Introduction
Credit cards are cards issued by financial companies that allow the individual owners of the cards to borrow short-term funds from the said financial company. These credit cards are usually used at the point of sale and interest for that particular borrowed sum is charged after a month. Credit card with zero balance or 0 balance credit cards are those cards with no external borrowing. Ideally, it is recommended that you maintain your credit cards at a zero balance in order to reduce the risks of running up high rates of interest. There are a lot of companies that offer 0 balance credit cards as an introductory offer in order to attract customers. In this article we will discuss various tips to use such credit cards wisely. Those who have run up a high credit card bill will find these tips very useful.
Step 1
Tip 1:
These introductory 0 balance credit cards offer you the choice to borrow funds at a zero per cent interest rate. Once you come across such offers, do not hesitate to sign yourself up for such a credit card. They offer you a unique way to pay off existing debts at a zero per cent interest rate. These offers are very useful and an intelligent investor can use these offers to their advantage.
Step 2
Tip 2:
In case you have outstanding bills that need to be paid in your existing credit cards, you can pay them off with your 0 balance credit cards. These new credit cards can be used to pay off your existing bills. This can be done as long as you can payback those debts till the offer of zero per cent interest lasts. In this way all your existing bills will be consolidated in a new bill for which you don’t have to pay interests.
Step 3
Tip 3:
These 0 balance credit cards can also be used to buy other things within your credit limit. You can do so without having to worry about paying exorbitant amounts of interests and running up your credit card bills. Of course, you should try not to spend more than you can hope to repay within the introductory period of zero per cent interest.
Tips
Tip 4:
In case you don’t already have a credit card, these 0 balance credit cards are the ones you should consider. Before you apply for a credit card, you must first find the most lucrative deal that suits you. You should ideally go for 0 balance credit cards that offer you zero per cent interest for the longest time. There are various websites that compare these offers and with a bit of research, you can find a very good offer.
Tip 5:
The things you must beware of are the various pitfalls of such deals. Always inspect the offer documents of these 0 balance credit cards thoroughly. They may charge unrealistically high late fees during the offer period or have very high interest rates when the offer ends. You must weigh your options carefully and avoid such traps.
In conclusion, 0 balance credit cards are very useful in some circumstances. They offer very lucrative offers and options to the intelligent investor. If used correctly, you can use these as tools to stabilize your financial footing when you run up high bills.
Source
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