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Summary: Zero percent interest on a credit card is usually offered by credit card companies for a limited time in order to lure customers. Use balance transfers to move credit debt around once the initial low-interest period ends with advice from a registered financial consultant in this free video on money management.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
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"This is financial adviser Patrick Munro talking about, "How does zero percent work on a credit card?" Credit card companies are mindful that they need to appeal to the consumers with the very lowest rate possible. Well, you can't get a rate lower than zero. But it is for a limited time and credit card companies know that consumers get comfortable with one particular credit card and then they will stay usually beyond a period of time and then they'll be in a profit situation beyond that. So take advantage of your zero percent credit card offers but if you come to the end of the cycle and the zero percent of course expires with one credit card company over on the other hand you may receive another offer that does have a fresh schedule of time available for zero percent. In which case you use what's called a balance transfer and you move you move your account from one account over to the new zero percent situation. That's all available if you have good credit so make sure that you keep your credit card balances low and you keep your credit card education high and you keep your credit in a great situation. This is Patrick Munro talking about zero percent on credit cards."
eHow Article: How Does 0 Percent Interest on a Credit Card Work?
Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.
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