An interest free credit card is like money in the bank. While you charge living expenses and luxuries on an interest free card, you can leave your personal money in the bank to draw interest. To utilize this offer, you simply make sure you pay the balance in full before the interest free period expires.
Normally, credit card companies issue interest free credit cards for promotional purposes and remains interest free for a certain amount of time. Once that predetermined date has passed, interest becomes chargeable on any outstanding balance. There is no benefit to using a card in this manner if you do not do it correctly. It will cost you more than paying cash if not done properly.
There are other savings to this type of transaction as well. There is only one check or bank withdrawal, instead of several. If paying by check, only one postage stamp is required. Most interest free credit cards offer rewards for every dollar spent. Throughout the interest free period, you are using their money for nothing and actually making money in reward points. Whether credit card companies offer cash, gift cards, or some other form of rewards, it still adds up to a bonus. You get something free you would have paid for otherwise.
Some people use an interest free credit card for large purchases that may be difficult to pay for at one time. This allows you to pay the balance on a monthly basis without interest or penalties. Many people will transfer a balance on an interest charging account to an interest free card. As long as you pay the balance in full before the stated deadline, and the transfer fee is less than you would have paid in interest, the interest free credit card is financially a better option.