Credit card 0% interest terms slashed

Providers appear to be scaling back 0% interest deals on credit cards in the run-up to the festive spending season. If you are looking for a new 0% introductory purchase or balance transfer card, we have put together the best deals currently available and a run-down on the current movements in the market.

Since the beginning of last month, several introductory interest-free offers have been slashed, according to Moneyfacts’ data. Barclaycard, Virgin Money, MBNA and Halifax have reduced either their 0% introductory purchase or balance transfer offers.

If you are considering an interest-free credit card to spread the cost of any purchases, you would be wise to review the latest offers in the run-up to Black Friday and Cyber Monday.

The top 0% introductory purchase credit card currently offers shoppers almost two years to pay back debts, which could be a lifeline for those worried about covering the cost of Christmas this year.

You can compare the top 0% credit cards to get an idea of what's out there. To help, here are a few of the best 0% deals currently available:

There are a few providers offering 0% introductory balance transfer offers that will not charge you a balance transfer fee, and you can explore our chart to compare these options.

If you don't have a credit card with an interest-free offer, you may be concerned that interest rates within the credit card market have risen, indeed the average purchase rate stands at a record high of 34.5% APR.

If you borrowed £1,000 on a credit card that charges 34.5%, but made £100 in fixed repayments, it would cost around £165 in interest and take a year to repay.

However, if you stuck to repaying £50 per month, it would take twice as long to repay and cost around £400 in interest. (Based on a £1,000 borrowing on a credit card charging 34.5% APR, with a minimum repayment of 2.5% or £5 whichever the greater. Difference in interest based on fixed repayments of £100 or £50.)

If you are worried about covering costs, check out our guides for some handy tips. You can also use our repayment calculator to see how much interest you could save by switching deals.