How does a 0% purchase credit card work?
If you’re looking to make an expensive purchase but aren’t in a position to cover the cost upfront, a credit card that offers a 0% deal on spending can help you spread the cost over a longer period.
These cards won’t charge any interest on purchases for an initial period of between three and 21 months. However, to really benefit you’ll need to steadily repay the debt before the promotional period ends; otherwise, you’ll be charged interest on the remaining balance at the card’s standard APR – typically around 24%.
This guide reveals the best 0% purchase deals plus everything you need to know about how to use the cards effectively.
Best 0% purchase credit card deals
The table below shows the longest-lasting 0% credit card deals currently on the market.
Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of a credit card provider before committing to any financial products.
- Find out more: best credit card deals
0% purchase credit card provider reviews
It’s frustrating that you never know what you’re going to get with a credit card provider until after you’ve applied and taken out a deal.
Fortunately, Which? has surveyed thousands of customers to help you find out what 31 of the biggest credit card providers are like for customer service and managing your account, before signing up.
You can check out how the major players in the 0% purchase credit card market such as Tesco Bank , M&S Bank and more compare in our guide to the best credit card providers .
The companies that combine great deals with top-notch customer satisfaction are awarded our coveted Which? Recommended Provider status.
Is an interest-free purchase credit card better than a personal loan?
In some circumstances, a 0% credit card may be better suited to your needs than a personal loan.
With an interest-free credit card, you don’t have to commit to anything higher than the minimum repayment each month. It’s also a form of ‘revolving credit’, so what you pay back you can spend again.
In contrast, when you take out a personal loan you will need to make fixed monthly repayments for as long as you’ve asked to borrow for and won’t be able to use that money again.
The best 0% purchase credit cards offer up to 21 months interest-free but even with the cheapest loan, you will have to pay interest. The best personal loan deals for £5,000 spread across three years is around 7.3% APR right now.
The amount you can borrow may also differ. You can choose to borrow smaller amounts with a credit card – even if you are given a big limit. In contrast, the smallest amount you can get with a personal loan is £3,000 and the rates aren’t as competitive compared to borrowing larger amounts.
The table sets out some of the main differences to consider.
How to use a 0% purchase credit card effectively
If you’re planning to take out a 0% purchase credit card make sure you know the golden rules that will help you get the most out of the deal.
1. Only borrow what you need
With a 0% purchase credit card it’s important to just borrow what you need and can afford to pay back.
So even if you get a credit card with a high limit of £10,000, you shouldn’t max out your borrowing if you may be unable to clear the balance after the 0% period.
2. Make at least the minimum repayment each month
Even if you plan to delay repaying the bulk of what you borrow on a 0% purchase credit card you’ll need to make at least the minimum repayment on time each month.
If you don’t, you’ll not only incur a late payment fee (typically around £12) but could lose the 0% deal altogether. To avoid getting caught out, set up a direct debit to cover this amount.
The minimum on a credit card is usually around 1% of the outstanding balance but can be more so double-check your card’s terms and conditions.
If you can afford to pay back more than the minimum repayment you should.
3. Have a plan to repay the debt
The key to making the most of a 0% purchase credit card is to ensure you have no remaining debt when the interest-free period comes to an end.
A simple way to do this is to divide the total you’ve spent on your credit card by the number of months that your 0% deal lasts for and set up a direct debit to pay off that amount each month, in the same way you would pay off a loan.
Provided you don’t make any more purchases, this will ensure you don’t pay interest on what you’ve borrowed.
If you have some debt remaining after your card’s promotional period ends, consider shifting this to a card that offers a 0% interest deal on balance transfers.
You can use our 0% purchase credit card calculator to work out what your repayments should be:
4. Don’t withdraw cash on your card
You should avoid withdrawing cash using your 0% purchase credit card.
If you do you will be charged interest from the day you take the money out and usually at a much higher rate.
That’s because your 0% deal is only for new purchases you make with the card online and in shops or restaurants – not for taking cash out of an ATM or for any other cash advance such as buying travel money.
Some providers also report when you make a cash withdrawal on your credit record, as it suggests you may be in financial difficulty.
0% purchase credit cards FAQs
Here are some common queries about 0% purchase credit cards.
How we analyse credit cards
Sam Wilson, credit card market analyst, says: ‘At Which? we put credit card products and providers under the microscope to help you save time when shopping around for a new deal.
‘We run a survey each year to gather the experiences of customers to help us find the best providers and we keep a close eye on the credit card market to determine which deals are the best in their category.’
Here’s some more information about our research and the terms we use in this guide.
Customer score
Our provider customer scores are based on an online survey of 3,775 members of the public, conducted in October 2023.
Customer scores are worked out using a combination of overall satisfaction and the likelihood of recommending the provider to a friend.
Which? Best Buys
To become a Which? Best Buy, a credit card must have been one of the top five cards in its category and must also satisfy specific criteria for the type of card such as the size of balance transfer fee or length of 0% period. A provider must have also achieved a provider score of over 65% in our latest credit card provider customer satisfaction survey.
We also update our analysis regularly, which means we will withdraw Best Buys if providers make adverse changes to APRs, 0% periods or fees.
Which? Recommended Providers
We award Which? Recommended Providers to the lenders that meet our benchmarks on customer service and product offering.
To become a Which? Recommended Providers a lender must have:
- a provider score of at least 75%
- at least one top-10 card in one of the seven main categories available on the market
- a product analysis score that’s average or above
- not have a representative APR of more than 33% on any of its mainstream cards at the time of the analysis.
- Find out more: Which? symbols, logos and ratings explained
Why should you trust Which? research?
We’re not influenced by third parties. We work entirely on behalf of you, the consumer – nobody else. See our statement of editorial independence for more.
