0% Purchase Credit Cards 2019-09-12T09:17:43+00:00


What Is A 0% Purchase Credit Card?

0% purchase credit cards don’t charge interest on any spending made on the card during a pre set period. At the end of the pre set period interest will then start to be charged at the standard purchase rate on the amount borrowed. At this point it would be a good idea to look to transfer any outstanding balance to a 0% balance transfer credit card which allows you more time to pay off the debt interest free.


0% purchase credit cards offer you the chance to spread your costs on everyday items or expensive items without having to pay any interest for a set period.

0% cards work by not charging interest on any purchases made within a pre-defined period. At the end of this period interest will then start to be charged on any outstanding balance. It is a good idea to try and pay off your balance before this occurs. A minimum payment must be made each month so it is a good idea to set up a direct debit to avoid missing one of these as it could see the 0% revoked. Once you come to the end of the 0% interest period it is a good idea to start looking for another credit card.

These types of credit cards can usually be used to buy anything whether online or on the high street. It is a good idea to use these for expensive purchases as they offer more protection over debit cards if something goes wrong with the payment. You can also withdraw cash using these cards however, this will come at a cost with a high interest rate.

Benefits & Disadvantages

✅ A big advantage is this type of credit card allows you to make expensive purchases and spread the cost over a number of months without any interest having to be paid providing the balance is paid off in full before the interest free period ends.

✅ Some credits cards also have incentives for you to spend such as loyalty points and cashback which can be a nice little extra.

✅ When making expensive purchases with a credit card (between £100 and £30,000) you are protected under the Consumer Credit Act 1974, which means if anything should go wrong you could get your money back.

❌ These types of cards likely have a high interest rate once you come to the end of the 0% interest period and so it is a good idea to make sure you pay off any balance before this occurs.

❌ Withdrawing cash using your credit card comes with a cost and doing it frequently could allow interest payments to add up quickly.

❌ The 0% interest free period can be withdrawn or a penalty fee added if you fail to make a minimum payment or go over your credit limit.