0% purchase credit cards

With many 0% purchase cards, you won’t be able to transfer a balance. However, you may find a small number that do, although there are usually strings attached, such as interest payments and balance transfer fees being introduced.

If you’re looking for a balance transfer, you should look at dedicated balance transfer credit cards. These can be available with 0% interest and can help you consolidate debt and reduce the interest you need to pay on outstanding debts, making it easier to pay off your balance.

Both types of credit cards can be useful for balance transfers, so it’s worth looking at which you could be eligible for. If you’re looking for something that will do both, there are some credit cards that offer 0% on both purchases and balance transfers.

Don’t just assume you won’t be eligible for a 0% purchase credit card if you have a bad credit score. While you may not have as many options as those with a better score, there are still providers who may offer you one. Just keep in mind that you may not receive the advertised 0% period length, and your credit limit may also vary. Keep these things in mind, and be sure to check for any other limits, restrictions or fees when comparing 0% credit cards.

If you’re not eligible for a 0% purchase credit card now, think about ways to build your credit score and consider re-applying later.

Some 0% cards may reward you with cashback schemes, but for good cashback earning potential, you may be better off with a dedicated cashback credit card. These will offer you a specific percentage of cashback on a wide variety of purchases. Cashback credit cards reward you for spending more, so be careful to avoid building up debt.

There are cards that offer 0% balance transfer, where you can move the debt from your current card to a new one without having to pay interest on the balance you’re transferring. However, you’re likely to have to pay a fee to move the balance, typically up to 3% of the amount borrowed.  
 
You could also look at  0% balance transfer and purchase cards, which will allow you to move a balance interest-free and get 0% interest on your spending. You need to check the details carefully so that you know exactly how long the offers last for, and there may be other terms and conditions. Find out more about   0% balance transfer and purchase cards.    
 
Don’t forget that applying for balance transfer cards to move debt (just as with any other credit card) will leave a record on your credit history, which could make it harder to take out other types of credit in the short term. 

When comparing 0% purchase credit cards, it’s useful to take note of the APR for each card. The APR, or Annual Percentage Rate, is the way lenders describe the cost of borrowing money over a year. Understanding the APR can help you understand how much it could cost you to use the card, and it’s just one way to compare how much it will cost you to use a credit card.

To apply for an interest-free credit card, usually you'll need to have a regular income, preferably £20,000 or above. Supplying bank statements and pay slips can prove this. Usually, you’ll need a good credit history and the credit card provider will study your credit record using a credit reference agency. When you apply for a card, you’ll need to confirm your identification and address. Typically, this can be done by supplying passport and driver’s licence details, and documents like utility bills, tenancy agreements or your HMRC tax notification.  

You must be at least  18 years of age  to apply for a credit card. Usually, you need to be a UK resident with a UK bank account and a steady income. Typically, you can’t apply for a card if you’ve already had an application for one rejected in the past 30 days. 

Interest free credit cards with high limits let you spend more on your card – typically £1,200 or more.   
 
To be eligible for this type of card, usually you’ll need: 

• an annual salary of £20,000 or more
• a very good credit history 
• a low level of debt 

You’re likely to be charged a late payment fee if you miss one or more of your monthly minimum repayments. And if you fail to pay back the full balance within the interest-free period, you’ll probably have to pay the money back at a high rate of interest. You should call your credit card provider immediately if you’re struggling to make repayments.  
 
Remember, always use your card wisely and don’t spend more than you can afford. 

When used sensibly, a 0% purchase credit card can be a great way to spread the cost of larger items over a number of months. At  Compare the Market, we can help you find the credit card that works for you.

Increasing your credit limit can be done in two ways:

• Automatic credit limit increase – some credit card providers will increase your credit limit automatically, if you manage your existing credit well enough. By keeping up with your monthly repayments and staying within your existing limit, you’re proving you can handle the responsibility of a greater limit.
• Request a credit limit increase – if you’re not seeing an increase on your credit limit automatically, you can ask them directly for one instead. Keep in mind the credit card provider may run a credit check as part of your request, with hard credit checks leaving a record on your credit report and be visible to other lenders. Your provider will review your application and either approve, reject, or make a counter offer, perhaps with a smaller limit increase. 

While there isn’t a set limit on the number of interest free credit cards you can have, that doesn’t mean you can have endless credit cards. Each credit card will require its own application and a review of your credit report. If you open too many lines of credit, this could negatively impact your credit score, with lenders and credit card providers increasingly wary of the amount of credit you have access to. At first, you may simply lose access to interest free credit, but you could eventually see you declined for additional lines of credit.

The APR on a credit card won’t, by itself, impact your credit score in any way. However, large amounts of interest building up on your credit card would likely lower your credit score. The higher the APR, the faster the interest accrues. Having 0% APR prevents that from happening. At least while the rate lasts.