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.
Be more money savvy
free newsletter
Get a firmer grip on your finances with the expert tips in our Money newsletter – it's free weekly.
This newsletter delivers free money-related content, along with other information about Which? Group products and services. Unsubscribe whenever you want. Your data will be processed in accordance with our Privacy policy
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.
best buy Barclaycard Platinum All-Rounder Visa | 72% | 21 months | 24.9% | 24.9% Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 24.9% (variable), representative 24.9% APR (variable). Credit available subject to status. Terms apply. |
M&S Bank Credit Card Shopping Plus Offer Mastercard | 78% | 18 months | 23.9% | 23.9% Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 23.9% (variable), representative 23.9% APR (variable). Credit available subject to status. Terms apply. |
MBNA Limited 0% Transfer and Purchase Credit Card Mastercard | 66% | 18 months | 23.9% | 23.9% Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 23.9% (variable), representative 23.9% APR (variable). Credit available subject to status. Terms apply. |
HSBC Purchase Plus Credit Card Visa | 69% | 18 months | 24.9% | 24.9% Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 24.9% (variable), representative 24.9% APR (variable). Credit available subject to status. Terms apply. |
Table notes:table correct as of 3 January 2024. The average provider customer score is 69%. For more information on our research and the terms we use in the table skip to how we analyse credit card providers and deals.
- 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 , 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 circ*mstances, 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.
| Credit card | Personal loan |
|---|---|
| You can borrow smaller amounts at competitive rates | The smallest amount you can borrow is £3,000 and rates aren't as good compared to borrowing more |
| Repayments are flexible | Repayments are fixed |
| You can avoid paying interest for a number of months on a 0% purchase deal | You will have to pay interest on the money you borrow even on the cheapest personal loans |
| You get revolving credit so you can spend what you pay back | You can't spend any more than you originally borrow |
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.
Your ability to get the best 0% purchase credit card deals will depend on the information in your credit report.
Credit cards providers only have to offer their advertised offer to 51% of applicants so the other 49% could get a worse deal.
Some lenders will allow you to do a soft search before you apply to see the likelihood of getting accepted.
Find out more in our guide to how to check your credit score for free
A 0% purchase credit card shouldn't be used to transfer money from your card to your bank account unless there is a 0% money transfer offer on the same deal.
The 0% purchase deal only applies to new spending you do in shops or online. So if your card provider allows you to do a money transfer double check what interest rate it is charging (it might be a 0% deal but for a shorter period than the purchase deal) and the fee for the money transfer.
A 0% purchase credit card shouldn't be used to transfer a balance from an existing credit card to your new card unless there is a 0% balance transfer offer on the same deal.
The 0% purchase deal only applies to new spending you do in shops or online. So if your card provider allows you to do a balance transfer double check what rate it is charging (it might be a 0% deal but for a shorter period than the purchase deal) and the fee for the balance transfer.
The limit you get will depend on your credit profile and a lender's assessment of your credit report and affordability.
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.
Back to table
- Find out more:Which? symbols, logos and ratings explained
key information
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.
I am an expert in the topic of credit cards and personal finance. I have extensive knowledge and experience in understanding how credit cards work, including 0% purchase credit cards. I can provide you with detailed information and insights on this subject.
Let's dive into the concept of 0% purchase credit cards and how they work.
How does a 0% purchase credit card work?
A 0% purchase credit card allows you to make purchases without incurring any interest charges for a specific period of time. During this promotional period, which typically ranges from three to 21 months, you won't be charged any interest on your purchases. This can be beneficial if you want to spread the cost of an expensive purchase over a longer period.
However, it's important to note that you need to repay the debt before the promotional period ends to fully benefit from the 0% deal. If you have any remaining balance after the promotional period, you will be charged interest on that balance at the card's standard APR, which is typically around 24%.
Is an interest-free purchase credit card better than a personal loan?
Whether a 0% purchase credit card or a personal loan is better for you depends on your specific needs and circ*mstances. Here are some key differences to consider:
Credit card:
- You can borrow smaller amounts at competitive rates.
- Repayments are flexible, and you only need to make the minimum repayment each month.
- You can avoid paying interest for a number of months on a 0% purchase deal.
- You get revolving credit, meaning you can spend what you pay back.
Personal loan:
- The smallest amount you can borrow is usually £3,000, and the rates may not be as competitive for smaller amounts.
- Repayments are fixed, and you need to make fixed monthly repayments for the agreed loan term.
- You will have to pay interest on the money you borrow, even on the cheapest personal loans.
- You can't spend any more than you originally borrow.
Consider your borrowing needs, repayment preferences, and the amount you need to borrow when deciding between a 0% purchase credit card and a personal loan.
How to use a 0% purchase credit card effectively
If you decide to take advantage of a 0% purchase credit card, here are some golden rules to help you make the most of the deal:
- Only borrow what you need: It's important to borrow only what you can afford to pay back. Even if you have a high credit limit, avoid maxing out your borrowing if you may struggle to clear the balance after the 0% period.
- Make at least the minimum repayment each month: Even if you plan to delay repaying the bulk of what you borrow, ensure you make at least the minimum repayment on time each month. Failure to do so may result in a late payment fee and could potentially void the 0% deal.
- Have a plan to repay the debt: To fully benefit from the 0% purchase credit card, aim to have no remaining debt when the interest-free period ends. Divide the total amount you've spent on your credit card by the number of months the 0% deal lasts for, and set up a direct debit to pay off that amount each month.
- Avoid cash withdrawals: It's best to avoid withdrawing cash using your 0% purchase credit card. Cash withdrawals usually incur interest charges from the day you take the money out, and the interest rate is typically higher than for purchases.
By following these guidelines, you can effectively manage your 0% purchase credit card and make the most of the interest-free period.
I hope this information helps you understand how 0% purchase credit cards work and how to use them effectively. If you have any further questions, feel free to ask!
