Friday, 16 March 2012

Student Credit Cards With No Interest

It's important to start building a credit history at a fairly early age. Many companies have special credit cards, with special requirements, that are designed for college students and even for students as young as high school age. Because most students are new to the world of credit the interest rate on student cards is generally on the high side. However, if you are willing to play the game to its fullest, there is a way for you to get the credit card of your dreams and never pay a penny in interest.

Start by finding a site that has a large selection of student credit cards from which to choose. At the end of this article I recommend just such a site. As long as you don't have poor, but simply have little or no credit history, it is possible for you to get a card with an introductory 0% interest rate.

This introductory interest rate is good for 6 months or, occasionally, for a full 12 billing cycles. That means if you qualify for a card you will not be charged any interest for either 6 billing cycles or for 12 billing cycles. The catch is that you must pay your bill on time in order to qualify for the 0% interest rate. Miss a payment or make a late payment even one time and it's game over - you'll start paying a very high rate of interest - in many cases 23% or more.

Treat Your Credit Card Like a Business

So how do you avoid paying interest forever? Keep accurate records of when your billing cycle is and a week or two before the final interest-free payment is due transfer your balance to a different card which has a 0% introductory rate for 6 or 12 billing cycles. Continue doing that each time the introductory offer expires and you will never pay interest on any of your purchases.

The only other thing you need to watch for are any transfer fees. A few cards charge a fee to make a balance transfer, but the majority are too interested in getting your business to scare you off with a transfer fee.

Obviously this system requires two things of you. One is that you keep accurate records and are prepared to close out one account and open a new account whenever necessary. The second thing you need - and this is vital - is to find a site that allows you to compare cards and to see the fees and introductory free interest periods.

By treating your credit cards as a business and making ruthless business decisions when it comes time to switch cards, you can, conceivably, charge to your heart's content for years and years without ever paying a penny in interest.

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