Username:   Remember Me

Uber Articles {Über (ger) adj. above, beyond }

- Above and Beyond a Mere Article Directory


Interest Free Credit Cards: A Guide To Use Them

By Ferdinand Eusebio

The money that is given by a customer as interest charges on credit card is the main source of profit for any financial institution issuing the credit cards. A credit card allows you to make purchases, pay off any bills even if you fall short of money in your current account.

A credit card makes loaning from the bank simpler and easier. After using the card, the bank will then charge a certain rate for the amount of money borrowed. This will add up until the customer is able to pay for the debt. The charge is usual a percent interest of how much you have actually used up. This is how the banks earn.

But, few banks offer credit cards which are interest free. So, the question is what is the bank’s source of income from these cards? Are there any hidden charges on these cards that consumers are not aware of? Well, that is of course not the case. The interest free credit cards do not come with any hidden charges. You need to understand how these cards work for the bank and also how you should use these cards to derive the benefits from these cards.

The zero interest credit cards allow you to borrow money without any interest charges on the money borrowed for only a limited time. But this time period changes from one credit card Company to another, and also from one card to another. After the limited period gets over, these interest free cards resembles any ordinary credit cards and behaves as per the cards policies.

But, why do banks sell these interest free credit cards to the customers? The main idea is to pull more customers to their bank from other banks. A consumer who has credit card which charges high rate of interest will have higher dues to pay off. To avoid the debt to add on the customer would like to move the debts to another card which charges lower rate of interest. Thus, moving the debt from a card which charges high rate of interest to a card which charges no interest for the initial few months or weeks will allow the customer to buy more time to pay off his debts.

Another use of a zero interest card is to allow the person to make purchases as if he has made the purchase in cash, given that he pays the bank back within the period of no interest. But this can be counterproductive for the consumer in the sense that he would frequently make purchases without thinking that the grace period might end soon.

A credit card without any interest charges for a limited period offers huge benefit to a very organized person who pays all his bills on time, especially if he falls in an emergency situation like for example hospitalization due to accidents.

An interest free card can be beside you not only for any dire events but also any unexpected happy events like a sale in the nearby shopping mall. A card without any interest charges will be of great help in such situations.

Maintaining a good credit performance would let you have numerous interest free credit cards from various banks. If you are a responsible person and can efficiently manage your spending habits then these cards can be of lots of help.

Are Interest Free Credit Cards right for you? Check our site and learn whether you can handle having this type of credit card in your possession.

Article kindly provided by

Topics: Credit and Debit | Comments Off

Tags: , , ,

Article Citation
MLA Style Citation:
Eusebio, Ferdinand "Interest Free Credit Cards: A Guide To Use Them." Interest Free Credit Cards: A Guide To Use Them. 10 Jul. 2010. 24 Aug 2014 <>.

APA Style Citation:
Eusebio, F (2010, July 10). Interest Free Credit Cards: A Guide To Use Them. Retrieved August 24, 2014, from

Chicago Style Citation:
Eusebio, Ferdinand "Interest Free Credit Cards: A Guide To Use Them"

Reprint Rights

Creative Commons License
This article is subject to a revocable license under a Creative Commons Attribution-No Derivative Works 3.0 Unported License, which means you may freely reprint it, in its entirety, provided you include the author's resource box along with LIVE VISIBLE links (without "nofollow" tags). We may revoke the license at any time with or without cause. You must also include the credit to

Comments are closed.

Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.
  • RSS Feed

    RSS for Credit and Debit

  • Plugin UAW into your sites and start receiving fresh, unique and niche relevant content today and everyday!