Wednesday, December 26, 2007

Discover Card With A 0% Interest Rate

One unsuspecting day in the mail, I received an offer from Discover Card for a 0% interest credit card.  I was given a few months to transfer balances to get into the 0% until paid status.  Remember, nothing in life is free.  Therefore my first question was, “What is the catch?”  With a bit of research, I discovered that the requirement was making timely payments and at least two purchases a month to maintain the 0% interest rate for the life of the balance.  With only a 3%  maximum transfer fee, you basically get a free loan.  By the way, the purchases have no minimum dollar requirement.  I make two monthly purchases of $.10 each.  That’s right!  My two purchases cost me a combined $.20.


This is a golden opportunity for someone with the discipline not to overspend and remember the two purchase commitment.  If you don’t see the gold in this egg, compare the interest rate of credit cards you now possess or small personal loans to the 0%.  Finance charges can easily be $50 a month if you owe $5,000.  With $50 in finance charges, your monthly payment is approximately $100.  By adding a 0% interest credit card to your arsenal for payoff purposes only, you instantly cut your monthly budget by $50 or  increase your investing options by the same.  This 0% interest card actually allows you to make the minimum payment if necessary and still reduce the balance owed.  It also creates money for you to invest toward retirement without increasing your income.  Eliminating high-interest rate debt is an aspect of investing.


For anyone able to qualify and is in the process of paying off or paying down debt, this is a must have.  This could also be used as a funding source for your business.  How many banks offer business loans at 0% interest?  


This particular offer came from Discover Card and I don’t use it for anything else.  Be sure the offer is 0% interest for the life of the balance so long as you make the two $.10 purchases a month and pay on time.  They don’t mind the $.10 purchases because for every 10 savvy card holders, there are probably 50 frivolous spenders exceeding the credit limit and making them money.


Be sure the offer is 0% interest for the life of the balance so long as you make the two $.10 purchases a month and pay on time.  You may want to call a representative and verify the offer is still available and request it specifically.

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