Best 0% credit cards

Best 0% credit cards
Compare cards with up to 21 months’ interest-free spending

We advocate against borrowing unless absolutely necessary, as it may result in complications. However, in situations where borrowing is unavoidable, when utilized appropriately, 0% spending credit cards offer the most cost-effective solution. This comprehensive guide provides detailed insights into potential pitfalls to be mindful of. Additionally, our eligibility calculator assists in identifying the credit cards for which you are most likely to qualify before submitting an application.

Top-pick 0% spending cards

• Longest 0% purchase credit card deals
  Barclaycard up to 21mths 0%
  M&S Bank up to 20mths 0%

• 0% cards for poorer credit scorers
  Virgin Money 12mths 0%

How do 0% purchase cards work?

In simple terms, a 0% purchase card provides a window of several months during which no interest accrues on new purchases. This can result in substantial savings, potentially amounting to thousands of pounds, compared to using a standard credit card (provided you settle the balance within the same timeframe).

When used wisely, these cards offer the most cost-effective borrowing option over the intermediate period, although they should not be seen as a green light for reckless spending. We recommend leveraging a credit card solely for essential, pre-planned, and manageable one-time expenses, such as replacing a malfunctioning refrigerator. This entails borrowing the minimum necessary amount and committing to repay it within the interest-free period.

Granted, amidst the current cost-of-living crisis, the allure of acquiring such a card to bridge income shortfalls may be strong. However, succumbing to this temptation could exacerbate future financial burdens, adding complexity to your life. While borrowing at 0% may seem preferable to accruing interest, it is far more prudent to steer clear of relying on borrowing to cover income gaps whenever feasible. For further guidance, we encourage consulting our Debt Help Guide.

The three golden rules

Before applying for a 0% spending card, ensure you read the three golden rules.

1. Ensure that you adhere to the monthly minimum payment requirement and stay within your credit limit to retain the 0% interest rate. Immediately establish a direct debit for at least the minimum repayment upon approval. Even with the absence of interest charges, monthly repayments are still necessary.Failure to make a repayment could result in forfeiture of the 0% offer and incur a fee of approximately £12. Additionally, it may negatively impact your credit history as a missed payment.Exercise caution not to exceed your credit limit, as doing so could prompt the termination of the 0% offer, leading to the initiation of interest charges.Strive to exceed the minimum payment whenever possible, unless you have significant debts elsewhere, in which case prioritize repayments towards those debts. Minimum payments are structured to prolong debt duration, a situation you should endeavor to avoid. Refer to strategies for overcoming this challenge in Beware: Minimum Repayments.

   2. Make it a priority to settle your credit card balance during the 0% introductory period – the goal is to make regular payments each month, effectively treating it as an interest-free loan.

   While traditional loans typically don’t offer 0% interest rates, 0% credit cards do. Therefore, the strategy is to transform your credit card into a temporary loan.

   If you exceed the promotional 0% period by just one month, the interest charges soar. Hence, it’s essential to calculate the required monthly payments to clear the balance by the end of the promotional period and mark that date on your calendar.

   To achieve this, divide your total spending by the number of months with a 0% interest rate and establish a direct debit to cover this amount each month. This method mimics a loan repayment plan where you gradually pay off the balance over a fixed timeframe.

   For instance, if you’ve spent £600 over a year, you’d need to pay £50 each month to clear it within the interest-free period. Should you find yourself unable to clear the balance in time, refer to our Balance Transfers guide for comprehensive instructions on transferring your debt to another 0% interest card.

   3. Avoid conducting balance transfers or cash withdrawals with these cards, as they typically incur high interest rates. Although purchases made with these cards may offer interest-free periods for several months, it’s essential to verify if the same applies to other transactions, such as balance transfers.Certain cards may permit balance transfers within the same 0% interest period allocated for purchases, albeit subject to a one-time fee, usually around 3% of the transferred balance. For comprehensive details, refer to our Best all-rounders guide.

   Cash withdrawals present a different scenario, often incurring interest from the moment the withdrawal is made until it is fully repaid. Consequently, you’re likely to notice an interest charge on the initial statement following the cash withdrawal, covering the period from the withdrawal date to the statement issuance date.

   Moreover, interest may also accrue on subsequent statements due to the time lapse between statement generation and payment. This delay could range from a few days to several weeks, during which interest on the cash withdrawal continues to accumulate until settlement.

Longest interest-free credit cards

Here are our top-pick cards with the next best below for you to compare, all with a long 0% period.

Barclaycard	Longest 0% spending card on the market of ‘up to’ 21mths, though some could get fewer interest free months. If you’re pre-approved in our eligibility calculator you’ll definitely get 21 months at 0%, otherwise you could be accepted and get just 10 months.
	– Up to 21mths 0% – 24.9% rep APR	Check eligibility
		Apply*
M&S Bank	Slightly shorter 0% period than above, plus earn M&S points on spending – but, again, some could get less time at 0%. You’ll get 20 months at 0% if you’re pre-approved in our eligibility calculator, otherwise you could get just 15 months. This could be a good option if you’re not pre-approved for the card above, as the worst-case acceptance scenario is better. You also get one point for every £1 spent in M&S and every £5 spent elsewhere. Points can then be converted to M&S vouchers.
	– Up to 20mths 0% – 24.9% rep APR	Check eligibility
		Apply*
NatWest	A shorter 0% period than the above cards, but all accepted get the full 19 months at 0%. This could be a good option if you’re not pre-approved for the cards above and have decent odds for this one as everyone accepted gets the full time at 0%.
	– 19mths 0% – 24.9% rep APR	Check eligibility (1)
The next best 0% spending cards. Here are quick details of decent alternatives.
MBNA Only purchases made in the first 60 days are interest-free	– Up to 21mths 0% – 24.9% rep APR	Check eligibility (1)
Sainsbury’s Bank	– Up to 20mths 0% – 23.9% rep APR	Check eligibility
		Apply*
Lloyds	– Up to 20mths 0% – 24.9% rep APR	Check eligibility (1)

(1) MBNA, NatWest and Lloyds have asked us to link only to our eligibility calculator – See all official APR examples.

Looking to apply for these credit cards?

Utilize our eligibility calculator to pinpoint the cards that are poised to approve your application. Through a ‘soft search’ mechanism, which doesn’t affect your credit report, it computes and displays the likelihood of securing the premier credit cards. This method illuminates the cards for which you’re most apt to gain approval without any repercussions on your credit score.

Once you’ve identified a promising option, simply click ‘apply’ to proceed to the lender’s website. From there, you can furnish any additional information required by the lender and complete the application process.

Top interest-free cards for bad credit

If your debt levels are elevated, if you’ve missed recent or past payments, experienced bankruptcies, county court judgments (CCJs), or individual voluntary arrangements (IVAs), it’s likely that your credit history isn’t optimal.

Before proceeding, consider utilizing our eligibility calculator to gauge your likelihood of approval for the aforementioned cards. However, if the calculator indicates minimal or no chances, the following cards provide a brief 0% period, particularly beneficial if your credit issues are at least a year old. Moreover, these cards can assist in managing existing, costly debt…

How to use a 0% period to give a respite from existing debts

To begin, it’s prudent to advise individuals who have faced credit challenges in the past to approach new borrowing with caution. However, leveraging the 0% spending period offered by these cards can offer relief and help save money on high-cost debts, such as payday loans or overdrafts with steep interest rates. Here’s a breakdown of how it works:

Step 1: Utilize the 0% spending card for regular expenses, up to the credit limit. By opting for card payments instead of withdrawing cash from your bank account, your available funds in the account should gradually accumulate.

Step 2: Use the accumulated funds in your bank account to mitigate your overdraft or repay creditors. Essentially, you’ve transferred the debt onto the card.

Step 3: No interest accrues during the 0% period (which can extend up to 12 months, depending on the specific cards mentioned below), affording you time to reduce your overall debt before the promotional period ends. However, it’s imperative to continue making the minimum monthly payments. It’s advisable to create a budget to facilitate this process.

Step 4: When the 0% period expires, the interest rate reverts to the higher representative APR of the card (up to 33.9%, as indicated below). Therefore, it’s crucial to ensure the card is debt-free by this point. Nonetheless, even in the worst-case scenario, this approach is likely to be more economical than resorting to payday loans. If the interest rate on the card surpasses that of your overdraft, consider using the overdraft facility to settle any remaining debt on the card.

Top poor-credit 0% purchase cards for new cardholders

Virgin Money	The longest 0% period designed for those with poor credit by far. Use our eligibility calculator to see if you’re ‘pre-approved’ – all who are get the headline 12 months at 0%. You must have a recent history of managing credit, even if you’ve had CCJs or defaults in the past, and a yearly £15,000+ personal income
	– 12mths 0% – 29.9% rep APR	Check eligibility
		Apply*
The next best poor-credit 0% spending cards. Here are quick details of alternatives.
Capital One	– 6mths 0% – 37.9% rep APR	Check eligibility (i)
Barclaycard Forward	– Up to 6mths 0% – 33.9% rep APR	Check eligibility (i)
Post Office	– 3mths 0% – 29.9% rep APR	Check eligibility
		Apply*

(i) These providers have asked us to link only to our eligibility calculator – as the cards aren’t available to apply for directly. | See all official APR examples.

If you can’t get these cards, read our Credit cards for bad credit guide for more help to build or rebuild your credit history.

Cashback sites may pay you for signing up

As an extra boon, members of specialist cashback websites can be paid when they sign up to some financial products. Do check that it’s exactly the same deal though, as terms can be different. And remember the cashback is never 100% guaranteed until it’s in your account.

Full help to take advantage of this, plus pros and cons, in our Top cashback sites guide.