When A No Interest Card Would Suit You
Why choose an interest free card? Here are some situations that may benefit from an interest free offer.
Going On Holiday
There’s no denying it, travelling is expensive. But with an interest free offer, you could cover the costs of your trip, plus your holiday spending, while paying nothing in interest. This could include flights, accommodation, car hire, tours and more. Spending on a rewards card could offer even more benefit, allowing you to earn rewards points on all your travel spending. Just be aware of any foreign transaction fees if you are spending overseas.
Buying Something Big
It’s not always possible to cover the entire cost of larger purchases upfront. Whether it’s a new washing machine, a new bike for the kids, or any other expensive item you don’t have the cash to cover, an interest free offer could help you pay it off over time, while you pay nothing in interest.
Covering An Emergency Expense
Emergencies can happen at any time, and if you don’t have the savings to cover the cost, you may be in trouble. An interest free offer could help you cover the cost of surprise costs such as vet bills, car repairs, or even a new boiler, as long as you get approved and get your hands on the card quickly.
Using An Interest Free Card
Like any offer, understanding how an interest free offer works can help you make the most of it. Here are some tips that could help you take full advantage of 0% purchase offer.
Plan Your Spending
If you only want to use the card for everyday spending that you know you will pay off within the intro period, this doesn’t really apply to you. However, if you are planning a large purchase – or even a few large purchases – it can be a good idea to make a plan first.
Say you’re planning on using the card to cover the cost of renovations at home. Create a budget to work out how much you will need to spend and when. This should help you work out how much you will spend overall, so you will know what your repayments will need to be to pay it all off within the intro period.
Plan Your Repayments
Making the most of an interest free offer means paying off your balance before interest starts accruing. It’s not a great idea to just keep on spending without having a plan in place to pay it back. Knowing you are paying no interest on your purchases can make it easier to overspend, buying things you would not normally buy.
Having a repayment plan with automatic repayments set up can help you keep on top of your spending, making sure you pay off what you owe within the intro period. It can help to reassess your balance every month or so to make sure you are paying off enough with each repayment.
Understand Your Card
What happens at the end of the introductory period? How much interest will you pay on new spending? What interest will be applied to your remaining balance? If you think you may carry a balance once the intro period ends, consider how much that will cost with the standard purchase rate in place.
Time to check out the options? Take a look at the great range of interest free credit cards right here on CreditCard.co.nz and apply today.