These types of cards can be quite useful for those who wish to enjoy interest-free purchases for a certain period of time (usually between twelve and eighteen months). They can be particularly beneficial if interest rates are extremely high and a great deal of money can potentially be saved. Of course, these offers are generally used as an introduction to a specific credit card company. While the ability to save a great deal of money within the allotted time is tempting, there are a few considerations to keep in mind.

The Types of Zero Per Cent Purchase Credit Cards

Card APR Features

Santander Everyday Credit Card

18.9%

  • 0% for 18 months on purchases1 from date of account opening
  • 0% for 9 months on balance transfers from date of account opening (3% fee applies, minimum £5)
  • No annual fee
More info

Nationwide 15 month Purchase Credit Card

17.9%

  • 0% on purchases for 15 months.
  • Access to exclusive rewards.
  • Commission- free allowance.
More info

Lloyds Bank Platinum Purchase Card

18.9%

  • 0% interest on purchases for up to 24 months
  • 0% interest for the first 13 months on balances transferred in the first 90 days.
  • Low standard balance transfer fee of 2.5% applies on balances transferred within the first 90 days of opening the account, 3% fee applies thereafter.
More info

Sainsbury’s Nectar Purchase Credit Card

18.9%

  • 0% interest on balance transfers for the first 18 months from account opening (3% balance transfer fee applies)
  • 0% interest on purchases for the first 25 months from account opening
  • No monthly or annual fee
More info

Barclaycard Platinum Purchase 20 month Balance Transfer

18.9%

  • 0% interest on purchases and balance transfers for 20 months from opening
  • A fee of 3% will be applied, then reduced to 2.49% by a refund (terms and conditions apply)
More info

TSB Platinum Purchase Card

18.9%

  • 0% interest on purchases for the first 20 months.
  • 0% interest for up to 20 months on balances transferred in the first 90 days.
  • 2.95% fee for balance transfers made in the first 90 days.
More info

The main differences between the type of card offered will be the maximum spending limit and the amount of time that interest-free purchases are valid for. The other primary variable will be if these cards are also associated with rewards such as frequent flyer miles, a “points” system or the ability to receive free gifts once one has purchased a certain amount.

Of course, different lending companies will offer different annual percentage rates once the promotional period is over. This will be determined by the lender in question. While these cards are designed mainly for personal use, it should be noted that a small majority of companies will offer the same promotions for business purposes.

Things to Take Into Consideration

It is critical to appreciate that these cards will not be offered to everyone. In essence, the lender will need to know that the borrower is not a significant financial risk. Thus, the ability to enjoy zero per cent interest is generally only available to those with a very good credit history.

Another viable concern is what the interest rates will be once the time period expires. This is important to keep in mind, for it is frequently the case that companies will charge higher figures than those which would be available with a normal credit card. Along these same lines, some consumers will be tempted to make many purchases. Should the credit limit be exceeded, a rolling debt can be the end result. This will incur damage to one’s credit score.

How to Find the Best Deal

One of the first steps is to determine if there is any “fine print” associated with a contract before entering into an agreement. Other questions to ask are:

  • Is there an inclusive rewards programme?
  • What are the annual fees?
  • How is the company viewed by other consumers? Is the lender considered to be reputable?

These are some of the basic metrics associated with such a credit card promotion. Appreciating these facts will enable one to make the most informed decision.