| If you've got a debt but you don't want to | | | | Credit card companies have caught on to |
| pay any interest, the answer could not be | | | | credit card jumpers. Many of them now impose |
| simpler. All you need to do is find a credit | | | | a balance transfer fee of around 2%.This |
| card with a 0% interest rate on balance | | | | makes rate surfing less attractive. There are |
| transfers. This is an introductory offer | | | | still cards that do not charge this fee, |
| commonly offered by credit card companies. | | | | though, so it's worth shopping around. |
| | | | |
| How Long Does The Interest Free Period Last? | | | | How Else Can I Get An Interest Free Credit |
| | | | Card? |
| Most credit card companies offer the low | | | | |
| balance transfer rate for a fixed period. | | | | The other way of getting an interest free |
| There are two ways in which this happens. One | | | | credit card will work well for people who are |
| way is to have an expiry date of a particular | | | | organised about managing their money. Those |
| month and year. The second is to specify that | | | | who always clear their balances in full will |
| the introductory offer lasts for a certain | | | | be able to put their monthly spending on a |
| period from the issue of the card. This can | | | | credit card and clear it at the end of each |
| be as short a period as three months or as | | | | month without ever paying any interest. |
| long as 12 months. | | | | |
| | | | Even people who don't clear their balances in |
| Some introductory credit card offers also | | | | full will be able to take advantage of the |
| give a 0% rate on purchases. This means that | | | | interest free periods offered by each credit |
| for a fixed period (usually about six months) | | | | card. These can be as much as 58 days. All |
| credit card users can spend as usual but pay | | | | credit card users need to do is make a note |
| no interest. | | | | of when the interest on the balance is due |
| | | | and pay off the outstanding amount before |
| What's The Catch? | | | | that. |
| | | | |
| Credit card companies hope that purchasers | | | | Paying The Price Of An Interest Free Credit |
| will keep the money on the card after the | | | | Card |
| preferential rate has expired. However | | | | |
| there's no rule that says that credit card | | | | It's best to make the payment a week in |
| users have to do this. To avoid paying any | | | | advance to give the payment enough time to |
| interest, credit card users can switch their | | | | clear. Otherwise there could be a nasty |
| balance to another card. This is known as | | | | surprise in the form of an interest payment. |
| credit card jumping or rate surfing. The | | | | Credit card companies also have different |
| advantage of rate surfing is that credit card | | | | approaches to how they apply the payments |
| users will reduce their debt because the | | | | people make. If your credit card company |
| payments they make will not simply be paying | | | | applies payment to new debt first, then older |
| off interest. | | | | spending could incur an interest charge. |
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