Want to transfer an existing balance to a o% interest credit card, or spread the cost of a new purchase over several months interest-free? MoneySupermarket is independent and free to use, so compare the best 0% card deals today.
Why compare interest free credit card deals?
Credit cards have long been used as a convenient way to buy things without having to pay for them up-front. Many purchase credit cards offer an introductory interest-free period of anywhere between three and 16 months.
This means that during these periods, you need only pay back the face-value of the goods you buy, without incurring any additional interest charges. This is great if you want to spread the cost of an expensive or one-off purchase over a longer period to make it more affordable.
But interest free cards aren't only suitable for those who want to spend. If you already have a credit card charging you interest, you can move your debt to a 0% balance transfer card and avoid paying interest on that debt for as long as two years.
When these interest-free periods end, however, the interest rate on the card will rise to a higher rate of interest. If you have an outstanding balance on the card by the time the interest-free period ends, you’ll be charged interest at that higher rate.
If you are going to compare interest free credit card offers, you should be sure to find out what the interest rate will be after the 0% period ends, and if there are any other conditions on the card, such as balance transfer fees.
What are the benefits?
The great thing about interest-free credit cards is that you avoid paying interest on your purchases or transferred debt for the length of the introductory interest-free period.
As long as you make the minimum repayments (or preferably more) on the card each month, and clear the balance before the end of the interest-free period, you’ll never be charged interest.
Credit cards also offer a degree of protection on purchases too, as the card issuer would be jointly liable if the goods you bought turned out to be faulty, didn’t arrive or the merchant went bust.
Sometimes, when you apply for credit, it can go against you if you have no credit history. Responsible use of an interest free credit card can be a good way of building some credit activity so that you are left with a good credit history.
What are the drawbacks of 0% interest credit cards?
You shouldn’t take on a credit card lightly as misuse of a card can have a negative impact on your credit rating and could affect your chances of getting credit in the future. You should only consider a credit card if you have the ability to pay back what you borrow.
Credit cards aren’t suitable for everyone, and are perhaps best kept for large or one-off purchases, giving you a chance to spread the cost of the purchase over a longer period of time. Compare interest free credit card deals to see which card has the longest interest-free period.
Also, the more competitive rates and offers tend to be reserved for those with the best credit scores, so if your credit score is less than perfect you might not be able to take advantage of the best deals.
What are the alternatives to interest free credit cards?
If you ahve a large purchase to make, a personal loan might be better for you if you want to spread the cost of a purchase over a period of years.
Debit cards are an obvious alternative way to pay, and carry less risk as they don’t have a credit facility unless you have an overdraft facility on your bank account. Debit cards do offer a degree of protection on purchases, but not as much as credit cards.
If you want the security afforded by credit cards but without the credit facility, prepaid cards might be suitable for you. Prepaid cards allow you to pre-load an amount of money onto the card from another account and then you can spend that money using the card.
This can be great for shopping online if you’re concerned about security, as only the amount pre-loaded onto the card can be spent. If someone was to get hold of the details, they would only be able to spend that amount.
Your personalised chance of approval
We’ve taken the details you gave, and used them to show you personalised scores to tell you the chance that your application for each card would be successful.
Why is this important?
Every time you apply for a credit card, a mark is left on your credit score. That means it’s better to get it right first time. Your scores help you understand which cards you have the strongest chance of getting.
The higher the score, the stronger chance you have of getting the card. If you see a very low score, you’ve probably better off choosing a different card.
- Consider a different card
- Not eligible
- Your chances are good
- You've been pre approved
If you see a high score, you can be fairly confident. The scores aren’t a guarantee, as acceptance of your application is at the sole discretion of the card issuer, but they should help guide your choice.
In some cases, we will not be able to display a score for a product because we do not have enough information about the card issuer’s acceptance criteria or we have not been able to match your details at the credit bureau.
We work closely with our partners to improve our eligibility scores for all products that are of interest to you.
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