Uses for a No Interest Credit Card

As the global economic crisis worsens, people all over the country continue to worry about how they're going to keep their jobs and pay their bills. Unfortunately, there isn't a pat answer here, since everyone's situation is a bit different. But even if you're lucky enough to still be employed, you should take steps to guard against financial catastrophe in the future. One of the smartest things you can do is apply for a no interest credit card (or two) to keep on hand if worse comes to worst.

There are many sound reasons to get a no interest credit card. First, you can transfer balances from other cards you may have, thereby wiping out the incredibly high APR that banks and other issuers charge. This obviously can save you a great deal of money -- as long as you pay off the new balance by the deadline, which is usually 12-24 months away. At a time when cash is tight for all of us, every extra dollar counts, so using a no interest credit card to transfer balances is typically a good move.

Another smart way to use a no interest credit card is to buy big-ticket items that you otherwise wouldn't be able to afford. I'm not talking about that 52-inch plasma television you've had your eye on or a new sound system for your car. I mean expensive items that are actually a necessity. For instance, if your washing machine breaks down and you don't happen to have an extra $600 in your checking account, a no interest credit card can come in very handy, allowing you to make minimal payments for whatever you need without any extra penalties or fees.

And finally, a no interest credit card can be used as a source of emergency funding should you ever lose your job. Ideally, you should have the equivalent of six months salary in your savings account, but how many of us can actually say we've got that? If you do get fired or laid off, it could take a long time to get a comparable position in today's economy. Once you run through your savings, you can turn to a no interest credit card for living expenses, such as groceries, utilities, and even mortgage or car loan payments. You can rack up a huge bill very quickly by doing this, but it's better than starving, being evicted, or having your vehicle repossessed.

Even if your life seems pretty stable right now, just remember that everything can change overnight. It's better to be prepared for the worst than to be caught short because you didn't think anything bad could happen to you. I recommend applying for a no interest credit card just in case. If you never have to use it, that's terrific. But at least you'll have the peace of mind that comes with knowing you have a back-up funding source at your disposal. Don't wait any longer!

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