All You Need to Know About Interest-free Credit Cards
In order to buy something you need but can’t afford, looking for the best interest free credit cards could be your best bet. Sometimes an unexpected expense causes you problems, like a broken freezer or a boiler that needs replacing. If you haven’t got the cash available to be able to buy a new one, then putting that cost on a credit card that offers 0% interest for a certain period of time may solve your problems.
How Do They Work?
The whole premise of these cards is that they allow you to transfer a balance or make purchases, and for the whole of the interest free period you can pay off parts of the balance and there will be no interest accrued. Take note of the conditions of your card as some have an interest-free period for balance transfers whereas all purchases will accrue interest until the initial balance transfer is paid off. Make sure you know exactly what you will be charged for.
Advantages and Disadvantages of the Best Interest Free Credit Cards
The most important part of getting the best interest free credit cards is being disciplined when paying off your debt. You need to work out how much to pay off each month so that you can pay the whole balance before you reach the end of the interest-free period. If you don’t do this then you will be charged interest as soon as the free period ends, and it will negate the point of getting the card in the first place.
The other thing you need to remember is that the minimum repayment must also be paid each month. If your planned repayment is greater than this then you don’t need to worry, but missing it will mean you may be charged a late payment fee and are also in danger of losing the whole interest free period of the card.
How to Prepare Before You Look for Interest-free Cards
When you are looking for cards, the interest-free period that you are offered and the general terms of the agreement will depend upon your credit score. The better you credit score is, the better rate and terms you will be offered, particularly the length of time that you have the interest-free rate for. If you have bad credit or if you think your score could do with improving, take a look at one of the three credit reference agencies that list your rating, Experian, Equifax or Callcredit.
One way to make sure your credit score is the best it can be is to try not to make too many applications for credit at any one time. If it looks like you are desperate for credit, some card lenders will look unfavourably on this and may refuse you. Luckily, it is possible for soft searches to be done, which will give card lenders an idea of whether you would be a good risk or not but will not affect your credit file.
How to Find Interest Free Credit Cards
Finding the best interest free credit cards isn’t hard as long as you come to us at Bonsai Finance. Our special connection with respected financial institutions and card lenders means that we can find you the best deals that they are offering. Our partners will have competitive 0% deals that will stand you in good stead if you have a balance you would like to transfer or a large purchase that you need to buy. Just make sure you manage your finances wisely and remember to pay off the minimum each month and the whole balance by the end of the interest-free period, and you will have an excellent, hassle-free experience.