In a positive move for savvy consumers, a growing number of credit card providers are offering ever-longer 0% periods on new purchases, combined with bonus shopping vouchers to spend in-store.
Of the leading 0%-on-purchases and rewards deals currently available, Tesco offers the longest 0% period of 13 months, although the 12 months available from The AA and the 10 months from Marks & Spencer aren’t too far behind. All three providers offer a reward scheme, giving you vouchers to spend in-store.
Meanwhile, the Barclaycard Platinum With Purchase Credit Card offers a Best Rate 12-month 0% deal on purchases, and also gives cardholders 1% ‘Reward Money’ cashback on spending with participating retailers such as Pizza Express and Npower.
Five steps to get the most out of a reward card with a 0%-on-purchases deal
By following the five steps below, you can pay no interest on your credit card spending for up to 13 months, earn rewards to spend in your favourite shops and even earn extra cash with a Best Rate savings account:
- Apply for a 0%-on-purchases Best rate credit card. Make sure you check how generous the reward scheme is by using our new Reward credit cards review.
- Set up a direct debit for at least the minimum monthly payment. If you fail to make the minimum payment, you could lose the whole 0% deal, as well as earning no rewards that month.
- Spend on the card, earning points or vouchers to spend in-store.
- Put the money you would have used to pay off your monthly credit card bill into a Best Rate instant access savings account.
- Use these savings to pay off the remaining credit card balance in the final month of the 0% deal.
New credit card deals are good news for savvy consumers
Which? credit card expert Martyn Saville commented: ‘After a couple of years of stagnation in the credit card market, card providers are starting to bring out some innovative products that, if used wisely, can offer great value for consumers.
‘The recession and the coming budget cuts have left many consumers wary of borrowing and very keen to maximise their cash. While reward credit cards are rarely good for borrowing on, following the steps above could mean your credit card provider pays you for holding the card.’
Which? Best Rate credit cards
If you need advice to help you choose the best credit card for your needs, read the free Which? guide to choosing a credit card.
Once you know the best type of card for you, check out Which? Best Rate credit cards to find the most competitive deal available today, whether it’s a reward credit card, a cashback card or the longest 0% on purchases deal.
And check out Which? Recommended Providers to find out which credit companies offer the best customer service without hitting you in the pocket.
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