In the current economic landscape, managing finances efficiently is crucial for maintaining stability and ensuring financial security. One of the most effective tools available to help consumers manage their expenses and reduce debt is the 0% interest credit card.
These cards offer an interest-free period on purchases or balance transfers, allowing you to spread the cost of large purchases or consolidate existing debt without paying any interest during the promotional period.
This guide introduces you to the best 0% interest credit cards in the UK, explaining how they work, what factors to consider when choosing one, and the risks and benefits. With careful management, these cards can help you save significantly, giving you greater control over your financial situation.
What is a 0% Interest Credit Card?
A 0% interest credit card is a type of credit card that offers an interest-free period on purchases or balance transfers for a set number of months. During this promotional period, no interest will be charged on the balance or on purchases made, giving you time to pay down debt or manage expenses without the worry of accruing interest.
After the interest-free period ends, the card reverts to its standard APR, which can be quite high. Therefore, it’s crucial to pay off as much of the balance as possible during the 0% interest period to avoid large interest charges later.
Key Advantages:
- Interest-Free Purchases: You can make large purchases and spread the cost over several months without paying any interest.
- Balance Transfers: You can transfer your existing credit card debt to a new 0% interest card to save on interest and pay down the balance faster.
- Financial Flexibility: These cards provide flexibility in managing both short-term and long-term expenses, giving you breathing room to sort out finances without immediate pressure from interest rates.
What are the Key Factors to Consider When Choosing a 0% Interest Credit Card?
Selecting the right 0% interest credit card involves more than just finding the longest interest-free period. Here are the key factors to consider when evaluating your options:
1. Interest-Free Periods
Some cards focus on offering 0% interest on purchases, while others may offer 0% on balance transfers. Consider which type of interest-free offer suits your needs. For example, if you’re planning a large purchase, a card offering 0% interest on purchases is ideal. If you’re consolidating debt, a card with a long 0% balance transfer period will be more beneficial.
2. Introductory APR Offers
Pay attention to the length of the introductory offer. While some cards offer 0% APR for up to two years, others may only provide six to twelve months. A longer 0% period gives you more time to pay off your balance without incurring interest, which can help if you’re managing a large balance.
3. Additional Fees and Charges
Look out for fees that may impact your overall savings. Some 0% interest cards come with balance transfer fees—typically ranging between 1% and 3% of the amount transferred. There may also be annual fees, foreign transaction fees, or late payment penalties. These can eat into your savings if not considered carefully.
4. Cashback, Rewards, and Perks
Some 0% interest credit cards come with additional perks, such as cashback on purchases or reward points that can be redeemed for goods or services. If you’re someone who spends frequently on a credit card, these benefits can add up, making a rewards card a smart choice for maximising value.
How to Maximize Savings with 0% Interest Credit Cards?
While a 0% interest credit card can save you a significant amount of money, how you use it will determine the extent of your savings. Here are some tips for getting the most out of your interest-free card:
1. Pay Off the Balance Within the Interest-Free Period
The best way to save money with a 0% interest card is to pay off the entire balance before the interest-free period ends. Once the promotional period is over, the standard APR kicks in, which can sometimes be upwards of 20%. If you’ve not cleared your balance, you’ll be charged interest on the remaining amount.
2. Use Balance Transfers to Save on Existing Debt
If you already have credit card debt at a higher interest rate, transferring that balance to a 0% interest card can save you hundreds of pounds in interest. Balance transfer cards typically charge a small fee (around 1-3% of the transferred amount), but this is usually much lower than paying interest at 18-22% APR on a standard card.
3. Avoid Late Fees and Extra Charges
Make sure to always pay at least the minimum payment by the due date each month. Missing a payment can result in losing your 0% interest offer and being charged a high APR. Set up a direct debit to ensure you never miss a payment.
What are the Potential Risks of Using 0% Interest Credit Cards?
While 0% interest cards can be incredibly useful, there are potential downsides if they aren’t managed correctly. It’s important to be aware of the following risks:
1. The End of the Introductory Period
After the 0% interest period ends, any remaining balance will start to accrue interest at the card’s standard rate, which can be much higher than you expect. If you haven’t cleared your balance, this can lead to unexpected financial pressure, especially if the balance is significant.
2. Importance of Timely Repayments
Missing a payment can result in losing your promotional interest rate, which can dramatically increase the cost of your credit card. Additionally, late payments may incur fees and can negatively affect your credit score.
3. Common Pitfalls
One of the most common pitfalls of 0% interest credit cards is overspending. The absence of immediate interest charges can lead to the temptation to spend more than you can afford to repay within the interest-free period. Also, balance transfers can provide relief from high-interest debt, but without a repayment plan, you risk accumulating even more debt.
Top 9 0% Interest Credit Cards in the UK
Now that we’ve covered the basics of 0% interest cards and how to use them effectively, here’s a look at some of the best options available in the UK.
1. Barclaycard Platinum Purchase and Balance Transfer Card
- 0% interest period: Up to 21 months on both purchases and balance transfers.
- Transfer fee: 3.45% on each balance transfer made within 60 days of opening the account.
- Representative APR: 24.9% APR (variable) once the interest-free period ends.
- Key benefits: A versatile credit card offering long interest-free periods on both purchases and balance transfers, making it a great all-round option for managing debt or spreading the cost of large purchases.
Additional details:
- The 0% purchase offer excludes foreign currency and cash-like transactions.
- New customers can benefit from 0% interest for up to 21 months on purchases, provided they spend responsibly and repay what they can afford.
- Terms apply, so it’s important to understand the specifics of how the 0% offer works and ensure that transfers are made within the first 60 days to benefit from the balance transfer offer.
2. NatWest Purchase and Balance Transfer Card
- 0% interest period: Up to 19 months on both purchases and balance transfers.
- Transfer fee: 2.99% on balance transfers made within the first 3 months.
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: A solid card offering a competitive 19-month interest-free period for both purchases and balance transfers. It’s well-suited for those seeking a manageable solution for everyday spending or consolidating existing debt.
Additional details:
- No annual fee makes this card an attractive option for those looking for simple savings.
- The 0% purchase period begins as soon as the account is opened, making it a flexible choice for new purchases worldwide at Mastercard® locations both in-store and online.
- Once the 19-month promotional period ends, standard rates will apply to any remaining balances or new purchases, so it’s crucial to manage your repayments within that time frame.
3. MBNA Purchase Credit Card
- 0% interest period: 27 months on balance transfers (with a 3.49% transfer fee) and 3 months on purchases.
- Transfer fee: 3.49% on balance transfers (minimum £5 fee).
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: The MBNA Purchase Credit Card offers a lengthy interest-free period for balance transfers and a shorter period for purchases. It’s particularly useful for consolidating debt while also providing some relief for short-term purchases.
Additional details:
- The 0% interest on purchases is available for the first 3 months after opening the account, which is great for those planning immediate purchases.
- After the 27-month promotional period for balance transfers or 3-month period for purchases ends, a standard interest rate of 24.9% p.a. (variable) will apply.
- Ideal for those looking to transfer balances with a manageable fee and clear the debt within the long 0% period.
4. M&S Purchase Plus Offer
- 0% interest period: Up to 20 months on purchases and 12 months on balance transfers (with a 3.49% transfer fee).
- Transfer fee: 3.49% on balance transfers made within 90 days (minimum £5).
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: The M&S Purchase Plus Credit Card offers a combination of 0% interest on purchases and balance transfers, along with the ability to earn M&S vouchers. This makes it an excellent option for regular M&S shoppers who want to spread out the cost of purchases.
Additional details:
- You can shop using the M&S Credit Card wherever Mastercard is accepted, making it versatile for both online and in-store purchases.
- The card is ideal for those who want to earn rewards while taking advantage of the 0% interest periods. However, the 0% balance transfer offer is only available for transfers made within the first 90 days.
- After the promotional periods end, a standard purchase rate of 24.9% p.a. (variable) will apply, so it’s important to manage the repayments within the interest-free period.
5. HSBC Purchase Credit Card
- 0% interest period: Up to 20 months on purchases and 17 months on balance transfers (with a 3.49% transfer fee).
- Transfer fee: 3.49% on balance transfers made within the first 60 days (minimum £5).
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: This card offers HSBC’s longest 0% interest-free period on purchases, making it ideal for spreading out the cost of significant spending. It also offers a competitive balance transfer option for debt consolidation within the first 60 days.
Additional details:
- The 0% interest on purchases lasts for up to 20 months from the date of account opening, while balance transfers must be made within 60 days to qualify for the 17-month interest-free period.
- No annual fee, which adds to the card’s appeal for everyday spending.
- After the promotional periods end, a standard purchase rate of 24.9% p.a. (variable) will apply, making it important to clear the balance before the interest-free offer ends.
6. Santander Everyday Long-Term Credit Card
- 0% interest period: Up to 26 months on balance transfers and 3 months on purchases.
- Transfer fee: 3% on balance transfers (minimum £5).
- Representative APR: 23.9% APR (variable) after the promotional period.
- Key benefits: With a lengthy 26-month interest-free period for balance transfers, this card is an excellent choice for those looking to consolidate multiple debts and save on interest. It also offers 0% interest on purchases for the first 3 months, helping with short-term spending.
Additional details:
- No monthly account fee makes this card cost-effective for long-term use.
- To apply, you must be at least 18, a UK resident, and have an annual income of £10,500 or more.
- After the interest-free period ends, a standard purchase rate of 23.9% p.a. (variable) will apply, so it’s crucial to plan repayments within the promotional period.
7. Virgin Money Balance Transfer Card
- 0% interest period: Up to 29 months on balance transfers.
- Transfer fee: Fees apply (specific terms vary based on the offer at the time of application).
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: This card stands out for its long 29-month interest-free period on balance transfers, making it an excellent option for consolidating existing credit card debt and paying it off interest-free over an extended period.
Additional details:
- Designed for those seeking to reduce debt without interest piling up, this card is perfect for transferring large balances and managing them more effectively.
- After the 29-month promotional period ends, a standard purchase rate of 24.9% p.a. (variable) applies, so it’s important to ensure the balance is paid off within the interest-free timeframe.
8. Virgin Money All Round Card
- 0% interest period: Combines 0% interest offers for both purchases and balance transfers (specific duration varies depending on the offer).
- Transfer fee: Fees apply (check current terms at the time of application).
- Representative APR: 24.9% APR (variable) after the promotional period.
- Key benefits: As an all-in-one credit card, this option provides 0% interest on both purchases and balance transfers, offering flexibility for those who want to manage both everyday spending and existing debt with a single card.
Additional details:
- Ideal for those seeking a versatile card that caters to both purchasing needs and balance transfers, offering interest-free periods for both.
- After the promotional periods end, a standard purchase rate of 24.9% p.a. (variable) will apply, so make sure to plan repayments accordingly to avoid interest charges.
9. Santander All in One Credit Card
- 0% interest period: 15 months on both purchases and balance transfers, with no balance transfer fee.
- Transfer fee: None on balance transfers within the 0% interest period.
- Representative APR: 29.8% APR (variable), with a 23.9% p.a. (variable) purchase rate after the promotional period.
- Key benefits: This card offers a combination of 0% interest on purchases and balance transfers, along with no foreign exchange fees on overseas purchases and 0.5% cashback on all purchases (up to £10 per month). It’s a great all-rounder card for both spending and travel.
Additional details:
- A £3 monthly fee applies, but the card’s cashback and fee-free foreign transactions can offset this cost for frequent users.
- With 0% interest on purchases and balance transfers for 15 months, plus the added benefit of cashback, this card provides a flexible option for everyday spending, debt consolidation, and travel abroad.
- After the 15-month promotional period, the standard APR of 29.8% (variable) will apply.
| Credit Card | 0% Interest Period (Purchases) | 0% Interest Period (Balance Transfers) | Balance Transfer Fee | Representative APR (Variable) | Key Benefits |
| Barclaycard Platinum Purchase and Balance Transfer Card | Up to 21 months | Up to 21 months | 3.45% | 24.90% | Long 0% period for purchases and balance transfers, versatile option for debt and spending |
| NatWest Purchase and Balance Transfer Card | Up to 19 months | Up to 19 months | 2.99% | 24.90% | Competitive 0% period for purchases and balance transfers, no annual fee |
| MBNA Purchase Credit Card | 3 months | 27 months | 3.49% | 24.90% | Long 0% period for balance transfers, ideal for short-term purchases |
| M&S Purchase Plus Offer | Up to 20 months | Up to 12 months | 3.49% | 24.90% | Earn M&S vouchers, long 0% period on purchases, good for loyal M&S shoppers |
| HSBC Purchase Credit Card | Up to 20 months | Up to 17 months | 3.49% | 24.90% | No annual fee, longest interest-free period for purchases from HSBC |
| Santander Everyday Long-Term Credit Card | 3 months | Up to 26 months | 3% | 23.90% | Excellent for balance transfers with long 0% period, no monthly fee |
| Virgin Money Balance Transfer Card | N/A | Up to 29 months | Fees vary | 24.90% | Longest balance transfer period, great for consolidating large debts |
| Virgin Money All Round Card | Offers for both purchases and balance transfers | Offers for both purchases and balance transfers | Fees vary | 24.90% | Flexible all-in-one card for purchases and balance transfers |
| Santander All in One Credit Card | 15 months | 15 months | None | 29.80% | No balance transfer fee, cashback rewards, no foreign exchange fees for travel |
Conclusion
When it comes to managing your finances, a 0% interest credit card can be an invaluable tool for spreading the cost of purchases or consolidating debt. The cards listed above offer a range of benefits, from long interest-free periods to cashback and rewards.
However, it’s important to choose a card that aligns with your financial goals. Whether you’re planning a major purchase, looking to consolidate existing debt, or simply wanting to spread costs, there’s a 0% interest credit card that can help you save money.
Before applying, take time to compare the interest-free periods, balance transfer fees, and any annual charges. Also, consider how you’ll manage repayments to make the most of the interest-free period. By selecting the right card and using it wisely, you can maximise your savings and maintain greater financial control.
FAQ Section
Which 0% interest credit card offers the longest balance transfer period?
The Virgin Money Balance Transfer Card offers one of the longest balance transfer periods, providing up to 29 months of 0% interest on balance transfers. This makes it a top choice for those looking to consolidate debt and pay it off over a long, interest-free period.
Can I transfer multiple balances onto a 0% interest credit card?
Yes, many cards, such as the Santander Everyday Long-Term Credit Card, allow you to transfer multiple balances from different cards. This is ideal for consolidating debt into one manageable monthly payment and taking advantage of the 0% interest period to reduce your debt faster.
What happens if I don’t pay off my balance before the 0% interest period ends?
Once the 0% interest period ends, the remaining balance will start accruing interest at the card’s standard APR, which can range from 23.9% to 29.8% APR (variable) depending on the card. It’s important to pay off as much of the balance as possible during the interest-free period to avoid high-interest charges later.
Do 0% interest credit cards come with any hidden fees?
While many 0% interest credit cards do not have annual fees, some, like the Santander All in One Credit Card, charge a £3 monthly fee. Additionally, balance transfers typically come with a fee (usually around 3%, as seen with the HSBC Purchase Credit Card and Santander Everyday Long-Term Credit Card). Always check the terms and conditions for any balance transfer fees, foreign transaction fees, or late payment charges.
Are there any 0% interest credit cards with no balance transfer fees?
Yes, the Santander All in One Credit Card offers no balance transfer fees for up to 15 months, which is a great benefit for those looking to consolidate debt without the extra cost of transferring balances.
Are there any 0% interest credit cards that offer cashback?
Yes, the Santander All in One Credit Card offers 0.5% cashback on all purchases, with a monthly cap of £10. This card combines the benefits of cashback rewards with the convenience of 0% interest on purchases and balance transfers, making it a versatile option for everyday use.
Do any 0% interest credit cards waive foreign transaction fees?
Yes, the Santander All in One Credit Card has no foreign exchange fees on overseas purchases, making it a great choice for frequent travelers who want to save on foreign transactions while enjoying 0% interest on purchases for the first 15 months.
