Purchase Credit Cards
Finding a 0% interest purchase credit card will allow you to buy items and then pay them off over a period of time with no interest.
Compared to the average interest rate of 18% a purchase credit card could save you £180 a year in interest on a £1000 bill.
Watch out! Four rules for all credit cards
- Don’t use your credit card to withdraw cash unless you have to. Your credit card is VERY likely to have a high interest rate on any cash that you take out which you will start getting charged from the moment you withdraw it. There is also likely to be a withdrawal fee (we’ve only found a couple with no fees at all). These rates won’t be affected by another deal you might have
- Look out for annual fees. The fees tend to be charged so you can access higher rates of cashback, airmiles or similar. If you’re not getting a superb deal that makes up for the fee then the cards are not worth applying for
- Be careful! A lot of 0% or low interest credit cards will automatically set your direct debit amount very low each month so that at the end of the interest free period you end up with a large outstanding balance
- If you don’t make the minimum monthly repayment then you may lose your deal
The inside track
- If you also want to transfer your debt and pay no interest whilst you pay that off have a look at this section to the 0% interest balance transfer and purchase credit cards online
- Or if you are a BIG SPENDER confident that you can make your repayments then have a look at the reward, airmile and cashback credit cards online
- Buy on cashback sites to save even more on your purchases