How to Compare 0% Balance Transfer & Purchase Credit Cards

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0% balance transfer and purchase credit cards allow you to move any existing credit card debts, which you may be paying hefty interest charges on, to a 0% interest rate - lasting for an introductory period, allowing your payments to really take chunks off your principal balance.

0% balance transfer and purchase credit cards differ from normal 0% balance transfer credit cards because they are also suitable for purchase spending - this is because they offer the same 0% deal on your purchases too.

These cards are best for...

0% balance transfer and purchase credit cards are best suited for anyone who wants to move existing credit card debts to a 0% deal and also spend on the same card.

0% balance transfer and purchase credit cards are really the only credit cards suitable for both balance transferring and purchase spending.

If you do want to do both, make absolutely sure the 0% credit card you're taking out offers 0% interest rates on both balance transfers and purchases for the same length of time!

These cards are not suitable for...

- Sole balance transfers
If you only want to transfer a balance, you'd be better of choosing a 0% balance transfer credit card, which can offer longer 0% periods on balance transfers, up to 15 months.

- Sole purchase spending
If you only want to make use a 0% period on purchases, you should choose a 0% purchase credit card, where you can find longer 0% purchase offers, up to 12 months.

- Cash withdrawals
Very few credit cards are really all that well suited to cash withdrawals, and where there are some exceptions, they won't be found near any 0% offers.

Cash withdrawals can literally ruin any money saving benefits of your 0% offer.

Not only will they incur handling fees and higher rates of interest, but they will become 'trapped' as payments made to your card will always go to 0% balances first - leaving any cash withdrawals to languish in high interest charges while you struggle to repay your 0% debts.

Knowing what's on offer...

Knowing exactly what is on offer can mean the difference between running rings around your bank manager and saving considerable amounts of cash, or, like most credit card users, being caught out by sneaky terms and conditions.

- Save yourself money
Undoubtedly, you're bound to be wanting a 0% balance transfer and purchase credit card for the sole reason of saving money - and maybe also to help spread the load a little bit.

Used wisely, these cards really can save you money.

However, as with any financial product, it's always important to fully understand what is on offer and what isn't on offer – so you know what to look for when choosing a 0% balance transfer and purchase credit card, and also how to use it once you've received your plastic through the post.

- What makes these cards suitable for balance transfers and spending?
0% balance transfer and purchase credit cards are suitable to use for both because they offer the same 0% introductory rate on both your transferred balance and your new purchases for the same length of time.

- Why shouldn't I use a credit card offering 0% balance transfers for 12 months, and 0% on purchases for 3 months?
Whilst in theory, it might be possible to repay your purchases before the end of the purchase period, so only a balance transfer remains on your account once the purchase period has ended, this is not always possible in practice.

Credit cards will allocate your payments to lower rate or 0% debts first, making you repay these cheap balances first, before your payments are even allowed to touch the balances your credit card issuer is making money from.

Certain credit card companies have even added to their terms and conditions, that when a payment is made to the card, it will first go to repaying the longest 0% balance first - making it impossible to repay purchases on a shorter 0% period - so when this shorter 0% purchase period ends, your purchases will jump up to the standard interest rate and start accruing interest charges, while you are still trying to repay your balance transfer.

- Balance transfers and purchase spending only
Most credit cards, although they may seem like they offer multi-tasking features, are generally only suitable for one type of usage.

0% balance transfer and purchase credit cards are a slight exception to the rule, however they are only suitable for transferring a balance to the card and purchase spending.

0% balance transfer and purchase credit cards are therefore not suitable for other credit card uses, for example, cash advances - including withdrawing cash at an ATM machine, getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques, or gambling transactions.

While you can make a cash transaction on one of these cards, you will pay the price for it, with cash transactions incurring handling fees and higher interest charges, plus due to the allocation of payments, you'll be unable to repay these transactions until you have first repaid all of your 0% balances first.

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Compare 0% balance transfer and purchase credit cards