a way to ease the expense of paying on your credit card debt, consider switching to a 0 interest credit card offered by one of the leading credit card companies. Just remember to watch the end of the introductory period, pay all bills on time, be careful of hidden fees, and research your interest rate once the introductory period ends. Following these simple guidelines can help you eliminate the burden of high interest rates and manage your credit card debt.