The best 0% purchase credit cards
If you want to pay for a big purchase and spread the cost over a period of time, a 0% purchase credit card can be a good option – providing you keep on top of your repayments. These cards give you an interest-free period to pay off your debt.
Current longest 0% purchase credit cards
Here are the longest 0% periods on offer today for purchases:
Card | 0% period |
Halifax Purchase Credit Card | 17 months |
16 months | |
15 months | |
15 months | |
15 months | |
15 months | |
14 months | |
13 months | |
13 months | |
Halifax All in One MasterCard | 12 months |
12 months |
*Only available to Nationwide current account holders
These cards all offer a year or more before you face interest charges.
The pros of a 0% purchase card
As we've already said, the beauty of a 0% purchases credit card is, so long as you pay it off within the interest-free period, every penny goes to paying off your debt.
Let’s take an example. Say you spend £5,000 on the Tesco Clubcard card. If you pay £312.50 a month, that debt will be completely cleared by the time the 0% period finishes.
If you instead spend £5,000 on a normal credit card, with an APR of 19%, then it will take you an extra three months to clear that debt. And you will pay more than £700 in interest!
So if you know you've got a big purchase ahead of you, going for a 0% credit card is a sensible course of action.
The downsides of a 0% purchase card
There are some hurdles to consider though. As I mentioned in the example above, pay £312.50 a month and the debt will be cleared by the time the 0% period ends. But what if you don’t manage to do that? What if the 0% period finishes and you still have thousands of pounds sat on the card?
You face a couple of options. The first is to do nothing – leave your debt where it is, continue making your monthly payments, and your debt will eventually disappear. That said, you will end up spending a decent chunk of cash on interest.
Or you can move the remaining debt to a balance transfer card, which will also offer a period of 0% interest on your repayments. But you’ll have to pay a fee for the privilege.
And then there’s the fact that in order to get your hands on a 0% card you’ll need to have a good credit record. Credit card providers don’t make a habit of handing out these cards to any old borrower – ironically the borrowers who would most benefit from a bit of breathing space in paying off their debts are the ones who find it most difficult to get their hands on 0% cards.
Alternatively, you may find that your credit rating is good enough to get a 0% on purchases card, but not good enough to get the very best 0% card. Halifax is now offering 'tiered 0% deals' where some applicants get 0% cards but with shorter interest-free periods.
Therefore the best way to get a 0% card is to ensure your credit rating is as spotless as possible.