How does it work?
Essentially, a 0% purchase card gives you a set amount of time in which all the purchases you make using that card are interest-free.
As you might expect, the length of the interest-free period differs from card to card – but it can be anything between a few months and a few years.
Of course, 0% on purchases shouldn’t be confused with no costs at all, as you’ll need to make at least a minimum repayment each month. But if you keep up with your repayments and pay off the balance completely before the end of the interest-free period, that’ll mean you won’t pay any interest at all. And, depending on how you use the card, that could be quite a tidy saving when you think about it.
How does 0% on purchases help?
A card with 0% on purchases can be handy, especially if you’ve got a large purchase to make, like buying a car, booking a holiday or paying for house renovations. And the same goes for any unexpected costs, like car repairs or boiler breakdowns. Using this type of card can be a good way to spread the cost, because you can take more time to pay off the balance – all without facing any interest charges for as long as the interest-free period lasts.
One thing to remember
The key thing to bear in mind about a 0% purchase card is that the interest-free period is limited, and once it ends, you’ll need to start paying interest on any remaining balance at the standard rate.
Usually, with a 0% purchase card, this can be a little higher than some other types of cards, so you’ll want to make sure you pay down the balance within the interest-free period to avoid any interest charges.
So, what are the benefits?
If you decide a 0% interest card is right for you, it’s worth checking what else comes with it. For example, some cards offer cashback and rewards as you spend. Here’s a breakdown of the benefits:
- you can spread the cost of bigger purchases like holidays and home improvements by paying them back, for example, in monthly instalments
- you’ll pay no interest on any purchases you make for a set period
- your card may come with other perks like 0% interest on balance transfers, or cashback whenever you make a purchase
- you have purchase protection which could help you claim your money back if there’s a problem with any purchase you make using your card.
Applying for a 0% credit card
If you’re thinking of applying for one of our 0% purchase cards, our eligibility checker can tell you if you’re likely to be accepted without affecting your credit score. It’s quick and easy to check if you’re eligible for a purchase card.
Of course, before applying for any type of credit card, it’s always worth checking your credit score. Banks and other lenders use it as a way to determine how reliable you are at managing your money or paying your debts. So the higher your score is, the more likely you are to be offered a 0% interest card – with a longer interest-free period.
So, if you’re considering a 0% purchase card, you’ll know exactly where you stand when you check your credit score.
What’s next?
If you’d like to spread the cost of your purchases, our 0% credit cards can help. Or if you have other priorities, we have other cards, which you can also browse here.
