0% interest credit cards are a good option for those looking to make purchases, especially during the Black Friday sales period, that are slightly more expensive or out of a customers spending range. With this in mind, it is important to assess both the advantages and risks of using a 0% interest credit card to ensure that customers applying and using one are making the right decision.
What Is a 0% Interest Credit Card?
A 0% interest credit card is a card which does not charge the customer any interest on their purchases providing that the repayments are made on time. Consequently, this type of credit card appears to be a much better option that a normal credit card if a customer depends on the use of one frequently, as credit card providers usually charge interest on any purchases made using them.
Many providers offer credit cards which are interest free for the first few months, meaning that customers will have a 0% interest rate when they sign up for the card.
What Are The Advantages of a 0% Interest Credit Card For Black Friday?
A major advantage of a 0% interest card is that customers can make purchases which exceed their usual budget and not pay any additional interest. During the Black Friday period, many customers take advantage of the chance to purchase products at a discounted price. This will include products which are typically more expensive, with televisions, furniture and most other products on offer for a reduced amount for a short period of time.
Even though they are discounted, these products can still be expensive to purchase, and customers may use a credit card which does not incur interest to take advantage of the sale. In addition to this, the card will allow customers to make their repayments on a monthly basis rather than having to make one singular repayment at the end of the month.
This means that customers making purchases on Black Friday have the opportunity to save some extra money through taking advantage of deals available and then repaying the credit gradually. Furthermore, customers can also use 0% interest credit cards to withdraw money. This type of credit card allows customers to have additional time to repay their debts and simultaneously gives them the chance to build up their credit store providing that the repayments are made on time.
Some credit card providers also offer customers the opportunity to reclaim their funds if the items which they have purchased are faulty.
What Are The Risks Associated With 0% Interest Credit Cards?
The main risk associated with 0% interest credit cards is that customers can get carried away by the thought of not having to pay interest and end up making purchases that they will be unable to make the repayments on.
A 0% interest account only helps customers to save money during the Black Friday period and throughout the year if they can successfully make the repayments on the agreed dates. Many card providers will deduct the amount owed automatically from an online bank account, so the customer is responsible for ensuring that there is sufficient funding available in their account to cover the repayments.
Some customers may also not realise that there may be fees incurred for using a credit card to make a transaction. Whilst this is not true with every individual provider, customers are advised to check the terms associated with their credit card to ensure that they are still saving money when using a card to shop in the Black Friday sales.
In addition to this, some credit cards are only interest free for a limited amount of time. This means that if customers aren’t careful, they can end up being charged interest on their Black Friday purchases, meaning that they do not end up actually saving any money.
Customers trying to transfer their balance to a new 0% interest credit card may also be charged a transaction fee that they are unaware of. This fee will be calculated at a percentage of the amount they are transferring, so the fee increases with the amount of money transferred to a new account.
Should 0% Interest Credit Cards Be Used On Black Friday?
Customers using 0% interest credit cards to make Black Friday purchases should always be aware of the terms and conditions associated with the use of their card alongside when the repayments should be made. If they are comfortable with the agreement and feel they will be able to make the repayments on time, 0% interest credit cards can be a viable option.
Customers who are unsure of when their card is no longer interest free should contact their provider to ensure they are not being charged interest which they do not want to pay or cannot afford.