Compare the Best 0% Purchase Credit Cards

0% purchase credit cards explained

What is a 0% purchase credit card?

A 0% purchase credit card is a type of credit card that doesn’t charge any interest on your spending for a specified period.

This interest-free period could range from as little as three months to more than 20 months, potentially helping you to save hundreds of pounds (or even more) in interest compared to borrowing on a standard credit card over the same period.

With a 0% credit card, you can buy goods and services in-store or online, for example, without paying any interest.

This is on condition you meet the minimum monthly payments and the other terms of the card and that you clear your balance before the end of the 0% period.

How does an interest-free credit card work?

You can use a credit card with an interest-free period for your spending, whether it’s to pay for a particularly expensive item, a holiday or for a range of smaller purchases.

Unlike standard credit cards which charge interest on your balance, 0% credit cards won’t charge interest for the specified period. For example, a credit card with a 12-month interest-free period won’t charge any interest for 12 months.

Some credit cards won’t charge any interest on any purchases made during the entire 0% period. However, others may only offer 0% interest on purchases made during a limited period at the start of the offer, but give you a set number of months interest-free to pay these off after that.

For example, purchases made within 60 days of taking out the card may be eligible for the 0% offer and won’t be charged interest; but any purchases made after this point will be charged interest at the standard rate. Always check for this restriction before applying for a card.

While you won’t be charged any interest during this period, you still need to make at least the minimum monthly payments. Otherwise, you risk losing the 0% offer and the provider may charge a penalty fee.

Once the 0% period ends, the provider will charge interest on any balance left outstanding on your credit card. This means you need to clear your balance in full (either by paying it off or by transferring it to a 0% balance transfer card) before the end of the 0% period to avoid paying any interest.

As with all credit cards, you also need to keep within your credit limit.

While you won’t be charged interest on purchases, interest or fees may be charged on other activities such as spending overseas or cash withdrawals, for example.

What can you use a 0% purchase credit card for?

It’s possible to use a 0% purchase credit card for most purchases, both online and in-store, provided the retailer accepts credit cards.

For example, you may use a 0% credit card to spread the cost of a holiday, a new car or an expensive new appliance such as a washing machine or television.

You could also use a 0% credit card for your supermarket shopping and other spending, or to cover any emergency expenses. For example, a 0% credit card could be a useful back-up option if you need to pay for unexpected repairs or replacements, or if your income suddenly drops for some reason.

But, whatever the reason for using a 0% purchase credit card, it’s important to only spend what you can afford to repay. It shouldn’t be an excuse to overspend as you’re likely to face expensive interest charges if you can’t clear your debt before the end of the 0% period.

Some 0% cards may also offer an interest-free period on balance transfers or money transfers. However, these may be different to the interest-free purchase period, so it’s important to check the terms of a card for more information.

Bear in mind that, while you may be able to use a 0% purchase credit card for cash withdrawals, expensive interest charges may apply.

How long is the interest-free period on an interest-free credit card?

The 0% period on an interest-free credit card can vary. At the time of writing, the longest interest-free period available is up to 23 months.

Bear in mind that you may not receive the advertised offer if the card says the 0% period is “up to” a certain number of months. The actual 0% offer you receive will depend on your credit history and personal circumstances.

However, some purchase credit cards offer a fixed 0% period, which means you will definitely receive this offer if you’re approved for the card.

What happens after the interest-free period ends?

Once the interest-free period comes to an end, interest will start to be charged on any outstanding balances and on any further purchases.

You can carry on spending with the card once the 0% offer ends, but aim to clear your balance each month to avoid paying interest.

What happens if you don’t pay off your 0% interest credit card?

If you don’t pay off your credit card before the end of the 0% period, you will be charged interest on the outstanding balance.

However, if you want to avoid paying interest but don’t have the money to pay off your card, you could consider moving your debt to a balance transfer credit card. If you qualify for a 0% balance transfer offer, you can continue to avoid paying interest for the specified period, giving yourself longer to pay off your card.

If you want to transfer your balance, make sure to do this before the end of your existing 0% offer, otherwise you may be charged interest.

What is the purchase rate on a credit card?

The purchase rate on a credit card is the interest rate that you’ll be charged on your purchases.

If a purchase card has an introductory 0% offer, this means you won’t be charged interest for this period. Once this offer ends, the purchase rate applies which means you will be charged interest at this rate.

Note that the annual percentage rate (APR) of a credit card is calculated using the purchase interest rate, plus any fees.

Applying for a 0% purchase credit card

You can typically apply for a purchase credit card if you’re over 18 years old and have a UK bank account, although some providers may only accept applications from those aged over 21.

When you apply, you’ll need to tell the provider your name, address, date of birth and contact details, as well as information about your employment status, income and financial dependants.

Some providers may set a minimum income requirement and other criteria, so always make sure you meet these before applying. For example, some may only consider applications from those with a good credit history and record of managing payments.

Will applying for an interest-free credit card score affect my credit score?

Yes, providers will run a hard credit check when you apply for any type of credit card.

While one hard check is unlikely to have a significant impact on your score, multiple applications for credit in a short space of time could be viewed negatively by lenders and harm your score. This is why it’s so important to only apply for a credit card if you’re confident of approval, so you limit the number of applications you make.

Because of this, it’s a good idea to see if you qualify for different credit cards before formally applying, as this allows you to see your chances of approval with no impact on your credit history.

How many 0% credit cards can you have?

Theoretically, you can have as many 0% credit cards as you like, on condition that you pass the provider’s checks. However, it’s important to consider that lenders will run a hard credit check every time you apply for a card, and multiple applications in a short period could affect your score. Furthermore, having access to too much credit on multiple cards could also affect your credit score and make providers wary, affecting your chances of getting credit in the future.

Importantly, if you have multiple credit cards, there’s a greater risk that you could build up too much debt that you can’t afford to repay. If you have more than one credit card, it’s crucial to stay on top of your spending and manage your debts effectively, otherwise this could harm your credit history and have more serious consequences for your finances.

How do I know if I qualify for an interest-free credit card?

You can see if you qualify for an interest-free credit card by checking your eligibility first. This involves a soft credit search which won’t be visible on your credit report or affect your score.

See the interest-free credit card offers you qualify for with our partner Monevo.

Other types of credit card to consider

Depending on what you need the credit card for and your financial situation, a different type of credit card may be more suitable for you than a 0% purchase card.

For example, if you’re currently paying interest on any existing credit card debt, moving it to a 0% balance transfer credit card could help you save money.

Alternatively, if you’re confident that you can afford to clear your credit card balance every month, a cashback credit card or rewards credit card may offer more benefits than a 0% interest card.

Anyone planning to travel abroad may be interested in a specialist travel credit card to avoid paying any expensive overseas fees.

Meanwhile, those with poorer credit histories who may not qualify for the most competitive credit cards could consider taking out a credit builder card.