The reality of interest-free credit specials

Do not fall into the wrong type of interest-free traps; look for these options to help you out.

11:53 05 January 2014

If you have ever heard of interest-free credit, you can usually be sure that it comes with some unpleasant aspects. The good news is that not all of the interest-free credit options are hiding tricky requirements and sneaky terms.

Here are a few points to keep in mind if you are looking for truly beneficial interest-free credit.

• Overdraft fees—certain financial institutions allow overdrafts up to a specified amount without any interest. Keep in mind that most of the time the interest-free status is only for a limited period so be sure to repay before it expires.

 

• Credit cards—if you have a credit card, you should have the ability to put a purchase on credit and as long as you are able to repay it within the grace period you won’t be charged interest. There are also some credit cards, which offer interest free use of the card for a certain period of time, or on specific uses such as balance transfers. This is a great opportunity to pay off some debt at higher interest rates and take advantage of an interest-free offer.

 

• Alternate financing—there may be some stores, which have occasional specials for no interest. Again, this is typically for a specified period of time, and may even be limited as to the types of purchases to which the deal applies. Be sure to read all the fine print so you know about any potential issues.

 

• Be cautious—in general, it is a good idea to be a little cautious about any deal that sounds too good to be true. Make sure the company is legitimate and ask friends and family to find out if they have heard anything about the company. They may also be able to warn you of any tricks or pitfalls.