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The deal
0% interest rates on purchases for an introductory period of time.
What do I get?
Benefit from zero interest charges on new spending made with a 0% purchase credit card.
The 0% interest purchase period will last from 6 months to 12 months – depending upon the card chosen. During this time balances resulting from buying goods or services from retailers or companies can remain on the credit card without incurring interest charges.
How do I use it?
0% purchase deals can be used as a 'buy now, pay later' method for must-have purchases or large items you want to spread the cost of – without costing you a penny in interest.
If you want to be extra savvy, you can use 0% purchase deals to 'stooze' – use the card for all your everday spending, meanwhile save your salary in a high interest savings account – just before the 0% period ends, repay your card debt with your savings and pocket the interest made on your savings account as profit.
Anything to be aware of?
Avoid making cash transactions as they will be charged interest and also handling fees – the cost of which, will eliminate any potential savings (or profit) from the 0% purchase deal.
Be aware of the 'allocation of payments' clause - this t&c listing often states that higher rate balances - such as cash transactions - will be repaid before lower rate balances - such as 0% balances. This can mean transactions made that result in a higher rate balance (e.g. cash withdrawal) can become 'trapped' behind your 0% purchases - incurring interest charges until your purchase balance is repaid in full first.
0% purchase is not 0% balance transfer – if you have a balance to transfer get a 0% balance transfer credit card instead.
Top 0% purchase credit cards...
1. HSBC credit card
2. Barclaycard Flexi-Rate credit card
3. Capital One Platinum credit card
4. Mint credit card
Compare 0% purchase credit cards
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