Interest Free Credit Cards

Free money! Sounds good, but beware Interest Free credit cards are not always Interest Free

One way to avoid racking up debt on credit cards is to take cash rather than plastic when you go shopping, and have a list of items you are supposed to buy within your budget; this way you can keep track of your spending and not be tempted to overspend.

If you prefer not to shop this way, you can at least opt for an interest free credit card; this isn’t a card that allows you spend as much as you like without ever paying interest, but rather a product that provides a generous period of time before which interest is charged.

Interest free credit cards often offer interest free credit for up to 56 days on purchases, meaning that you have 56 days to clear your balance in full, and if you do so you won’t incur any interest at all.

Caution should be used however, as most companies charge interest on cash withdrawals immediately, and cash does not quality for this interest free period in the same way that purchases do. It’s important to try and make use of any interest free credit card period offered by your lender, as the interest charged on credit cards can be as high as up to around 18%.