You've received zero percent credit card offers in the mail. For a while it seemed like I was receiving them daily. But for most of us the skepticism arises when we see such a push for something that is claiming to benefit us. You may wonder what the real cost may be for these offers, or what are the credit card companies gaining from this. Obviously they wouldn't have such offers if they weren't able to gain from them.

For the credit card companies there are a few benefits of offering zero percent interest credit cards. For starters they are a good way to attract customers or to get customers to transfer a balance from a high interest credit card, likely from another company, to the their zero percent interest credit card. But they also know they will still make money on these types of credit cards.

Based on consumer habits they know the cardholder will probably not pay off their balance during the interest free period so they will start receiving interest income once the introductory period has ended. Plus they know they will still collect a certain percentage of balance transfer fees, late payment fees and over the limit fees. Typically if there is a late payment the zero percent interest is no longer valid so they can start collecting interest from that point going forward.

So what's in it for you with zero percent credit cards? Well, as long as you know the rules and follow the rules you can take advantage of the zero percent credit card offer to pay down or completely pay off some debt.

Before you transfer a balance make sure the balance transfer fee isn't higher than the amount of interest you would pay during the interest free period. Only transfer what you know you will pay off during this interest free period and be sure you actually pay the full balance before the offer expires, so you're not stuck with a high interest rate later.

Never make a late payment on this card because you will probably lose the zero percent interest rate if you do. Also don't make any new purchases on this account. Only use it to hold the portion of the debt you're paying off.

You can use these zero percent credit card offers to your advantage. Just be disciplined about how you use the credit card account. Know the basic rules of the offer and follow them. You'll be glad you did in the end. It may even help you create better habits for the future.