0% Purchase Credit Cards

How to use a 0% purchase credit card...

So you have decided that you definitely need that surround sound system, but you don’t have the cash. A 0% purchase credit card can be the perfect companion on your shopping sprees, but can easily turn into an enemy if ill treated.

Choosemoney.co.uk can help you prevent your flexible friend from turning into a lithe liability.

Making the most of your card:

- Spend what you can afford
Seems quite obvious, but it is easy to ignore, particularly if you are using your 0% purchase card for an extended period of time, to buy a multitude of things.

It is also easy to ignore what you can afford to repay and simply spend to the cards limit. This can be a foolhardy technique, especially if you have spent over a period of months, as you will have less time to repay your debts before the interest rate kicks in.

- Spend as quickly as possible
If you have a certain item, or selection of items to buy, it is best to buy them as soon as you receive the card. That way you can maximise the amount of time you have available to pay back the money.

Note! It is important to remember that the introductory period runs from the time you open the account not from when you get the card. Get a firm idea of what you want before you apply for the card to help you with the repayments.

- Plan your repayments
Before you receive your card make a rough guide of how much you are likely to spend so that you can be prepared for the payments. It may be advisable to set up a direct debit for a certain amount each month to ensure you can pay back the full amount within the introductory period and to prevent you from missing any payments.

Things to watch out for:

Balance transfers:

• Make sure the card you choose offers a 0% rate for balance transfers too.
• Make sure the introductory periods for the balance transfer and purchase period are for an equivocal timescale.

Play by the rules:

• If you miss a payment you will lose your 0% introductory offer.
• Don't spend over the card limit or it will revert to the standard interest rate.

Cash transactions:

• Avoid using ATM's, getting cash back, or purchasing foreign currency, as these methods of payment are excluded from the 0% purchase rate deal.

Know the expiry:

• Make sure you are aware of when the 0% deal runs out on your card so that you aren't stung with interest.

Compare 0% purchase credit cards