Cutting down your interest payments with a credit card interest free

In these difficult financial times, wouldn’t it be nice to be able to get a credit card that’s interest free?

Unfortunately, all credit cards charge interest. However, it is possible to avoid paying any interest if you get the right card and use it smartly.

For the most productive deals, you should look for one with an introductory interest-free period. This can work in one of two ways: either you get an interest-free period on balance transfers, or you get an interest-free period on purchases. Some credit cards actually offer both.

However, to avoid paying any interest at all you will need to make sure that the balance is paid before the interest-free period comes to an end.

Otherwise, the best way to avoid paying interest on your credit card is to pay your outstanding balance off on time each month. Most credit cards come with an interest free period on purchases. It means that whenever you make a purchase with your credit card, you won’t have to pay for that purchase until the due date for the bill comes around, and you will only start paying interest on that purchase if you don’t pay off your full outstanding bill. Credit card interest free period for purchases in that way can be a maximum of 60 days, depending on your card, its payment date, and when you buy things.

An interest-free introductory period on purchases is very alluring. You may get up to one year at 0% interest.

An interest-free period on a balance transfer can be useful if you’ve built up a large balance on another card. Transferring the balance to an interest-free credit card can give you a lot more time to pay – up to 16 months on some cards. However, most card companies charge around 3% as a ‘handling fee’ so remember to bear that in mind.