Advantages of a 0% Interest Credit Card

Having a 0% interest card is absolutely phenomenal. Let's run through the massive benefits of paying 0% interest on your balances, and why you should seek out a zero interest card offer whenever you qualify.

1. Faster payoff - A zero interest credit card will allow you to make the most of each monthly payment on your card. As each dollar you send to the credit card company will attack your balance, you can make quick work of outstanding debt.

2. Cash flow benefits - Many people use zero interest credit cards to smooth out their cash flows for emergencies or months where they spend large amounts of money. For example, imagine a scenario in which you had to pay $2500 to make a repair to your car. Thanks to a zero interest credit card, you could pay a small amount towards that repair for several months without paying interest. Alternatively, you might use a 0% interest credit card to finance large expenditures like Christmas shopping trips, engagement rings, or other large purchases for one year or longer.

3. Eliminating other balances - Some use 0% interest credit cards to pay off the remaining balances on car loans or education loans after a few years of consistent payment. For example, you might have one year left on a car loan at a 7% rate. However, you could move the balance to your credit card and pay 0% for the year, while making a lower monthly payment to pay off the balance in full in the same one-year timespan.

4. Rewards - Often, a 0% interest credit card also makes available large rewards and cash back credit card options that make it even less expensive to shop at all your favorite places. Use your rewards to pay for things like meals out at restaurants or for flights to your favorite destinations.