Credit Cards: Interest Free Cards Essay

886 Words 4 Pages
There are numerous credit card and current account deals on offer to choose from and it can be a daunting task to find the one that suits you best. For those with access to the internet there are many useful money comparison websites. For those who do not have access to the internet many Sunday Newspapers have a Money Section which list the best deals, however these are not as comprehensive as the internet listings.
Before searching for the best deals it is wise to consider exactly what your requirements are to enable you to narrow down the selection available to you. When searching for credit card deals there are a number of different incentives depending on your circumstances..
Interest free cards can be a useful way of spreading the cost of a large purchase over a long period. There is usually a period of grace between 3 and 18 months when no interest is charged on the balance, however, once this period expires the interest rate can be very high so the idea is not to have an outstanding balance at the end of the no interest period. Provided you are strict enough to pay off the debt before this date this is a very good cheap way of borrowing money but if you don’t pay off the debt it can work out to be very expensive.
Balance transfer deals are useful if you have an existing credit card which has an outstanding balance on it and are looking to reduce the interest payment. Some card providers tempt new customers with 0% balance transfer cards which allow a period of time…

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