British consumers are indulging in a borrowing spree, according to recent Bank of England data.
Figures published last week suggest that UK consumer credit borrowing surged by £1.2bn in March, marking the strongest growth since 2008.
This growth was overwhelmingly fuelled by a £1.1bn increase in the use of personal loans and overdrafts.
Credit card borrowing increased by £161m during the same period, accounting for just a small amount of the overall growth.
However, if used correctly, credit cards can be a cost-effective method of borrowing, particularly ones that charge 0% interest on purchases for a set period.
Here, we explain how to make the most of 0% purchase deals on credit cards – and reveal the most popular 0% purchases credit cards among Which? Money Compare users.
Which? Money Compare Table – 0% purchases credit cards – hundreds of cards compared
How to make the most of 0% purchases credit cards
A 0% purchases credit card will charge no interest on any purchases made for an introductory period of time.
Depending on your choice of card, this introductory period could be as long as 23 months, provided you make the minimum monthly repayment.
However, it’s paramount to ensure that the balance is completely cleared once this deal comes to an end, as the interest on any remaining debt will sharply increase immediately afterwards.
Find out more: How to find the best 0% purchases credit card – tips on finding the right deal
Most popular 0% purchases credit cards
The Which? Money Compare credit card tables let you search hundreds of cards from providers large and small to choose a great deal based on quality of service as well as cost and benefits.
Below, we list the three credit cards with 0% purchase deals that the highest number of Which? Money Compare users have clicked through to from the site since the start of the year.
For each card, we also provide a link to the Which? Money Compare tables where you can find out more.
Although these are most popular cards among Which? Money Compare users, they don’t all offer lengthy 0% purchases deals. Santander does have the longest 0% term of 23 months, but the other two are well down the table.
However, they do have other good features, which we list below. See the Which? Money Compare tables to check out all credit cards offering 0% purchase terms ranging from 23 months to one month.
#3 Tesco Bank Clubcard 35 Month Balance Transfer Card
This card’s three-month 0% purchases deal is one of the shortest on the market. However, it also comes with a 35-month interest-free period on balance transfers and offers Tesco Clubcard points on all spending.
The card has an APR of 18.9% and a balance transfer fee of 2.7%. Click here to find out more about this card.
#2 Saga Over 50s Platinum Credit Card
This card has an 0% purchases deal lasting nine months. You’ll also pay no foreign loading fees on transactions made overseas. The card has an APR of 11.9% and is only available to those aged 50 and over. Click here to find out more about this card.
#1 Santander 123 Credit Card
This card has a 23-month 0% purchases deal, which is currently the longest on the market, and a cashback scheme covering a wide range of purchases.
You can earn 3% cashback at many major petrol stations and on National Rail and TFL travel, 2% cashback at many major department stores and 1% cashback at many major supermarkets.
The card has an APR of 16.5% and an annual fee of £24. Click here to find out more about this card.
- Credit cards with low APR – see this Which? Money Compare table
- Personal loans – dozens of loans compared by our experts
- Best bank accounts for authorised overdrafts – see our tables
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