Best interest-free credit cards

Credit cards

Best interest-free credit cards

By Rob Goodman

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Best interest-free credit cards

Find out how an interest-free credit card can help you spread the cost of large purchases.

Interest-free credit cards can be a great way to spread the cost of purchases. The longest deals on the market give you more than two years to pay back what you've borrowed without charging any interest.

We explain how these cards work and review the longest deals on the market.

Which? Money Compare: Best 0% on purchases credit cards – click here to compare the longest deals.

What is a 0% purchase card?

These cards won't charge interest on purchases for an initial period, typically between three and 27 months, so there's no immediate rush to pay off your balance.

However, you need to be disciplined enough to steadily repay the debt before the promotional period ends, otherwise you'll be charged interest at the standard APR. 

When choosing a credit card that offers 0% on purchases, concentrate on the length of the 0% deal.

Getting the most out of your 0% on purchases credit card

The key to making the most of these cards is to ensure you have no remaining debt when the 0% deal comes to an end. 

One way to do this is to set up a monthly direct debit transferring money from your bank account on to your credit card.  

Simply divide the amount you've spent on your credit card by the number of months that your 0% deal lasts and set up a direct debit for that figure.

For example: Joe buys a boiler for £810 with a credit card that has an 18-month 0% purchases deal – 810/18 = 45, so he should set up a direct debit for £45 a month.

Provided you don't make any more purchases or cash withdrawals, this will ensure that you don't pay interest on your debt. 

If you have some debt remaining after your card's promotional period ends, consider transferring the debt to a card that offers a 0% interest deal on balance transfers. 

Which? Money Compare: Best credit cards for 0% on balance transfers and purchases

  • Last updated: July 2016
  • Updated by: Rob Goodman 

Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.