With zero percent card that has signup bonus, you earn a lot of rewards points at one time or a cash back bonus when you meet the minimum spending limit. Usually, there is a time limit for you to earn the signup bonus, for example, it may require you to spend at least $500 to earn a $150 cash bonus within a period of 3 months. Since you are going to make a large purchase, this type of rewards program will come in handy for you earn some cash back while spending money on something that you already plan on buying.
Besides the signup bonus, you also earn some rewards points when you spend money on the card. The rewards points may be earned when you spend money on selected purchase categories like rotating categories. Many cards do not have rotating categories to keep track and they let you earn a flat rate rewards point on all purchases.
The benefit of the zero percent credit card is that it waives the APR interest fees for several months. Normally, in a regular credit card, all the charges you swipe on the card will get APR interest fees if you let the balance roll over. In a zero percent credit card, no APR fees will be added onto the balance each month when you let the balance roll over to the next month.
You can take your time to pay off as long as you finish paying it off by the end of the zero percent intro period. The APR interest charge will be applied if you did not fully pay off the balance after the end of the intro period. You can sign up for a credit card with zero percent intro APR for 6 – 21 months. Rewards credit card with good signup bonus and long zero percent intro period will take a good credit score to sign up.
The zero percent intro incentive can help you to save a lot of money on the interest fees which you would have to pay if you make the purchase on a regular credit card that does not have any zero percent intro offer. This allows you to pay off a large purchase on your credit card fast instead of having to delay to many years to pay it off if you were to use a regular credit card.
When you are signing up for a rewards credit card, you must take into consideration of other costs such as the annual fee. It is best to find a card that does not charge an annual fee. If the card does have an annual fee, make sure the cost is covered by the rewards that you can redeem through the rewards program.