0% Interest credit line

Most of the time you hear about banks giving out 0% interest on credit line. It sounds too good to be true right? In fact there is a fine print on top of this 0% that says you need to pay a one time administrative charge of at least 2.5% depending on which banks. Do you really think it is worth paying this 2.5%?

Consider a situation that you might face. Assuming just a few days before you get your salary, you need to settle an important transaction that requires cash. No credit card is allowed for that transaction and you are already broke or out of cash. So you decide to withdraw cash from credit line and when your salary comes, you put aside the same amount of money to pay for your loan. Now you end up being charged for a one time administrative fee for just a few days of loan.

There is a way in which you can have a REAL 0% interest on credit line. The concept is actually a rip off from the articles I wrote previously. I suggest you read this first then this. If you have transferred your credit limit balance to poems cash management account, that amount can be used as additional emergency funds. At times of emergency, just transfer the funds from poems to your bank. And you are ready to use the cash like in a situation above.

Notice that I used the word additional in the paragraph above, as most of the time all prudent individuals would have kept sufficient emergency funds so they don't end up out of cash. However additional emergency funds from credit limit balance is an added incentive for everyone. When your credit card statement arrives, all you need to do is pay back promptly. Therefore no interest will be charged!