Great Uses For A 0% Introductory Interest Rate

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Photograph Courtesy Of Geralt
Photograph Courtesy Of Geralt

Consumers that have good credit regularly receive solicitations for additional credit products in the mail from lending companies of all types. Sometimes, they receive advertisements for credit cards that offer a 0% introductory interest rate for a predetermined period of time. These types of credit cards can be a great financial tool is you understand how to use them properly to get the maximum benefit. Here are some great uses for a credit card with a 0% introductory interest rate.

Making A Necessary Expensive Purchase

Credit cards that have a 0% introductory interest rate are good to use when there is a necessary expensive purchase that you need to make and you know that you could pay the entire amount in a couple of months without having to dip into your savings. Examples of purchases that would fall into this category include expensive vehicle repairs not covered by insurance, home repairs and renovations, and furniture purchases. If you intentionally get the credit card to pay for this purchase, you will have the entire introductory period to pay off the balance with no interest charges added to the total. The introductory period is typically between three to six months.

Paying Off High Interest Credit

If you have a balance on a credit card with a high interest rate, you can save money by transferring the balance to a credit card with a 0% introductory interest rate for balance transfers. This ensures that every dollar of your payment goes towards paying down the balance, allowing you to pay off the amount much more quickly and potentially saving you hundreds of dollars in interest payments. Once the transferred amount has been paid off, you can put the credit card away for use in the future. Having the available credit on your credit report may also help boost your credit score.

Things To Consider

When using a credit card with a 0% introductory interest rate, it is important to only charge an amount that you will be able to pay off before the end of the introductory period. Failing to pay off the entire amount will subject you to interest charges that may be assessed at double-digit interest rates. It is important to read all of the terms and conditions associated with the credit card to ensure that you know when the introductory period will end and how future fees and charges will be assessed.

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1 Response
  1. The problem here is the behavioral aspect of finance – people who are very debt prone are likely to continue to accumulate debt, even if they do try balance arbitrage.


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