Whether you are immigrating to the U.S., studying abroad, or traveling, you will need to prepare for life in the United States in a variety of ways. Among them, credit cards are indispensable as a means of local payment. In particular, interest-free credit cards, which do not accrue interest, can make your daily life more comfortable and affordable if you use them wisely.
Credit card situation.
Credit cards are widely used in society, and most payments in daily life are made with credit cards. Unlike debit cards, the amount used is charged together in the following month, which has the advantage of temporarily reducing large expenses.
Credit card usage history is also very important because it affects your credit score. Maintaining a good credit score provides various benefits, such as preferential interest rates on mortgages, car loans, etc.
What is an interest-free credit card?
Interest-free credit cards are credit cards that do not charge interest on the amount spent for a certain period of time. In most cases, the credit card is interest free for a period of X months from the date of issuance.
If you repay the entire amount used during the interest-free period, you do not have to pay interest. In other words, you have the great advantage of being able to raise funds without paying any fees.
Types of interest-free credit cards
There are a variety of interest-free credit cards on the market. The main types are as follows.
Interest-free credit cards for students
Interest-free credit cards for students generally require less credit history and are relatively easy for students to obtain.
Interest-free credit cards for travel
Interest-free credit cards for travel feature a full range of supplementary services, including overseas travel and shopping insurance.
Cash Back Interest Free Credit Card
The Cash Back Interest Free Credit Card is a great credit card that rewards you with points based on the amount you spend.
Point-Redemption Interest-Free Credit Cards
Point-Redemption Interest-Free Credit Cards are cards that allow you to earn points based on the amount you spend and redeem those points for a variety of rewards.
How to Choose an Interest-Free Credit Card.
The following points should be considered when choosing an interest-free credit card.
Interest-free periods
Interest-free periods vary from card to card and generally range from 3 to 21 months. The longer you choose a card with a longer interest-free period, the less likely you are to pay interest.
Interest Rates
Interest rates after the interest-free period vary from card to card. Selecting a card with a lower interest rate will reduce your interest expense.
Annual Fee
Some interest-free credit cards charge an annual fee. Choosing a card with no annual fee can help keep costs down.
Incidental Services
By choosing a card with a full range of incidental services, such as overseas travel and shopping insurance, you can save money by eliminating the need to purchase separate insurance.
Reward Points
Choose a card that offers cash back or reward points for every dollar you spend.
How to use interest-free credit cards based on the latest financial information from the U.S.
As of December 2023, interest rates in the U.S. are on the rise. Therefore, the use of interest-free credit cards can be more effective in reducing interest expenses.
Below are some specific ways to take advantage of interest-free credit cards wisely.
Use for large purchases
Interest-free credit cards can be used to finance large purchases, such as furniture and appliances, without paying interest.
Use Bonus Payments
Using an interest-free credit card that accepts bonus payments can reduce one-time expenses.
Pay off your monthly payment in full
If you pay off the full amount of your loan during the interest-free period, you do not have to pay interest.
Take advantage of points
Take advantage of rewards such as cash back and point redemption to enjoy more savings in your daily life.
summary
Interest-free credit cards make American life easier and more affordable when used wisely.
