Used correctly, a credit card can be a handy tool to help manage your finances, but with so many different types of credit cards it is important to choose the right one for your needs. If you are looking to reduce the amount of interest you are currently paying on existing cards, or you are planning a large purchase, an interest-free or 0% APR credit card could be a good option.
APR stands for annual percentage rate and a 0% APR credit card allows you to avoid paying interest on balance transfers or purchases or both for a set amount of time. We explain APR in more detail in our article 'Interest rates explained'.
What is an interest-free credit card?
A 0% purchase credit card allows you to spread the cost of your spending interest-free over a set number of months. This can provide some breathing space if you have a large purchase to pay for, such as a holiday. You can pay off the amount you owe in monthly instalments without paying interest on top. Once the 0% deal ends you will start paying interest, unless you have cleared your balance. Interest may also still be charged on cash withdrawals, balance transfers and transactions made abroad.
A 0% balance transfer credit card, on the other hand, allows you to transfer one or more credit card balances across and avoid paying interest on your new card for a number of months. If you were paying interest on your old balances, this process can save you a decent sum of money. The downside is you will often have to pay a transfer fee which is added to your new balance. Some credit cards offer shorter 0% periods in return for a lower transfer fee, so it can be worth weighing up how long you need to pay off your debt to see which is the cheaper option for you. Only those with good credit ratings will be offered the best balance transfer deals. If your credit rating is low, you may be offered a shorter interest-free period, a higher transfer fee, or your application could be rejected.
Once the 0% deal ends, you will start paying interest on your new card, unless you have paid off the balance in full or you carry out another balance transfer. Many balance transfer 0% deals also only apply to transfers carried out in a certain period of time, ie. 60 days, so check this before you apply. It is also best to avoid spending on a balance transfer card, although some credit card companies offer a dual credit card with a 0% interest rate for both balance transfers and spending.
Which interest-free credit card is best for you?
Money to the Masses uses Creditec*, an online comparison service that enables you to find credit card deals tailored to you without affecting your credit score. You will want to compare as many different options as possible before you get a new credit card, so it is a good idea to do a fast online comparison. With only a few basic details, the Creditec tool will build a personalised list of credit cards suited to your needs to help you navigate the huge number of options out there. You can then pick the result that suits you best. None of this will affect your credit score as the eligibility process uses a soft credit check. Click here to start your comparison*.
Compare the best 0% purchase credit cards - November 2024
The table below shows the top deals for 0% purchase credit cards:
| Provider | Interest-free period | APR (after interest-free period) | Rewards | Minimum repayment |
| Barclaycard Platinum Credit Card - Check eligibility | Up to 21 months | 24.90% | Get up to five months of Apple Music, Apple TV+, Apple News+ and Apple Arcade for free | Greater of 2% of balance plus interest or £5 |
| HSBC Purchase Plus Credit Card | Up to 20 months | 24.90% | £25 cashback when you spend £100+ within 60 days | Greater of 1% of balance plus fees and interest, 2.5% of the full amount you owe, or £5 |
| M&S Bank Purchase Plus Credit Card - Check eligibility* | Up to 20 months | 24.90% | Collect points that can be converted to M&S vouchers - 1 point for every £1 spent in M&S and 1 point for every £5 spent elsewhere | Greater of 1% of balance plus fees and interest, 2.5% of the full amount you owe, or £5 |
| Natwest Purchase & Balance Transfer Credit Card | 19 months | 24.90% | None | Greater of 1% of balance plus interest or £5 |
Barclaycard Platinum Credit Card - Check eligibility
- 0% interest for up to 21 months (some could get as few as 10 months) on purchases and 20 months for balance transfers (3.45% transfer fee applies)
- Interest rate currently 24.90% APR after interest-free period
- 0% interest on balance transfers made within 60 days of account opening, interest rate currently 24.90% APR after interest-free period
- No annual fee
- Get up to five months of Apple Music, Apple TV+, Apple News+ and Apple Arcade for free
Read more on the Barclaycard website.
HSBC Purchase Plus Credit Card
- 0% Interest on purchases for up to 20 months
- 0% Interest on balance transfers for 17 months if made within 60 days of account opening (3.49% fee, min £5)
- Interest rate currently 24.90% APR after interest-free period
- No annual fee
Read more on the HSBC website.
M&S Bank Purchase Plus Credit Card - Check eligibility*
- 0% Interest on purchases for up to 20 months
- 0% Interest on balance transfers for 12 months if made within 90 days of account opening (3.49% fee, min £5)
- Interest rate currently 24.90% APR after interest-free period
- No annual fee
- Collect points that can be converted to M&S vouchers - 1 point for every £1 spent in M&S and 1 point for every £5 spent elsewhere
Read more on the M&S Bank website.
Natwest Purchase & Balance Transfer Credit Card
- 0% interest on purchases for 19 months, which all successful applicants will get
- 0% interest on balance transfers for 19 months if made within three months of account opening (2.99% fee applies)
- Interest rate currently 24.90% APR after interest-free period
- No annual fee
Read more on the Natwest website.
Compare the best 0% balance transfer credit cards - November 2024
The table below shows our top-3 deals on 0% balance transfer cards:
| Name of card | Interest-free period | Representative APR (variable) | Balance Transfer fee | Other features |
| HSBC Balance Transfer Credit Card | Up to 30 months | 24.90% | 3.49% | 0% interest on purchases for 3 months |
| Virgin Money Balance Transfer Credit Card - Check eligibility | 29 months | 24.90% | 3.45% | None |
| NatWest Balance Transfer Credit Card | 13 months | 24.90% | No fee | 0% interest on purchases for the first 3 months |
HSBC Balance Transfer Credit Card
- Representative APR: 24.90% variable
- Interest-free period: Up to 30 months
- Transfer fee: 3.49% fee, min £5
- Annual fee: No annual fee
Virgin Money Balance Transfer Credit Card - Check eligibility
- Representative APR: 24.90% variable
- Interest-free period: 29 months
- Transfer fee: 3.45%
- Annual fee: No annual fee
Read more on the Virgin Money website.
Natwest Balance Transfer Credit Card
- Representative APR: 24.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable)
- Interest-free period: 13 months
- Transfer fee: No transfer fee (on transfers in first 3 months)
- Annual fee: No annual fee
Read more on the Natwest website.
How to make the most of a 0% credit card
The key to making the most of a 0% interest credit card is to pay off the balance before the interest-free period ends. Even with the very best balance transfer credit cards and 0% purchase credit cards, the rate of interest will rise sharply once you are no longer on your initial deal. This means that you will need to plan out how you will pay off the balance over the number of months that your debt will be interest free. Alternatively, you could try and move any leftover balance to a new balance transfer credit card at the end of the offer. This can be a useful way to avoid the new interest charges, but the best option is plan a route to becoming debt-free and stick to it.
Things to consider before getting a 0% credit card
Before applying for a 0% credit card, you should think about your options carefully. It is worth considering:
- What do you need the credit for? If it is for a large purchase, is this something you could live without?
- If you are applying for a 0% balance transfer card, do you know what the transfer fee is? Could you save money with a shorter 0% deal but lower fee?
- Will you be able to afford the monthly repayments? Keep in mind the minimum monthly repayment set by your provider is likely to be low - it is always best to pay more than that if you can
- Do you know how much interest you’ll be charged at the end of the 0% period and do you have a plan in place for when that happens?
- Have you checked your credit score? A good score means you are more likely to be accepted for the top deals.
Pros and cons of a 0% credit card
Here is a summary of the key advantages and disadvantages of 0% interest credit cards:
Pros of a 0% credit card
- No interest for a set period
- Spread the cost of large purchases without paying interest
- Reduce the interest on an existing balance by transferring it to a 0% balance transfer credit card
- Fee-free options available
Cons of a 0% credit card
- Once your 0% introductory period is over, you will be charged interest on your remaining balance
- You may not be able to continue to spend on a balance transfer credit card
- You will need to pay a balance transfer fee to get the longest 0% interest periods
- A late payment could mean your interest-free period is cut short
Alternatives to a 0% credit card
A 0% credit card may not be the perfect borrowing option for your situation. It is important to consider whether it would be cheaper and easier to take out a personal loan instead of using a credit card. We explain more in our article 'Is it better to get a credit card or a personal loan?'.
Taking out a new credit card may also be the wrong move if you are already struggling with your existing debt. Adding on new debt may make the issue worse and lead to missed payments that could harm your borrowing power in the future. If you are worried about your debt, you can get free advice from independent experts who can help you renegotiate with your creditors and build a plan to get back on track. We go over the options available in our article 'Where to get free debt advice'.
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