Zero Interest Credit Cards
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Did you know that zero interest credit card can be used to actually make you money? It can also be a great way to save money. This article will tell you exactly how to do both of those options.
The companies who offer credit cards, which are usually banks or credit unions, make most of their profit from charging interest on the money owed. However, they have found that they can get more customers if they charge no interest for an initial period. This is great news for the consumer, who can get
big benefits from this period of no interest being charged on what they borrow.
To use such borrowing to make a profit, you will need one that offers 0% on balance transfers (rather than on purchases). What you can do is you can transfer the funds to a high interest bank account, then repay the borrowing just before the end of the initial 0% period. The result of this is that all the profit you receive from the bank account is money you have made, without spending any of your own money to do so!
Some people might be tempted to use such capital for other forms of investment, but these are almost always going to carry a significantly higher risk than a savings bank account. For example, such funds have been used to fund start-up businesses, and occasionally this has been successful. Google is reputed to have been started in this way, and the movie "Clerks" was too. However, one should bear in mind that more than ninety percent of all new businesses fail. So the risk is of course considerable.
The other way such cards can be used is to transfer outstanding borrowing from other sources onto the new 0% one, thus
avoiding paying any interest for the initial period. This can enable all repayments to be put towards repaying the existing borrowing.
A zero interest credit card can be valuable if used wisely, but be sure to read and understand all the terms and conditions so that you will know how best to use it.
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