Zero Interest Credit Cards
Get the best credit card reward offers at:
Did you know that it is possible to actually make money using
certain credit cards? These cards are called zero interest credit
cards, particularly the ones which have zero interest on balance
transfers. What you do is you use the credit on the card to put
money into a high-interest bank account then you repay the
card just before the zero interest period expires, and the
interest you have been paid from the high interest bank
account is entirely profit.
Cards have even been used to finance various business
ventures such as movies (including "Clerks") and other types of
business. Some people say that the computer hardware used in
the first stages of the Google search engine, might have been
funded using them!
The other major use of cards which have no interest on balance
transfers is to save paying money on existing credit cards which
do charge interest. The method in this situation is to transfer all
the outstanding balances from cards which do charge interest,
onto cards which don't charge interest. This means you avoid
any interest payments at all (for the zero interest period of the
card in question), and can focus on making payments to reduce
the balance on the card (s).
The concept of the credit card as we know it, was first
introduced in the middle of the 20th Century and are used by
many people, particularly in countries such as USA, Canada and
the UK, while less used in some other countries, notably Japan,
where they are hardly used by anyone except major businesses.
Although companies such as banks and credit unions who issue
cards make their profits by charging interest to people who use
them, the companies have also found that they can get a lot
more people to start using their cards if they offer no interest
payments initially. This can apply to balance transfers, purchase
and sometimes both, although does not so often apply to cash
advances which often get charged a higher interest rate than
other things, as well as sometimes being charged from the
date the cash was obtained rather than the billing date.
As this article shows, zero interest credit cards can be very
useful if used carefully.
Get the best credit card reward offers, visit: