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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
0% purchase credit cards
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.
When will I be charged interest on a 0% purchase credit card?
If you still carry a balance at the end of the introductory period. The 0% offer only applies for an introductory period and will revert to the standard interest rate when the offer ends. For example, if the card comes with 0% for 18 months, the interest-free period will end 18 months after your card was activated and any remaining balance will begin to collect interest.
If you use your card for a transaction that isn’t considered a “purchase”.While most everyday spending will be eligible for the interest-free offer, transactions such as cash advances or cash equivalent transactions will be charged interest at the cash advance rate from the time they are made.
If you don’t make minimum monthly payments. Even with 0% interest on your purchases, you’ll have to pay at least the minimum amount required by the due date on each credit card statement.
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.
When will I be charged interest on a 0% balance transfer credit card?
If you make new purchases. When you make a purchase on this type of card, the interest rate for purchases will apply from the time the transaction is made.
If you use your card for a cash advance or cash equivalent transaction. With these transactions, interest charges and fees will apply from the time they are made.
If you don’t make minimum monthly payments. Your credit card statement will stipulate the minimum you are expected to pay every month.
If you don’t pay off your balance transfer debt by the end of the introductory period. If the balance transfer interest-free period ends and you have an outstanding balance to pay, you’ll start collecting interest on it.
“Balanced” or “matched” 0% purchase and 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.
When will I be charged interest on a “balanced” or “matched” 0% purchase and balance transfer credit card?
If you make a money transfer. Most “balanced” or “matched” cards do not offer 0% on money transfers so the interest rate will be charged whenever you transfer money from your credit card to a bank account.
If you make a cash advance on your card. This type of transaction is likely to attract interest immediately, without the interest-free days that usually apply to purchases.
If you don’t pay off your debt by the end of the 0% introductory period. Anything remaining on your balance will be charged interest at the standard revert rate.
If you don’t make minimum monthly payments. Although you may have 0% on your debt, you must still pay the minimum amount on your statement every month.
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.
When will I be charged interest on a 0% money transfer credit card?
If you make new purchases. Any new purchases made on a money transfer card will be charged the standard interest rate at the time of the transaction.
If you make a balance transfer. If you transfer any balances from an existing credit card, you accrue interest from the date the debt is transferred.
If you don’t pay the minimum monthly payment. You could risk losing the 0% offer if you fail to make the minimum monthly payments required on your statement.
If you make a cash advance on your credit card. While money transfers allow you to move money off the card into a bank account, actually withdrawing cash from a machine will be charged interest immediately from the date of withdrawal.
If you don’t clear your balance by the end of the introductory period. Following the end of the 0% bonus period, you will be charged the standard rate of interest.
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.
How to compare interest-free credit card offers in the UK
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:
Introductory period. If the card offers a promotional 0% interest rate for purchases or balance transfers, check how long the introductory period is available for so you can factor this into your repayments and budget. Consider your budget and calculate whether or not you can repay the balance you put on the card while the introductory offer is in place. If not, you might want to look for a card with a longer promotional interest-free period.
Standard interest rates. The standard variable rates for credit cards can be as high as 30%. Make sure you check what the promotional rate reverts to when comparing options so that you can budget for any interest charges that may apply if you’re still carrying a balance at that time.
Balance transfer or money transfer fees. Some cards have a one-off processing fee of around 2–4% when you apply for a balance transfer or money transfer. If you choose an interest-free card for your existing debt, make sure you look for this fee when comparing options so you can find one that’s affordable.
Interest-free days requirements. Credit cards that offer interest-free days for each statement cycle usually have specific conditions around eligible purchases and repayments. For example, cash advances are not eligible for interest-free days and you must pay your balance in full by the due date on each statement.
Rewards programs. Some cards earn cashback, rewards or frequent flyer points for every £1 spent on the card. These programs can provide extra value, particularly if you have an interest-free credit card for purchases. But be careful you don’t overspend in order to get more rewards, otherwise you may end up with unnecessary debt.
Annual fees. Although many cards don’t charge an annual fee, some products can charge an annual fee from £25 to over £450. Make sure that the cost of the annual fee doesn’t offset the interest savings you’ll make from the interest-free offer. You may even want to consider a credit card with no annual fee to help save on your costs.
Complimentary extras. Many cards offer complimentary extras such as international travel insurance, purchase protection, airport lounge access, extended warranty coverage and concierge services. These perks may add value to your card, but only if you think you will use them.
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.
Frequently asked questions
Yes, regardless of the type of interest-free credit card you choose, you will still need to pay at least the minimum amount required by the due date on your statement.
Regardless of the type of interest-free credit card you choose, you still need to make repayments by the statement due date each month. If you fail to maintain these regular repayments, some of the repercussions you could face include:
Interest charges.If you don’t pay your balance in full by the statement due date, interest will be applied to the remaining debt.
Late payment fees. If you don’t make a payment by the statement due date, a late payment fee may be applied. This is usually around £12 on a standard credit card or more on a charge card.
Overlimit fees. A fee of £12 can apply if you don’t repay your credit card balance and go over your available credit limit.
Cancelled promotional interest rates. If you don’t pay the balance, the interest-free promotion may no longer apply. This penalty varies depending on the card, so make sure you check the terms of your offer.
Bad credit. Failing to make repayments could have a negative impact on your credit history, especially if your account goes into default.
If you’re struggling to make a repayment by the due date on your statement, it’s important to contact your credit card provider as soon as possible. Customer service staff will assess your situation and discuss repayment options based on your individual circumstances.
Just as there are different types of interest-free offers available, there are many potential “best” interest-free credit cards depending on your individual spending habits and goals. So instead of looking for a single “best” card, you can compare a range of options based on your goals to help you find the right 0% interest rate card for you. For example, if you want to save on existing debt, you could compare 0% balance transfer cards to find one that suits your needs. Or, if you want to save on upcoming purchases, a 0% purchase rate card could be an ideal option. Whatever your goal, remember to consider the ongoing features and costs of the card.
Interest-free cards provide 0% on purchases, 0% on balance transfers and interest-free days on purchases. Depending on your needs, your ideal credit card may feature one or more of these promotions and include other features and benefits. Compare your options and consider what you need and are eligible to apply for. It is important to consider the features and costs of the card to ensure that the benefits outweigh the costs.
The interest-free period varies from card to card. In general, it can range from 12 to 28 months if you have a card with a promotional 0% balance transfer offer, or up to 55 days if it’s an interest-free days credit card. Make sure you read the terms and conditions of the card to ensure that the interest-free period complements your spending habits and financial situation.
You can’t transfer your balance to a new card under the same bank. This means that you also can’t transfer balances between banks that are owned by the same provider. For example, you can’t balance transfer between Royal Bank of Scotland and NatWest as they are both owned by RBS.
Promotional interest-free periods begin when your credit card is approved. Interest-free days begin on the first day of your statement cycle.
Yes. Transferring your existing balance after a 0% purchase or 0% balance transfer promotion has ended is allowed. Note that any balance transfer request will be subject to lending criteria and approval from the issuer.
Yes, this is generally accepted across balance transfer credit cards. Once you’ve repaid your outstanding balance, you can cancel the credit card at any time.
Typically, yes. As long as the promotional 0% interest rate applies, your overseas purchases should not attract any interest. However, any transactions that don’t count as purchases, such as withdrawing cash from an ATM or buying foreign currency, will be charged interest at the cash advance rate for your card. Be aware, your provider may charge you foreign transaction fees, although there are some specialist cards that don’t charge these fees. Make sure to check the Summary Box for your individual card for the specific details.
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. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
The gulf between the amounts received by men vs women from government-backed startup loans has widened, despite calls for more funding for women entrepreneurs.
More than 13 million Brits plan to open an ISA after the new financial year starts on 6 April, according to a new Finder survey.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
