A simples guide

Interest Free purchase Credit Cards

Sometimes in life you need to make a purchase that’s not worth taking out a loan for. Whether it’s something for the house, or a must-have item, having an interest free lending option can be useful. That’s where an interest free purchase credit card can be handy.

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What are interest free purchase credit cards?

As the name suggests, an interest free purchase credit card allows you to make purchases without paying a penny in interest over a set period of time. Whether you want to refit the bathroom, buy a new car, or go on holiday, interest free purchase credit cards an alternative to a small loan.

While they might sound unique, they’re essentially just regular credit cards that offer an initial period of 0% interest on purchases– usually for 12 months or more. During this time you can make purchases with no interest, providing you make the minimum monthly payments and pay off the debt before the interest free offer ends. So make sure you know when the offer ends and that you are aware what the interest rate will increase to, so there are no surprises.

credit card and laptop
credit card

What’s the best interest free purchase credit card?

Ideally you’ll want a no-interest purchase credit card that gives you the longest period of 0% percent interest, a decent limit, and no yearly fee. Of course if you plan on using the card once the offer ends, finding one with an attractive regular interest rate is a no brainer too.

To find some of the best interest free purchase credit cards available, head to our 0% purchase credit card comparison service and get comparing - it couldn’t be quicker or simpler. There you’ll find a list of top deals from many leading lenders, so you’re bound to snare something that’s right for you.

How to get an interest free purchase credit card

Once you’ve found something that ticks all your boxes, it’s time to apply for it. This is where your credit history comes into play. If you have a squeaky clean credit history with a high credit rating you’ll probably sail straight through. If it’s negative, you risk being rejected. Fortunately, credit rating agencies can help you find out where you stand before you apply, but don’t risk multiple applications going against you.

Luckily there are now credit cards for all kinds of borrower, so if you’ve got a poor credit history, you may still be ok (if this is you, see our credit building credit card page).

Things to remember about interest free purchase credit cards

Once you’ve picked one out, interest free purchase credit cards are a pretty simple deal. To ensure you get the best out of yours, however, there are just a few things to remember:

  • Ensure your borrowing stays free: 0% interest purchase credit cards are only useful if you keep track of how you’re using them. If you’ve got two whole years of interest-free spending, it’s easy to lose track of time or put off paying it back. If you don’t pay it back on time, however, then the regular interest rates will apply and your purchases will begin to cost you money - completely foiling your savvy interest free borrowing plan in the process.
  • Direct debit repayments: A good way to keep on top of your repayments is to set up a direct debit. These can easily be done online and allow you to clear debts without much effort. What’s more, you’ll be able to budget around the repayments. If you have £1,000 of debt on a two-year deal, then a £42-per-month direct debit will make it vanish into thin air.
  • Don’t spend more than you can afford to pay back: This is really a no brainer, but it’s tempting to indulge in a spending spree when you haven’t got to worry about paying it back immediately.If you’ve obtained an interest free purchase credit card with the intention of making a specific purchase, then see if the repayments can fit comfortably within your monthly outgoings first.
  • When the interest free deal expires: If you don’t plan on using your interest free purchase credit card with the regular rates, then it’s wise to take a pair of scissors to it and close your account with your credit card provider. Don’t feel sad - you’ve had a good interest free run together.

So start using our credit card comparison service to start comparing 0% interest purchase credit cards deals and help you find the right card for you.

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