How does the new Halifax credit card measure up?New product among the best 0%-on-purchases credit cards
29 August 2014
Halifax has launched a new credit card with a market-leading 0% interest deal on purchases.
The Halifax Purchase Credit Card will charge no interest on purchases for 20 months - the longest 0%-on-purchases deal currently available.
This lengthy deal makes the new card an ideal choice for anyone looking to spread the cost of an expensive item, or several cheaper items, over a longer period.
Which? Comparison Table - Best 0% purchase credit cards - compare the best deals on the market
How does it compare?
Halifax has thrown the latest punch in what has been a drawn-out fight to provide the longest 0%-on-purchases credit card deal.
The 20-month deal is one month longer than the next best 0%-on-purchases card, released by Tesco Bank in July.
Once the 0% period comes to an end, the APR shoots up to 18.9%, although you can expect a similarly high rate increase from most cards offering lengthy introductory deals.
Be sure to make a note of when the deal ends, so you remember to transfer any remaining debt before this new rate kicks in.
Find out more: Halifax credit card review - see how Which? members rate Halifax for customer service
The card will also charge 0% interest on balance transfers for six months - and you'll only have to pay a 1% fee on transfers made in the first 90 days. The fee rises to 3% after this period.
This is a handy feature for those with small debts lingering on other credit cards, but it's not the best balance transfer deal on the market.
If you're more interested in a great balance transfer deal than a lengthy 0%-on-purchases offer, then this may not be the best card for you.
Which? Comparison Table: Best 0% balance transfer credit cards - all available deals compared
There's no reward scheme associated with this card, so there's little incentive to make purchases on it once the 0% deal is over.
If you're a frequent spender, it might be worth applying for a 0%-on-purchases card which also offers a tempting cashback deal.
The Santander 123 Credit Card, for example, includes an 18-month 0%-on-purchases deal alongside a reward scheme which pays cashback whenever you spend at petrol stations, train stations, major department stores or supermarkets.
Which? Comparison Table: Best cash back credit cards - all available deals compared