Advantages of no interest credit cards.

        Many companies allow the opportunity to purchase their products by making payments at no interest or by delaying interest payments. The "90-days same as cash" and "no interest for one year" programs require you to apply for their company's credit card which allows them the opportunity to give you a grace period for making payments. The programs are great if you are disciplined enough to pay for the product in full before the interest free offer expires. If the product is not paid in full, then you will be shocked with a large interest charge that will include all the interest accrued for the months in which no payment was received, including the grace period. You will also realize the interest rate is high, thus causing you to spend a great deal more for the product than originally anticipated.

        NOTE:: Read the fine print on the credit card application.

        The use of no interest credit cards can enhance your purchasing power. If you have the money to purchase a product, you should use the cards to delay payment instead of paying in full. Your money will then remain in your bank account earning interest for you instead of in the company's bank earning interest for them. Although, some companies require minimum monthly payments for the introductory period to prevent interest from being applied. In many cases, the savings received by keeping the money in your bank account will be lost due to the postage to mail the payment. Therefore, typically if a minimum monthly payment is necessary, then the offer will not provide a benefit.

        Once the special offer is over and the balance has been paid, then cancel the card to clean up your credit report.


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