Finance Credit

Zero Percent Interest On Credit Cards

Introduction

The zero percent credit cards are common today, as the clients are excited to use this option, allowing them to buy appliances and other items, and to pay for them in monthly rates with no interest. It is simple, and the program is available for any payment made with the respective credit card. However, you will have to buy the respective objects from the authorized shops that have a partnership signed with the bank that issued the card in the first place. 

History

You can easily find the stores that offer the zero percent credit facility, and the number of rates available. The number of rates can be different from one store to the other, even if you are using the same card. If you buy some clothes that cost you a few tens of dollars, you will have to pay the money back in three or six rates. However, for large and expensive items, it is normal to pay in six or 12 monthly rates, and for the really expensive objects, the period might be extended even more.

The locations of the stores with zero percent credit are signaled with specific materials, and the list of partner shops is updated constantly on the site of the bank. You can pay with this credit card at the partner’s store, asking for X rates. The bank will also issue monthly bank extras that will contain all the operations you have done in the latest period. 

Features

However, as any other card, the zero percent credit has its conditions also. For example, you will have to pay the monthly rate until the agreed date every month. Otherwise, an interest and also penalties might apply. You can also follow the monthly shopping report, a report that states all the objects you have bought in the latest month, and also their prices and the shops where you have bought them from.

The zero percent credit card might also have a reward points program attached. Every time you use the card to pay for the objects you buy, you will accumulate points. Depending on sum you spend, the points can be used to get 15 % or even more money back. You can use the respective money to buy even more items, or to reimburse the monthly rates. Make sure the POS of the store is owned by the bank that issued the card, otherwise, you can’t benefit from the rewarding program. 

Tips and comments

In case you are the owner of a loyalty card issued by one of the partner’s shops, you will accumulate the respective points. This way, using the card, you will win bonuses, points, and you will also benefit of a rates system with no interest. If you want to use the points to pay for services and appliances, you will have to announce the cash register operator. Moreover, you can choose to pay a part of the goods with points, and another part with cash. The system is beneficial for the client, but also for the partner shops that are able to attract new clients, and also for the banks that are able to attract clients with this service. 

By Stanculescu Mihai Bogdan, published at 01/06/2012
   Rating: 4/5 (10 votes)
Zero Percent Interest On Credit Cards. 4 of 5 based on 10 votes.

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