Help Desk

What are 0% purchase credit cards

0% on Purchase credit cards permit you 0% interest on any purchases you make during the agreed promotional period. Their ideal use is for everyday spending, and promotional periods typically last up to 12 months.

What are the benefits of 0% purchase cards

The main benefit of a 0% on Purchase card is knowing that you do not have to pay interest on your purchases during the first 12 months or so, thus facilitating interest free shopping. Try not to spend more than you can afford though.

Choose the right card and you could combine the 0% on purchase facility with other benefits such as 0% on balance transfers or rewards.

What else should I know about 0% cards

• Remember to pay off the full balance before the end of the promotional period, to avoid being charged interest.

• Be careful if you use the credit card for both 0% balance transfers and 0% purchases, especially if the promotional offers are of differing durations. Make sure that you pay off the total debt before the end of the shortest promotional period, as any payments you pay off will go towards the cheaper portion of the debt.

• A good way to avoid confusion or losing money through interest payments is to use your credit card for one purpose; either as a balance transfer card or as a purchase card.

• Make sure you’re aware precisely what the bank considers to be a “purchase”. While normal spending will fall under the zero per cent offer, cash advances - taking money out at a cash point, online gambling, or in some cases, buying gift vouchers, won’t be covered in this section.

• Always ensure that you pay the minimum balance at least each month. If you don’t then you risk losing the benefits of the promotional period and, even worse, adversely affecting your credit rating.