0% Balance Transfer and Purchase Credit Cards

How 0% balance transfer and purchase credit cards work...

If you have debts from previous expenditure hanging over your head and more expensive events up ahead, then a 0% balance transfer and purchase credit card could be right up your street.

These cards offer the services of both 0% balance transfer credit cards and 0% purchase credit cards in one - and without some of the pitfalls single-offer 0% cards can carry.

The best of both worlds

If you are looking to transfer a current credit card balance to a 0% deal and enjoy some 0% spending too - unless you're willing to take out two credit cards - then these are the only 0% credit card types you should be looking at.

What makes these cards so special?

In their non-combined form, the 0% balance transfer credit card and the 0% purchase credit card can be - despite their promises - pretty lacklustre for anything other than their special offers. The most frequent con of the 0% cards is to try and trap the balance of your purchases behind lower rate balance transfers that must be paid off first.

If you have a balance to transfer, there are many 0% purchase credit cards that provide the facility to move a balance, likewise if you want to spend on a 0% balance transfer credit card they will not attempt to discourage you.

However, many of these 'single-offer' or asynchronous 0% cards are not as well suited for both transferring a balance and purchase spending, as they would like to have you believe.

The card issuer will usually stipulate that any transactions on your credit card charged at a higher rate of interest - such as purchases - can only be repaid after your cheaper rate account balances - such as 0% balance transfers. Leaving any purchases to accrue interest until your transferred balance is fully repaid - destroying any of the money saving benefits you set out to enjoy.

The only sure-fire method of avoiding this type of trap - is to either only use a 0% balance transfer credit card for a balance transfer, and get a separate card for all your purchases - or, simply make sure you take out a 0% balance transfer and purchase credit card offering 0% deals that will run for the same length of time.

Not all cards were built the same

Not all credit cards offering 0% on balance transfers and 0% on purchases make for a good '0% balance transfer and purchase credit card' - the card must offer these 0% rates on both balance types for an equal length of time.

There are still a few other areas to be aware of, such as handling fees and cash withdrawal charges. Fortunately, these are all covered in the next section 'How to Choose' along with all the other benefits you can reap from your card.

Compare 0% balance transfer and purchase credit cards