May 26, 2024
12 Months Interest Free Credit Card

12 Months Interest Free Credit Card

12 Months Interest Free Credit Card: Credit cards are becoming a common part of our daily life. They make it easy and convenient to buy things. Credit card companies are always seeking methods to get new clients and keep the ones they have. One popular way is to offer 0% interest rates for a limited time. In recent years, one of these offers that has become more popular is the credit card with no interest for a year. We’ll talk about 12 months interest free credit card, how it works, and the advantages and downsides of using one.

What Is 12 Months Interest Free Credit Card?

A credit card with no interest for a promotional term of 12 months is called a “12 months interest free credit card.” During this time, no interest is charged on purchases made with the card. Most of the time, this promotional period lasts for 12 months. After that, the normal interest rate kicks in. The 0% interest rate is meant to get people to use the card for bigger purchases they might not be able to pay off immediately. People who want to buy a significant item, such as an appliance or a trip, without paying interest on their balance for a year may be interested in this offer.

How Does 12 Months Interest Free Credit Card Work?

Before you can figure out how 12 months interest free credit card work, you need to know how credit cards work in general. Credit cards are revolving credit, meaning you can borrow money up to a certain limit and then pay it back over time. Your credit limit goes up by the same amount every time you pay. Interest will be added to your balance if you keep a balance from one month to the next.

Interest rates on credit cards can be very different from one lender to another and from one person to another. In some cases, interest rates can be 20% or more, which makes it hard to pay off big balances. This is where credit cards with no interest for a year come in handy.

With a credit card that doesn’t charge interest for a year, you can borrow money up to a certain limit and pay it back over a year without paying any interest. This is a great way to make a big purchase or pay off debts with high-interest rates. But it’s important to remember that “no interest” does not mean “no payment.” You’ll still need to make at least the minimum monthly payments on your balance to avoid late fees and damage to your credit score.

12 Months Interest Free Credit Card Pros

  • No Interest Paying: The best thing about a 12 months interest free credit card is that you don’t have to pay interest during the promotional period. You can avoid paying interest on your balance if you make a big purchase during the promotion period. This can save you a lot of money.
  • Can help you manage your cash flow: If you need to make a big purchase but don’t have the money to pay for it all at once, a credit card with no interest for a year can be helpful. You can pay for the item over 12 months, which can help you keep track of your money.
  • Rewards programs: Many credit cards have rewards programs that let you earn Cashback, points, or miles for purchases made with the card. Using a credit card with no interest for a year can help you get the most out of your rewards by letting you buy bigger things without paying interest.
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12 Months Interest Free Credit Card Cons:

  • High standard interest rates: Once the promotional period is over, any remaining balance on the card will start to pay interest at the card’s standard interest rate. These rates can be much higher than the promotional rate, making it hard to pay off the whole balance.
  • Risk of spending too much: An offer of 0% interest can be enticing, but it’s important to remember that you’ll have to pay off the balance at some point. If you’re not careful, using a credit card with no interest for a year can lead to overspending, making it hard to pay off the balance in full before the promotion ends.
  • Fees: Some credit cards with 0% interest for a year have annual fees, debt transfer fees, or other expenses that can take away from the savings you would get from the 0% rate.

How To Get A 12 Months Interest Free Credit Card?

If you have decent credit, getting a 12 months interest free credit card is easy. Here are some things you can do:

  • Look at your credit rating: The major thing lenders look at when considering whether to provide you with a credit card is your credit score. If your credit score is less than 700, getting a credit card with no interest for a year may be harder.
  • Look at the following: There are a lot of credit cards with interest-free periods of 12 months, but they all have different rewards, fees, and other characteristics. Compare the many alternatives and choose the best that meets your needs.
  • How to get the card: Once you’ve decided on a credit card, you can apply online or over the phone. Most applications only take a few minutes to complete, and you should hear back within a few days.
  • Make good use of the card: Be careful to use it well after you get it. Keep to your budget, pay your bills on time, and don’t exceed your credit limit.
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Ten 12 Months Interest Free Credit Card

  1. Chase Freedom Unlimited: The Chase Freedom Unlimited card boasts 0% APR on purchases and balance transfers for the first 15 months. This card likewise does not have an annual fee and gives 1.5% Cashback on all purchases.
  2. Citi Simplicity: The Citi Simplicity card gives you a 0% APR on purchases and debt transfers for the first 21 months. This card also has no late fees or penalty rates and no annual cost.
  3. Wells Fargo Platinum: The Wells Fargo Platinum card gives 0% APR on purchases and balance transfers for the first 18 months. This card also doesn’t charge an annual fee and lets you see your FICO credit score for free.
  4. Discover it Cash Back: The Discover it Cash Back card gives 0% APR on purchases and debt transfers for the first 14 months. This card also gives 5% Cashback on some categories that change and 1% cashback on everything else.
  5. Bank of America Cash Rewards: With the Bank of America Cash Rewards card, purchases and balance transfers have 0% APR for the first 15 billing cycles. This card also gives you Cashback on everything you buy and doesn’t charge an annual fee.
  6. American Express Cash Magnet: With the American Express Cash Magnet card, purchases and debt transfers have 0% APR for the first 15 months. This card likewise does not have an annual fee and gives 1.5% Cashback on all purchases.
  7. Capital One Quicksilver: The Capital One Quicksilver card gives a 0% APR on purchases and balance transfers for the first 15 months. This card likewise does not have an annual fee and gives 1.5% Cashback on all purchases.
  8. U.S. Bank Visa Platinum: The U.S. Bank Visa Platinum card offers 0% APR on purchases and balance transfers for the first 20 billing cycles. This card also doesn’t have an annual fee, and you may check your TransUnion credit score for free.
  9. HSBC Gold Mastercard: For the first 18 months, purchases and balance transfers have a 0% APR with the HSBC Gold Mastercard. This card also doesn’t charge an annual fee and lets you see your FICO credit score for free.
  10. PNC Core Visa: The PNC Core Visa includes a 0% APR on purchases and balance transfers for the first 15 billing cycles. This 12 months interest free credit card also doesn’t have an annual charge, and every transaction you make rewards you.
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How To Make The Most Of 12 Months Interest Free Credit Card?

If you get a credit card with no interest for a year, you should be careful with how you use it, so you don’t get into debt. Here are some recommendations for getting the most out of your card:

  • Set a budget: Before you use your 12-month interest-free credit card to buy anything, develop a budget for how much you can spend and how much you’ll need to pay back each month to avoid paying interest. Stick as closely as possible to this budget so you only spend what you should.
  • Pay your bills on time: It’s vital to make monthly payments because late payments can cost you a lot of money and hurt your credit score. Set up payments or reminders that happen on their own to help you stay on track.
  • Don’t get cash advances with the card: Even on cards with no interest for the first year, cash advances usually come with exorbitant fees and interest rates if you can, try not to use your card for cash advances.
  • Don’t max out your credit limit: Using your full credit limit can make it tougher to pay off your bill during the interest-free period and make it more likely that you will go into debt. To reduce this danger, maintain your balance below 30% of your credit limit.
  • Plan for the end of the interest-free period: If you’re still getting ready, the end of the interest-free period can be a surprise. Ensure you have a strategy for paying off the remaining balance when the interest-free time is through.

Conclusion

A 12 months interest free credit card can help you keep track of your cash flow and buy bigger things without paying interest. But it’s necessary to use a credit card with no interest for a year responsibly and be aware of the risks, such as high conventional interest rates, fees, and the chance of spending more than you have. To get the most out of this 12 months interest free credit card offer, you should have a plan for paying off the debt before the promotional period ends. You can do this by setting up automatic payments or paying more when possible. Avoiding buying anything else with the card during the promotional period is also a good idea. This can make it harder to pay off the balance in full.