0% Purchase Credit Cards

How 0% purchase credit cards work...

A 0% purchase credit card offers you the chance to buy all the things you want, but can’t afford, then pay it off gradually without chalking up any interest charges.

If you struggle to save, but have grown tired of squinting at your tiny TV and had enough of wet weekends in Skegness, then a 0% purchase credit card could be the answer to your prayers.

Doing things backwards?

0% purchase credit cards - if used carefully - are like inverted saving. Instead of collecting your pennies for months and months before splurging it all, you splurge then collect the pennies afterwards.

The majority of these types of credit card will offer a 0% introductory rate on purchases for around 6-10 months; more than enough time to pay off your purchases, provided you budget your income correctly.

What's the catch?

Its clearly not just an interest free loan, and it is particularly important to repay the amount you've spent within the introductory time frame, because once the 0% period expires the credit card will revert to a standard interest rate (usually around 15% p.a.) which, left to linger, will make your new stereo system sound much poorer.

Shouldn't I just choose the card with the longest interest free period?

This is entirely dependent on your personal finances and what you need the card for.

- If you just want to buy a one off item and pay it off over a period of months, then all you need is a card offering 0% on purchases for a long introductory period.

- If you want to use the card for a purchase, but also to transfer an existing balance, then you need to look for a card that's suitable for both.

Be careful! If you have a balance to transfer there are many 0% purchase credit cards that provide the facility to move a balance, but they often offer a long 0% balance transfer period coupled with a short introductory purchase period. For example a card company may propose:

'0% on balance transfers for 10 months and 0% on purchases for 6 months.'

This seems very attractive at first glance, but when the shorter introductory purchase period expires the card issuer will stipulate that the lower interest balance transfer must be cleared in full before any of your high interest purchases can be accounted for. This means that you will be left with trapped interest-accumulating spending debt.

Try to choose a credit card that offers a 0% introductory rate on purchases and balance transfers that expire at the same time. See 0% balance transfer and purchase credit cards.

Compare 0% purchase credit cards