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Compare 0% credit cards

Compare 0% credit cards

A 0% credit card can be a useful way to reduce the amount of interest you’re paying, but there are key things you’ll need to watch out for when comparing. Here’s what you need to know…

Anelda Knoesen
From the Money team
minute read
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Posted 9 JANUARY 2020

What are 0% credit cards?

A 0% credit card is an interest-free card that allows you to spread paying back the balance owed over the length of the interest-free term, without paying any interest at all (if you stay within the T&Cs and pay the minimum monthly payment). 

What happens if I miss a repayment?

If you miss a payment on your credit card bill, then you’ll almost immediately lose your interest-free period and will open the floodgates to high annual interest charges – plus, you could damage your credit rating.

You should always make sure that you borrow responsibly, because in the end you’ll have to pay the money back.

What is the advantage of a 0% credit card?

0% credit cards can be useful if you need to make a big purchase, or if you’re looking to consolidate several smaller cards into one account. This is a legitimate way of organising your finances, but it can be risky. 

What types of 0% credit cards are available?

0% balance transfer could be useful if you already have a credit card and are being charged a high interest rate on the outstanding balance. You can transfer the balance from one card to another and pay 0% interest over the term. 

With this type of card, you’ll typically be charged a fee (normally 2-3%) on the amount you transfer. However, this is much less than the  interest rate you might be charged on an existing card, which can be anywhere from 15-20%.

0% purchase card These cards offer you 0% on your spending for a set period of time. These zero rate credit cards can be a real help if you need to pay for an expensive purchase – but when the interest-free period ends, you’ll be charged interest on what you owe on your card.

What are 0% credit cards with high limits?

As the name implies, these cards have 0% deals on a balance owed, but also offer spend limits of usually £1,200 or more. 

To qualify for one of these cards, you’ll typically need to have a good credit record and an income of £20,000 or more.

Why should I compare?

There are lots of 0% cards and 0% balance transfer cards, but it’s important to find one that suits your needs. The best way to do this is by using our credit card comparison service, which helps simplify the process. Always remember to carefully check the terms and conditions of each card.

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