Paying with your zero or minimum interest rate credit card during holidays:
Zero or low interest rate offers are best for spending during vacation period. Many companies offer different promotions during vacation time using which you can pay through credit cards on no or minimum interest rates. You have to take into consideration different options and select the one with maximum benefits and minimum costs. But always take into consideration the time period for which the zero percent promotions are available and what the interest rate will be once the introductory period comes to an end. Other costs to consider include late payment penalties, balance transfer fees and annual fees.
Fulfilling emergency needs:
These credit cards with zero or small interest rates are a good option to use when any urgent situation arises. If you know you can pay off this loan once the situation becomes normal, you can opt for this feature. But make sure that you can pay off the loan within zero or low interest rate period otherwise the debt will just increase with time.
Paying off large debts:
What to do when you are stuck in debt and despite of making all efforts, are unable to make payments? Balance transfer feature may provide a solution to your problem. By transferring all your balances to just one card that is offering zero percent promotions will lower your costs significantly. It will simplify your payments. All you have to do is make one monthly payment and do it on time. Otherwise late payment charges will further increase your costs. If you continue to use the previous option, you will have to make more than one payment including interest rates on all cards. Further, if you are not able to pay on time, late payment charges will enhance the costs. So, the better option is to transfer all debts to one card and take benefit of zero or lower interest rates.
Using low interest rate cards to pay for large or one time purchases:
You have moved to a new city and are struggling to settle down in that city, arranging all the house hold appliances may be a difficult task. Zero or low interest rate cards may be a good option to go for. You can use this offer to pay for all the things purchased without having to pay high interest costs.