0% purchase credit cards offer a specified period during which you will not be charged any interest on your purchases, provided you meet the minimum payment requirements. This 0% interest period usually ranges from a few months to over a year.
If you are planning to make significant purchases, this type of card can be particularly advantageous since they allow you to spread the cost of your spending without the added burden of interest charges. However, it's important to plan ahead for how you'll pay off the balance before the interest-free period ends to avoid high standard interest rates.
"When used correctly, introductory 0% purchase rates can save money in the short-term on credit card interest for eligible purchases. Weigh up how long the interest-free period lasts, and don't forget to consider what the rate reverts to when the introductory period ends."
David Boyd
CEO at Credit Card Compare
How 0% purchase credit cards work
When you use a 0% purchase credit card for your transactions, the card issuer will not charge interest on the purchases you make within the promotional 0% period. During that time, it is essential to make at least the minimum repayment amount each month.
Watch closely and clear the balance before the end of the promotional period to avoid accruing substantial interest charges. After the promotional period expires, any remaining balance will be subject to the card's standard variable interest rate.
What to know before applying for a 0% purchase credit card
- Promotional period length: Consider the duration of the 0% interest period and ensure it aligns with your repayment timeframe.
- Interest rates: Be aware of the standard variable interest rate that applies or reverts back to at the end of the promotional period.
- Minimum repayment: Ensure you meet the minimum repayment requirements every month during this time to avoid penalties.
- Annual fees: Check for any annual fees associated with the credit card.
- Eligibility criteria: Understand the eligibility requirements and any additional perks or rewards offered.
How to benefit the most from 0% purchase credit cards
- Set a repayment plan: Plan your repayments in such a way to clear the balance before the end of the promotional period. This helps you avoid high-interest charges.
- Avoid additional purchases: Focus on clearing the existing balance rather than making new purchases to maximise the interest-free period.
- Monitor your spending: Keep track of your purchases and payments to stay within your budget and avoid unnecessary expenses.
- Utilise budgeting tools: Use budgeting apps or tools to track your spending and manage your finances effectively.
Methodology for our 0% purchase credit card comparison
We considered the following attributes and associated metadata when ranking our comparison of credit cards with a 0% purchase introductory offer.
- Annual fee initial year: The card's annual fee in the first year. The lower it is, the better.
- Annual fee ongoing: The annual fee charged each year after the first year. Lower is better.
- Apple Pay enabled: Whether the card can be added to Apple Pay for contactless payments. Being able to is considered beneficial.
- Balance transfer offer: If an introductory balance transfer offer is available, what the interest rate is, how long the introductory offer lasts, and what the balance transfer fee is (if there is one). A lower rate for longer is considered better.
- Balance transfer from personal loan: If balances from personal loans can be transferred to the card in addition to regular credit card balance transfers. Being able to do so provides more flexibility.
- Balance transfer limit: The maximum amount that can be transferred to the card. Higher is better.
- Card type: Whether the card is an American Express, Mastercard, Visa, etc. since this can affect acceptance.
- Foreign exchange fee: Surcharges converted currency transactions attract when made overseas or while shopping online from an overseas store. The lower the better.
- Interest-free period: How many interest-free days are on offer from statement close, if the balance is paid in full. More is better.
- Introductory purchase rate: The interest rate on purchases for a set period and how long it lasts before reverting to the ongoing rate on purchases.
- Late payment fee: How much will be charged if the minimum repayment is not made by the due date each month. Lower the late payment fee, the better it is.
- Maximum credit limit: How much credit can be extended on the card.
- Minimum credit limit: Lowest credit limit amount that may be offered, even to applicants with excellent scores.
- Minimum income required: How much income is required to be eligible. A lower amount makes the card accessible to people with relatively low monthly incomes.
- Purchase rate ongoing: The interest rate charged on purchases after any introductory offer period ends. Lower is better.
- Rewards program: Whether the card earns points, cashback, etc. and details around the linked rewards program, redemption options, etc.
- Samsung Pay enabled: If the card can be added to Samsung Pay digital wallet for contactless payments. Being able to is considered beneficial.
- Sign-up bonus: Whether the card offers a welcome bonus of points, cashback, etc. and the minimum criteria to trigger it.
Our rankings may not reflect what matters most to you. Be sure to compare key rates, fees, and features against your own financial priorities before deciding.
