Credit Card Promo-Rates Explained: 6 Do’s and Don’ts!

Estimated Monthly Savings: $20

Some tips for Using PromotionalInterestRate Credit Cards

The 0% APR (Annual Percentage Rate) credit card offer can be a surprisingly powerful tool, one that amounts to a free loan lasting potentially months at a time. Combined with the advantages of a Cash-Back credit card, this can save you a ton of money in the form of eliminated interest fees and savings on everyday purchases.

What is a ‘Promotional Interest Rate‘?

Promotional interest rates are offered by companies as an inducement for new customers. The idea is that you’ll get used to the card and won’t mind paying the interest later. However, clever card users won’t have to pay any interest at all as long as you remember that these deals tend to have stringent requirements to maintain the promotional rate. Get the most out of these great promotional deals by following a few simple Dos and Don’ts.


  • Try to get a card through your personal bank. This keeps your financial accounts unified and makes it easy to make payments on the card while handling your regular finances.
  • Pay small but interest-building debts (like overdue library charges) with the promotional card. This gives you a little extra time to pay without building up more interest fees.
  • Carefully follow all the conditional rules for the promotion. Certain actions with the card will automatically cancel the promotional interest rate and could trigger interest fees on the entire card balance.


  • Go over the card or promotional limit. This is a fast way to get your card canceled or interest immediately charged.
  • Get a cash advance. Credit card companies are not fond of cash advances, and often exclude them from the permitted uses of promotional cards.
  • Forget when the deal ends. All the convenience of an interest-free card disappears at the end of the promotion. Mark it on your calendar and try to pay off the card completely before this date.

If you could make use of an interest free loan, consider the clever use of a Promotional Interest Rate credit card. Give your finances and credit score a boost by following a few simple rules and intelligently managing your money.