There are many varieties of credit cards in the market today. They are usually differentiated on the purpose of their use, such as travel and shopping credit cards, student credit cards, business credit cards, prepaid cards, health rewards credit cards, airline rewards credit cards etc. Apart from this, cards are also categorized on the basis of eligibility of an individual such as silver, gold, platinum or titanium cards. To add to this list, yet another segment of credit cards called zero interest credit cards are also doing rounds in the market.

Zero interest credit cards or interest free credit cards are those ones which offer a limited interest free time period for repayment of the amount to the customer. In other words, these credit cards help customers to avoid paying interest on credit, if they repay the debt within a specified period of time.

It means that a person can borrow money and make purchases up to his/her credit limit, without having to pay any interest on the amount by returning the debt within a limited time period.

Usually, this category of credit cards is promoted by banks as an introductory offer, to attract new customers. In this way, we can call most credit cards, interest free credit cards as most of them offer at least 20 to 50 days of interest free period. The interest free period is calculated from the date of purchase plus 20 or 50 days, as permitted by the respective bank. After the expiry of the interest free time period, interest at stipulated rate is charged.