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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Many financial experts predict that the easing of lockdown will see a spending boom among consumers looking to spend money they have saved over the last 12 months. While ideally, consumers will be using their savings to enjoy the new freedoms, others may be considering borrowing money instead.
When considering borrowing money, it is not advisable to borrow unnecessarily and borrowers must have the ability to keep up with repayments. But, while it should often be a last resort for consumers, if done sensibly, borrowing can be a useful tool for personal financial management.
For those who have to borrow, the best way to do so is to borrow without paying interest. The best way to borrow using interest-free credit is to have a repayment plan in mind before borrowing the money to ensure that it can be fully repaid before the interest-free period ends so that interest is never added to the money borrowed.
One of the most common ways to borrow without paying interest is with a 0% purchase credit card. These cards offer borrowers a period in which they can make purchases on the credit card without having to pay interest. In addition to this, credit cards also have the added benefit of providing consumers with added protection on purchases under Section 75 of the Consumer Credit Act.
Under Section 75, credit card providers must protect all purchases over £100, which can include holiday bookings and household goods. This protection means that consumers can get their money back if they fail to receive the item purchased or the goods are faulty.
The longest interest-free term on a 0% purchase credit card is currently 21 months, which is available on Lloyds Bank’s Platinum 0% Purchase and Balance Transfer Mastercard. Once the interest-free period on this card ends, it charges 21.9% APR.
The next longest interest-free period is 20 months, which is available on four cards:
To find out more information about these cards and compare all 0% purchase credit cards, visit our 0% purchase card chart.
Borrowing via an overdraft is often one of the most expensive ways to borrow, but some bank accounts do allow customers to go into their overdraft for a limited amount without paying interest. This interest-free overdraft limit is often very small, for example on HSBC's Advance account, customers can only borrow up to £25 of their overdraft before interest of 39.90% EAR is charged.
As well as this, borrowing through an overdraft does not provide consumers with the Section 75 protection that borrowing on a credit card provides.
Another way consumers can borrow interest-free is through buy now, pay later. Although many stores offer this method of borrowing now, consumers should be cautious about borrowing this way as buy now, pay later lending is not regulated, which means consumers cannot complain to the ombudsman if there is an issue. In addition to this, purchases made through buy now, pay later are not covered by Section 75 protection.
Consumers should also be wary about borrowing through buy now, pay later as they can encourage unnecessary borrowing, which can lead to some borrowers falling into a high amount of debt.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
The number of loan and credit card providers dropped during the third quarter of 2024, while average interest rates increased. See what this could mean for you.
The number of loan and credit card providers dropped during the third quarter of 2024, while average interest rates increased.
Meanwhile, the average credit card purchase APR has reached a record high. Find out more.
Meanwhile, the average credit card purchase APR has reached a record high.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
The number of loan and credit card providers dropped during the third quarter of 2024, while average interest rates increased. See what this could mean for you.
The number of loan and credit card providers dropped during the third quarter of 2024, while average interest rates increased.
Meanwhile, the average credit card purchase APR has reached a record high. Find out more.
Meanwhile, the average credit card purchase APR has reached a record high.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.