Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
Compare the best 0% purchase credit cards of 2020
Enjoy the freedom of buying now and paying later with a credit card that offers you 0% interest on purchases.
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A credit card with a 0% purchase rate can help you save on your shopping by charging zero interest on the balance during the promotional period. While the length of the 0% introductory offer varies, you’ll usually be able to get between 3 to 28 months interest-free depending on the credit card you choose.
0% purchase credit cards comparison
Table: sorted by length of 0% purchases offer, promoted deals first
Updated January 22nd, 2020
More about 0% purchase credit cards
A credit card with 0% on purchases allows you to make purchases and pay zero interest on them during a promotional, introductory period. When this period ends, the standard purchase rate will be charged for any remaining balance on your card. If you have some big-ticket purchases to make, a 0% purchase credit card can temporarily keep your interest costs low, which could help you pay off the balance faster.
Use this guide to learn about the benefits of 0% purchase credit cards, how they work and how you can compare the different interest-free offers on the market. We also answer the most common questions about 0% purchase credit card deals to help you get the most out of your next credit card.
How is a 0% purchase credit card different to a regular credit card?
While a standard credit card typically has an interest rate between 12% and 22% p.a. for purchases, credit cards offering interest-free purchases provide zero interest on all eligible purchases made during the promotional period.
How can I find the best 0% purchase credit card?
There is no one best 0% interest credit card on the market, because each offer is designed to suit different spending habits and budgets. But you can find a 0% purchase credit card offer that works for you by comparing the following features:
- Length of the 0% purchase promotional period. As the 0% purchase period can range from three to as many as 30 months, it’s important to ensure that the promotional period is sufficient for you. Consider how much you’re going to spend, divide it by the number of months in the promotional period and calculate whether you can repay that much each month to clear the balance before the standard interest rate applies. If not, you might want to apply for a card with a longer promotional period or be prepared to collect some interest when the offer ends.
- Annual fee. Some 0% purchase credit cards charge an annual fee. To determine whether or not the card is worth the cost, consider how much you’ll save with the 0% interest offer and any other perks to see whether the benefits outweigh the cost.
- Standard purchase interest rate. If you’re unable to pay your balance in full by the end of the introductory period, your purchases will begin attracting the standard purchase rate. Depending on the card, this will typically be between 12% and 22%, but can be significantly higher. If you don’t think you can repay the entire balance before the promotion ends, look for a card with a lower ongoing purchase rate. Otherwise, you could enjoy another interest-free period by transferring your debt to a card with a 0% balance transfer offer.
- Extra benefits. Does the card come with complimentary travel insurance? Do you want to earn rewards points on your purchases? Will your purchases be covered by purchase protection and an extended warranty? Can you access a 24/7 concierge service? If you will be using the card for more than just the 0% offer, comparing these features can help set the cards apart.
What is APR?
Credit card promotions have to include an Annual Percentage Rate (APR), which all card issuers must calculate in the same way.Credit card fee structures can get fiddly, so the APR’s designed to benchmark the yearly cost to borrow, with a view to helping consumers compare cards against each other. It takes into consideration the default interest rate plus any mandatory, regular account fees.
There’s a big catch though: the Financial Conduct Authority (FCA) states that this rate must be what 51% (or more) of people accepted for a card receive. That means that up to 49% of those accepted for a credit card may end up paying a higher rate. This is why it’s often called “Typical” or “Representative” APR.
When it comes to 0% purchase credit cards, keep in mind that APR is only relevant once the introductory 0% period expires. Before that, you won’t be charged any interest at all, so it’ll be more useful to look at how long the 0% period is or to the other perks that come with the card.
Types of 0% purchase credit cards and extra features
While each of these cards offers 0% on purchases, there are several types of interest free purchase credit cards. You can compare the additional benefits and features to determine which type of 0% purchase credit card is right for you.
| 0% purchase offer type | Benefits |
|---|---|
| Standard 0% purchase offer | Includes the 0% promotional purchase rate for a specified promotional period, which will revert back to the standard purchase rate once the offer has ended. Extra benefits such as interest-free days, travel benefits and complimentary insurances may also be available. |
| 0% purchases with frequent flyer benefits | Earn frequent flyer points for every dollar spent on your card for the life of the card and also take advantage of an interest-free purchase promotional period. |
| 0% purchases with balance transfer offers | This type of card allows you to transfer and repay your existing credit card debt interest-free whilst also making purchases with zero interest. |
| 0% purchases with rewards benefits | Pay no interest on your purchases and earn rewards points for every dollar you spend. Unlike a frequent flyer card, these are connected to your credit card’s rewards program and can be redeemed for flights, merchandise and cash back. |
What's the difference between interest-free days and 0% interest credit card offers?
Most credit cards offer you up to a certain number of interest-free days each statement period, for example, up to 55 days. To take advantage of interest-free days, you usually need to pay off your full balance by the due date on each statement. As long as you meet these conditions, you can enjoy interest-free days on your card.In comparison, credit cards that offer a promotional 0% interest on purchases give you a temporary period when you can make purchases without paying any interest. You only have to make minimum payments during the promotional period. But a standard interest rate will apply to any balance remaining at the end of that period.
4 common mistakes to avoid
Want to get the most out of a 0% interest period? Here are four things to avoid:
- Ignoring the “revert rate”. At the end of the promotional period, the 0% interest rate will revert to the standard purchase rate (which usually sits between 12% and 22%, but be higher). Consider the standard interest rate before applying for the card so you understand how your debt will grow if you fail to repay your balance before the promotional period ends.
- Only making the minimum repayment. You’ll be required to make minimum repayments, usually 2% or 3% of the total balance, each statement period. However, if you only match the minimum amount each month, you’ll be unable to repay your entire balance before the 0% offer finishes. If you make more than the minimum repayment, you’ll have a much better chance of repaying your balance before the standard rate applies and you start paying a higher interest rate. If you’re unable to repay your balance before the 0% purchase offer ends, a balance transfer might be the next step.
- Ineligible transactions. The 0% offer only applies to eligible purchases. If you use your card for balance transfers, cash advances or other cash-equivalent transactions, they’ll usually be charged at the standard rate unless a separate promotional offer applies.
- Not taking advantage of the entire offer period. The 0% offer is available as soon as your card is approved, not from when you make your first purchase. So if your card offers a 0% offer for six months but you don’t make a purchase or any repayments for the first month, you’ll only have five more months to make repayments without incurring interest. If you have a big purchase in mind, make it as soon as possible and start making repayments immediately to get maximum value out of the offer length.
The introductory 0% interest periods offered in these cards can be a great way to save money on planned purchases and big-ticket items that you need to buy. When you’re comparing these cards, pay attention to how long the promotional period lasts, what interest rate applies at the end of the promotional period and other features and fees so that you can find one that suits your needs.
Frequently asked questions from our users
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
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Ask an Expert
hi, when the 0% interest on purchases ends, how long will it take to pay off at 19.95%?
Hi Mel, thanks for getting in touch.
It depends on how much you pay off each month. Let’s say you had £2,400 outstanding, and it was accruing interest at 19.95% annually. If you paid £200 each month, you’d need around 14 months to clear the debt. If you paid £100, it would take around 31 months.
A balance transfer at that point could help clear the debt faster (and more cheaply). With a long enough 0% interest deal, paying £200 each month would clear the debt in around 12 months (or potentially 13 months, if there’s a transfer fee and it’s lumped in with the balance), and paying £100 each month would clear the debt in around 24 months.
I hope this helps you, Mel. We’ll soon be adding more calculators, guides and videos to help with exactly this sort of question.
Kind regards,
Chris