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Discussion in Credit Cards started by Earthmama1 • Mar 2, 2014.
Anyone know of a credit card that does not have any interest when you take your time paying it back?
No credit card will exist like that, it is unsustainable for the bank. That said check out prepaid or re loadable debit cards, probably just as convenient as a credit card and you don't have to worry about interest. That said you don't get to loan money out either as you would with a credit card.
I have never seen a credit card with no interest. There are some deals occasionally that allow you to finance something at the time of purchase with no interest for x amount of months. You can sometimes find these type of deals when buying electronics, jewelry, and many other things. But, I've never seen a credit card that has no interest.
As others mentioned, there's not going to be a card like that long term. Credit card companies have to be able to make money somehow and that's through interest and late fees. You can certainly find some that will offer 0% APR for the first 60 or 90 days (sometimes longer), but make sure you're going to be able to pay off whatever item it is in that amount of time. The interest fee on the other side is usually pretty high after that, so be careful.
Some cards will offer zero interest on a balance transfer for 2 or 3 months. These cards will then charge interest as the company can't take the risk of loaning you money without expecting some payment in return. This might be an option if you need a couple of months to get things in order and can pay down some of the principle in that period, but generally - as Jessi said - the interest can be high after that.
These do exist. Often times, it's a 3, 6, or 12 month promotional period. We put our wedding bands on a card that offered 6 months 0%. A few years ago, I had a Barclay card (applied through the Apple store) that offered 0% for 12 months. I paid about $135 a month for a year to pay off my MacBook Air. If you can find a deal like this and can qualify, it's great for major purchases. Make sure to pay off before the promo expires, or you may have to pay all of the interest that would have occurred.
Yes, they do exist. You do have to have pretty good credit to qualify for one, though.
Good point. Just like a car dealer that is offering 0% apr for 3 years - not everyone will be able to take advantage of this offer. You will need to have a good credit score and history. It's a good idea to keep on top of your credit and make sure that you're able to take these offers, before applying for a 0% card.
They do exist, they are very often promotional, and every finance expert will tell you to avoid them at all costs!!! The thing is, they might offer a grace period, but the whole point is to get you to rack up a big enough debt that the grace period isn't long enough to pay it back. When the grace period ends, the interest they slap you with is often twice that of a normal credit card. Honestly, the world needs to change its entire perspective on credit card spending. If you don't have the money for something, don't buy it. Buying something on credit ultimately raises the cost when you end up paying all the interest, and if you really considered what you are paying, you might think twice about how much you really "need" the item in the first place. Too many people think it is acceptable and in fact preferable to live outside their means. If you want a "no interest" credit card, just plan on paying your balance in full at the end of every month.
Usually the only way to have a credit card with no interest is to pay off your full balance every month. There are cards that have promotional interest free periods for a short time, like 3 months, but if you can't pay the card off during that time period, you get slapped with a lot of interest.
Islamic banks mostly offer this kind of CREDIT CARD and it is called the AMANAH banking scheme.. you buy an item and you pay it on a 3 to 12 months equal payment at zero interest. They will just charge you with a service fee.
Stores or malls will sometimes have tie ups with credit card companies that allow customers to charge and then be billed three to six months later at no interest. You can also buy gadgets and pay it over a period of 12 months at zero% interest. There is no service charge at all. Of course, once the amount is charged, you'll have to pay interest if you fail to pay the amount in full. Some banks don't allow installments to be rolled over to the next payment period which means that the credit card holder will have to pay the full installment amount or be tagged for default.
I usually see these types of promo from credit cards balance transfers, but the 0 interest is only for a limited time. You'll save money if you can pay off the debt within the specified months without interest. I've also seen low interest rates like Barclay credit cards, or some are promos that after a specified limited time the apr will go back to the usual % of interest. It's not good to have too many cr. cards for in the end you still have to pay the credit card debt.
Yes, all the credit cards I have seen that are zero interest are just rates that are promotional rates available for a short period of time. These cards may be good in the short term but they are not going to last. Credit card companies make money from customers having to pay interest on cards, so a zero rate is not going to do them any good really.