How to Use Zero Percent Credit Cards to Your Advantage
Zero percent credit cards can be a lifesaver for people who find themselves in the evil clutches of their credit card. Credit card debt is a direct result of mismanagement. If you don’t know how to manage your card well, chances are you end up in the same pit. This is when zero percent credit cards can be the right tool to allow you to see the light at the end of a dark, long tunnel. Learn how.
Example of how a zero percent credit card can be mismanaged:
The dangers of zero percent credit cards are its very features. Because of the 0% p.a. balance transfer rate that is offered to consumers many believe that they can go onto the merry-go-round of swapping one zero percent credit card with another one as soon as the introductory period runs out (six months plus).
Believing this is the fastest way into credit card hell because of the terms and conditions of these credit cards. Don’t get me wrong, it is very much possible to strike a deal of using one zero percent credit card for as long as possible and then swapping this one for a new deal. But before you consider doing this consider the costs involved.
You could be up for a large transfer fee, penalties and other charges and unless you are 100% confident the swap will not sting you financially, then don’t even go down that road.
Mind the other trap: your credit file!
If you are in the habit of applying for too many zero percent credit cards (or any other loan for that fact,) you’ll unknowingly damage your credit file.
Veda Advantage keeps track of all of your past applications for money (failed and successful) and those files will be kept for five years. If you declare bankruptcy the record will be in your file for seven years.
Zero percent credit cards are great if handled the right way:
There is no doubt that zero percent credit cards are a fantastic tool to become debt-free. But you need to pay off your debt within the zero percent time frame given to you by the lender if you want to take total advantage of this type of card.
One of the hottest and upcoming 0% credit cards is the Citibank Clear Platinum, which is vouched to soon offer a 0% balance transfer AND purchases offer!
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Compare Australia's Best Zero Credit Card Offers
St.George Vertigo MasterCard
The St.George Vertigo MasterCard is the ideal low rate shopping card. Save with an amazing introductory offer on both purchases and balance transfers for the first 6 months. Also enjoy instant discounts and added extras with the St.George Instant Benefits Program
- $55 annual fee
- 12.49% p.a. on purchases
- 2.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.24%
- Comes with free secure online shopping service
Click here to read the St George Vertigo terms and conditions
Compared below are a handful of the best credit cards with a 0% balance transfer offer or a $0 annual fee. Enjoy the best rates and fees on your credit cards - zero!
| Credit Card | Card Details | Interest Rate (p.a.) | Cash Advance Rate fee (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Interest free days (up to) | |
|---|---|---|---|---|---|---|---|
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Best Zero Percent Credit Card ANZ offer one of the lowest rates on the market at 13.24% p.a, along with ANZ Falcon security and a 0% p.a.balance transfer offer. |
13.24% | 21.49% | 0% p.a. for 6 months | $58 | 55 |
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Take advantage of a card with the prestige and status of Platinum but with a low interest rate of 11.49% p.a. Enjoy Citibank World Privileges, offering entertainment & retail discounts worldwide. |
11.49% | 21.24% | 0% p.a. for 6 months | $49 first year (Save $50) | 55 |
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Featuring 1.9% p.a. for 12 months on balance transfers a low ongoing 12.24% on purchases and a $39 annual fee. |
12.24% | 17.99% | 1.9% p.a. for 12 months | $39 | 55 | 
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No annual fee ever. Up to three complimentary cardholders for free. 5.99% p.a. for 12 months on balance transfers Click here to see this card at BankWest.com.au |
16.99% | 16.99% | 5.99% p.a. for 12 months | $0 | 55 |
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Best Zero Annual Fee Card Enjoy a generous rewards program and up to 44 days interest free on purchases at no annual fee, ever. You have the flexibility to opt in for a $80 annual fee if you wish to double your reward points. |
20.49% | 20% | - | $0 | 44 |
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The Vertigo MasterCard is one of Australia's most competitive low rate cards. Comes with St George Instant Benefits which offers discounts on selected retail and entertainment. |
12.49% | 21.24% | 2.99% p.a. for 6 months | $55 | 55 |
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