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0% APR Credit Card
We all know that credit cards are expensive, especially if you are in debt with them. So how are some companies able to offer interest free credit cards? The answer is simple, they are offering free credit as a loss leader, that is to say they get customers who will reimburse them all the interest they pay later. Most no-interest credit cards have contracts stating that the initial interest-free period will only last for the first year, after which you’ll be charged the normal rate.
0% APR Balance Transfer
As a way of getting new customers, credit card companies will try to capture customers from other companies by making it really easy for them to make changes. Along with offering 0% interest as mentioned above, they also offer to transfer any existing loan or balance for free.
A combination of the above two points is often taken advantage of by the discerning consumer. If you are making regular payments and due to high loan you are actually paying interest only and not reducing the principal then you may be able to try for joint balance transfer without any interest for the first 12 months Can be This would mean that you would get a full year where all the payments made by you would go towards paying off your loan instead of just paying the interest every month. By doing this, you can even eliminate your debt completely.
You can also take advantage of the above offers in this way. If you want to buy an expensive item. Instead of getting financing through the seller or your bank, you can get a 0 interest credit card and pay for the item that way. Divide the total payment into 12 parts and you have what can be termed as free financing for one year.
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