When you get a 0 APR credit card offer in the mail, you might be tempted to throw it away because it sounds too good to be true. But look at it carefully before you put it in the circular file. There are clear benefits to having one of these cards with no interest that could help you in ways you don't know about yet.
- Move balances from credit cards with high interest rates.
If you have a credit card that you use a lot but can't pay off, you can move the balance to your new card with no interest. If you're paying 20% interest on another card and can only pay the minimum balance each month, this is a great option for you. You can not only pay off your other balance, but you can also get your buying power back.
- Consolidate all credit card debt to one card.
If you have several maxed-out credit cards, consolidating them onto one 0 APR card is the best way to pay off your debt quickly. Instead of just paying the interest with your monthly payment, you will be able to pay on the principle for the whole introductory period with 0% APR.
- Move loan balances with high interest rates.
If you have a car loan with a crazy high interest rate, this is your chance to pay it off without paying any interest. Pay it off at the bank with your 0% APR credit card, and then make payments to the card without interest to pay off the balance.
- Use no-interest loans to buy big-ticket items.
Plan to buy some furniture or a household item? Want to buy tickets to fly to Europe? Use your credit card with a 0% APR to pay for these things with no interest.
- Work on your credit score.
By paying your bill on time every month and paying off balances on other cards or loans, you can raise your credit score and make it more likely that you will be offered credit in the future.
