Interest Free Credit Cards

An interest free credit card offer can be very enticing. Keep in mind though that one of the ways to help your credit rating is not to overdo it as far as applying for too many credit cards.

What to do?

Let's assume you have three credit cards right now. You don't want to apply for more. If you're keeping up with your payments the credit card company will probably occasionally send you checks you can use to pay off a balance elsewhere or buy something with no interest for up to a year.

Generally there are also additional checks giving you longer to repay with maybe a 1% interest rate. First, be aware you will pay a percentage of the amount you write and it will go onto your loan. Read carefully.

Now, be careful here. I'll tell you what I do. I try to keep my cards paid each month so there's no interest occurred. But my daughter, who is married, can't get credit and I let her use one of the cards and she makes payments. I don't recommend you do this but I do it anyway.

So let's say the card has a balance of $3000 and monthly payments are $70. She makes the payments but the interest is up there. One of my other cards sends me a no interest check. I pay her loan off with that check and for the next nine months or so she pays no interest. It usually cost me about $90 to do this, added to the loan.

The card I paid off I now use and pay off monthly and she pays on the other. It saves money and gets her loan down quicker. But you need to be careful here. I've done it for years and have a top credit rating. I say I don't recommend you allow your kids to do this because guess who pays when they don't?

But she's a single mom and I love my grandson so what are you going to do.

It works if you're careful but if you miss a payment, it all went for naught as the interest jumps to a higher amount. Use this method with lots of care.