What Happens At The End Of The 0% Interest Purchases Period?

0% purchase credit cards offer the opportunity to make purchases at 0% for a certain amount of time before the regular rate of interest kicks in. It is important to understand that this is what happens, and not think that this offer is ongoing.

The usual term for this introductory period is six months, and it may run concurrently with a 0% balance transfer offer. As with all introductory offers, they come to an end.

There are a few important issues to grasp. Firstly, you need to know what the regular rate of interest (APR) is once the offer period expires. This is the rate of interest that will affect any balance remaining on the credit card, and any future purchases made on it. This could be higher than average to compensate the credit card provider for the generous offer they are making. Some people may be mistaken in thinking that the purchases they make within the offer period remain at 0% in perpetuity, and only subsequent purchases are hit by the higher regular rate. This could be an expensive misconception.

The golden rule:

Your aim must be to pay off your debt within the offer period so that you can start a new slate when the regular rate takes over. After that, you should obviously always try to clear your balance every month, because this is the key to having a successful relationship with your credit card. A 0% rate on purchases should never be seen as an invitation to go a little loopy on the high street or on the internet. A lot of damage can be done in six months, and it can take many more months, if not years, to undo that damage. If you are building up a debt on your 0% purchases card because you are only paying the minimum amount each month, you must be setting aside enough funds to clear that debt before the offer comes to an end. Remember that paying just the minimum amount of the balance is never a good habit to get into. The only reason this may have to be the case is if you’ve got your card with the purpose of making a large and necessary purchase which you know you will not have the full funds to cover straight away.

Stoozing:

Used cleverly, it is possible to even make a little money with this type of 0% card, through something called “stoozing“. This is the practice of making purchases on the 0% purchases credit card and putting the cash you would have spent into a high interest account, therefore earning yourself interest instead of paying it out. This requires discipline to achieve, and you must make certain that you keep a running total of your purchases and set aside the equivalent amount to be able to clear the debt when the time is due.

Related posts:

1. Interest-Free Period Credit Cards
2. What Happens After Your Balance Transfer Honeymoon Period Is Over?
3. What Is Credit Card Stoozing, And How Can I Make Money Stoozing?
4. Are All Purchases Included In The 0% Purchase Rate?
5. Are There Any Hidden Charges With 0% Purchases Credit Cards?
6. Low Interest Rate Credit Cards in Australia
7. Why Are Only Some 0% Balance Credit Cards Suitable For Making New Purchases?

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
St George Vertigo	Editor's Choice: Low Interest Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers	16.99%	16.99%	1.99% for 9 months	$0	55