Interest-free credit cards, aka 0% credit cards, give you a period of time when no interest is charged on a particular part of your account balance.
The length of the 0% interest period varies depending on the card, ranging anywhere from 12 to 36 months. It can also be dependent on the applicant’s circumstances, with some card issuers tailoring 0% deals to the perceived risk profile of the borrower.
The 0% rate can also apply to different parts of your balance, depending on the type of card.
A 0% interest-free credit card is great for reducing the cost of existing debt or for spreading the cost of large one-time purchases like furniture, a holiday, wedding expenses or emergency repairs. You can get the maximum benefit from your card if you use it once for a big purchase (or transfer of debt), then spend the remainder of the promotional period paying off the balance.
Use this guide to compare interest-free credit cards in the UK, including different offers currently on the market. You can also find out about other features to consider so that you can find an interest-free credit card that suits your needs.
There is a wide range of credit cards that offer interest-free promotions for a specific time period. Here, you can find information on a range of different 0% interest credit card options based on how you plan to use your card.
This type of credit card allows you to make new purchases without paying interest during the introductory period, which is usually the first 12 to 28 months from when you get the new card. At the end of the introductory period, a higher standard variable purchase rate will apply to any remaining balance.
A 0% balance transfer card offers an interest-free period on existing credit card debt that you move onto the new card. The 0% interest rate can last anywhere from 12 to 24 months or more depending on the offer. This gives you the opportunity to repay your debt without collecting any additional interest, which can help you put more money towards paying off the balance faster.
0% balance transfer credit cards
This type of credit card offers an introductory 0% interest rate for both balance transfers and purchases. However, the promotional interest-free periods may be different lengths for balance transfers and purchases. For example, a card could offer 0% interest on balance transfers for up to 15 months but only 0% interest on purchases for the first 3 months.
When the introductory period ends, any remaining debt from purchases or balance transfers will attract interest at the standard variable rate for that card. This rate could also be different for purchases and balance transfers.
“Balanced” 0% on purchases and balance transfer credit card
This type of credit card allows you to transfer money from your credit card to your bank account, which could help you pay off an overdraft or personal loan. Many of these cards offer a 0% period for anything from 19 to 30 months, giving you a long break from the interest bill.
Money transfer credit cards don’t always have long 0% offers on purchases so you could accrue high interest if you use the card to pay for purchases.
Most credit cards offer a certain number of interest-free days for each statement period. For instance, you may see “up to 55 days interest-free” included as a feature on your credit card.
This 0% interest period is usually only available if you pay your balance off completely by the due date on each of your statements. If you carry a balance or make a late payment, you won’t be eligible for interest-free days and interest will be applied for all purchases made during that statement period. Usually, you will only be able to access interest-free days again after you have paid your balance in full for one or two consecutive statement cycles.
If you want to get a credit card with an interest-free period, considering the following features and details can help you find one that’s right for you:
Interest-free credit cards can be a convenient and affordable way to access additional funds in a wide range of situations. But it’s important to compare your options to find the right type of card for your needs.
There’s a question over the future of 0% credit cards due to new rules designed to protect consumers, according to a campaigner.