Best 0% Purchase Credit Cards
Editorial Note: This content has been independently collected by the Forbes Advisor team and is offered on a non-advised basis. This content is not part of the comparison service provided by RunPath Regulatory Services. Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
When used with care, a 0% purchase credit card means you can spread the cost of big-ticket items over time without having to pay a penny more than the value of the goods or services you are buying.
This is particularly useful if you don’t have immediate access to the cash required, yet you know you could afford to pay for it over the interest-free period. And even if you do have the money in the bank, you might want to keep it back for a rainy day and borrow cost-free instead.
What are the best deals?
Our research (July 2022) found that the best 0% cards for purchase come with periods of up to 25 months. However, what’s best for you will be determined by your income, credit score and personal circumstances. Bear in mind that deals can change, too.
*Fairer Finance data (July 2022)
How did we rank the cards?
We’ve ranked the top 0% purchase cards by the following factors, and in order of importance:
- 0% interest period: how many months you can make purchases on the card without being charged interest
- Interest rate: the representative APR you’ll be charged when the zero-interest period ends
- Customer experience: the customer experience rating of the card issuer (rounded up or down to the nearest whole), as measured by independent data provider, Fairer Finance.
There is a good chance the APR (annual percentage rate) you see advertised will not be the one you are offered. APRs are ‘representative’ which means they must only apply to 51% of successful applicants.
The 0% purchase cards with the lengthiest terms are reserved for applicants with top credit scores. Always use an eligibility checker before applying to see your chances of being accepted. This way your credit score isn’t damaged if you’re rejected.
0% purchase credit cards in a nutshell
A 0% purchase credit card charges zero interest on borrowing for new purchases for a stated number of months. This time period is normally referred to as an ‘introductory offer’ or ‘promotional period’.
During the promotional period, 100% of your credit card repayments will go towards repaying your debt, not towards paying interest.
So, using a 0% purchase credit card means you can effectively borrow money for free, so long as you repay the entire debt before the end of the 0% period – and don’t incur other fees.
What can you use a 0% purchase card for?
For this reason, these cards are ideal for spreading the cost of large purchases, such as a new car or holiday. Alternatively, you can use a 0% purchase card for numerous small purchases.
Either way, the golden rule is to repay your debt within the interest-free period. For example, if you borrow £2,000 on the card and can afford to repay £100 a month, you need a card offering 0% interest on purchases for at least 20 months.
How can I find the best deal?
Broadly speaking – and so long as you use the card efficiently – the best 0% purchase card is simply the one that offers the longest interest-free period.
However, there are other factors to consider too. For example, any annual fees for having the card as well as the APR (annual percentage rate) that applies after the interest-free period ends, should you have a balance remaining.
Be aware that the rate advertised is representative which means it only has to be offered to 51% of successful applicants. You could be in the 49% of customers given a higher rate.
Customer experience can also play a part. Having a credit card that’s easy to manage will help when it comes to clearing your purchase balance before interest kicks in.
Unlike 0% balance transfer and money transfer credit cards, there’s no particular timeframe in which you need to make purchases to qualify for 0%. The only stipulation on 0% purchase cards is that purchases will need to be made within the 0% introductory offer period.
What about fees?
There are not usually any upfront fees associated with a 0% purchase credit card, although some premium credit cards might charge monthly or annual fees, while some kinds of transactions (such as taking cash out of an ATM or using your card overseas) are also likely to cost.
And, just like any other credit card, you still need to make at least the minimum payment each month. If you don’t you’ll be charged a late payment fee which is normally about £12. You may also lose your 0% promotional offer, and your credit score is likely to be damaged.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.