Zero Interest Credit Cards Work Short Term

No, zero interest cards are definitely not a myth! If you are one of the countless people with credit card debt and high monthly interest payments, 0 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 cards and moving to zero interest cards that offer temporary relief from what seems like never-ending bills.

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 0 Interest Cards Work?

Some of the leading credit card companies such as Discover, Citibank, Amex, Chase, and Bank of America offer no 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.

When To Use Zero Interest Cards

Consumers with several credit accounts may find it useful to transfer those balances to one new 0 interest card. This is especially true if those smaller balances carry high interest rates.

If you have three or four credit cards with interest rates of 18-36%, you may be paying more for interest each month than you pay to reduce your debt.

By transferring those smaller debts to one new credit card that provides one full year of 0 interest, you can be certain that every penny you pay each month will apply directly to reduce your debt load.

Pay Off Debt Quickly

Credit card debt can be deceiving to consumers. Relatively low balances and very low monthly payments can provide the illusion that credit debt is manageable.

However, if the interest rates increase the small monthly payments will increase. Truth is, if you pay only the minimum due on your credit card each month, it will take years to pay off even a relatively small debt.

In the end, the amount of interest paid can be twice the amount if the debt itself. By exercising financial discipline, a 0 interest credit card can provide a method to pay off debt quickly and eliminate debt altogether.


If you transfer several high interest credit balances to one new card with no interest you can pay the entire debt before interest begins to be added to the new account.

Take the total amount of debt transferred and divide that by 12. If you can find a way to make that payment monthly, you will be debt free in one year.