A zero balance card is a credit card that does not carry a balance from month to month. Also referred to as “pay in full” cards, these cards enable customers to maintain a low-balance or zero-balance credit card with low or no interest fees.

Zero balance cards are an attractive option among credit cardholders because they allow the user to maintain their credit score without carrying the burden of interest fees and hefty permanent debts. Such cards are advantageous because users will have the purchasing power of a credit card without the hefty charges associated with maintained debt.

By maintaining a zero balance, customers will pay off all of their purchases at the end of each month and start again with a clean slate- and a zero balance. Such high payment regimen can give customers the feeling of complete freedom that comes with no existing balances.

In addition, customers can improve their credit scores by maintaining a zero balance credit card. Low or limited utilization affects your credit utilization rate and a lower utilization rate reflects positively on your credit score. This advantage is particularly beneficial to younger consumers looking to build their credit scores.

Finally, customers can enjoy the benefits of receiving rewards and other incentive programs offered by the credit card companies. Many issuer’s offer cards with low or zero annual fees and no introductory APRs or balance transfers. Such incentives make a zero balance card a financially viable option.

In conclusion, a zero balance card is an attractive option for those seeking to exercise financial control and improve their credit scores. By paying off all purchases in a timely manner and refraining from using the credit card for purchases, customers can reap the rewards of owning a zero balance card without the worry of interest payments or debt. As such, zero balance cards remain an attractive option among both younger and older users alike.