Interest free credit cards

First of all, be informed that even if there is really something called ‘free lunch’, and you could find it and have it, you can never find something called interest free credit cards. Even the bottom most credit card seller with a ‘must have at least a single customer today’ situation, would not offer such a card. But if you ponder over the fact that you heard somewhere about such cards, it should be the normal ones that offer you an interest free period, in which your purchase would not attract any interest. And there are so many ifs and buts attached to this kind of offer, if you care to listen attentively. The payment should be made exactly before the announced due dates and in the right installments. There is no let even for a single installment.

Sometimes this offer is tied or restricted only to some select goods or some select establishments. When you apply for the interest free credit cards, you should see if that has the lowest fees and lowest charges, associated with your account.

If you are a great spender with credit cards, and you have this thought that you need to save those countless dollars spent on the credit interest, there is this credit card for you. It is like your usual credit card, but the credit’s interest rates are low. Actually they are very low indeed. Like you heard at the beginning, sometimes they are interest free. Zero interest. But you must know how to use these cards, for if you don’t, it might backfire and the entire intention is lost.

Most of the so-called interest free credit cards actually offer an Interest Free Credit Period. This would vary according to the time of the year, the cardholder’s repayment schedules and many more factors. You will receive notifications from the bankers that your card gets an interest free credit period of up to 40 or 60 days from the date of purchase. But the offer is valid only if the merchant submits the charges in time. There will be some interest levied (about 3 to 3.5 %) if you happen to carry forward your outstanding balance. The percentage mentioned is monthly, not annual.

Sometimes it is the cashback offers that light up your skies, in place of the interest free credit cards. In this scenario, the cashback will be more (about 5%) if the expenditures were made in Railway, Hospitals and Medical stores. It will be less (About 1.50%) if the purchases were made in Grocery, Dept Stores, Supermarket and Restaurants. This varies from credit card to credit card.

But you have to read the fine print once more to make sure that you get the cashback, or whether you really should be happy with this offer of cashback in the first place. The fine print would say something like this; “The cashback will be credited to your interest free credit cards accounts in the next month’s statements subject to the condition that the total amount due to be paid up in each of the current statement is $1000 or above.” How about that?