Covering day-to-day expenditure without a credit card now is not an easy task. In fact, it is a great help at a time of an emergency to pay for whatever assistance one may seek and for whatever damages that is done. Furthermore, credit cards help immensely at times of a special occasion when you don't have much to cover its cost. Besides these instances, people nowadays use credit card to finance businesses and also to get money to start them.
Although a credit card is handy to pay bills, its number one draw back is its high interest rate. Many people get bad credit histories and even bankrupt due to the high interest charged to their credit cards. The 0 finance credit card is a good answer to this problem. Credit card companies run on interest and when they introduce 0 finance credit cards, it is a good reason to be amazed. Nevertheless, they do and this is only for a small duration.
The 0 finance credit cards apply for purchases made within 52 days with some credit cards and if the cardholder cannot pay the bill during this period, there will be a high interest for the purchases made. Sometimes, the interest rates these cards charges after a set period are higher than the interest rates levied on normal cards.
Amidst all these disadvantages, 0 finance credit cards could be an effective payment method for intelligent users. You have to read reviews of these credit card issuers to understand their terms and conditions before applying for a 0 finance credit card. Most cards offer a period of about three to half-year free interest. If you don't think that you can pay within this time frame, don't apply for such a 0 finance credit card. Nonetheless, it is a great help, if you can settle the balance within the set period, as you don't have to pay interest for the purchases made. A 0 finance credit card that offer even more than one year interest free period are also available. Try to find one that offers the maximum period of interest free.
When the 0 interest rate period ends, the 0 finance credit card companies set very high interest rate on the users. If you have not paid the bills by that time, you would be in a real mess. They generally charge the balance with the high interest rates and you have to pay interest again over the interest rate as well as the balance. Therefore, with a 0 finance credit card you should pay off the balance right within the interest rate free duration to avoid the high interest rate.