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0% Credit cards
Our Online Card Buys *
| Typical APR Variable | Max Int Free | ||
|---|---|---|---|
|
8.5% | 56 days |  |
|
8.8% | 56 days | |
|
14.9% | 56 days | |
|
|
14.9% | 56 days | |
|
14.9% | 56 days | |
| * Based on Lowest Standard Rates and is not a full search of the whole market | |||
How do 0% credit cards work? Borrow money, pay no interest - that's basically what a 0% credit card offers. Before you apply read this as there are many 0% credit cards on the market but they are not all the same. The headline deal may sound attractive but there are many differences between one 0% credit card and another.
Our online credit card best buys
A 0% credit card with 12 months interest-free balance transfer might sound more enticing than a 0% credit card offering only six or nine months interest-free balance transfer but there could be hidden costs which make it less attractive than it sounds on the surface.
Among the tricks that providers of 0% credit cards get up to in order to make their money back are setting your monthly payments against your cheapest debt first - your 0% balance transfer. That means any new spending on the credit card is racking up interest charges until your balance transfer is paid.
Watch out also for 0% credit cards that have high go-to rates. You won't have a 0% deal forever and the card issuers are making it more and more difficult to keep switching, so make sure you have a credit card that offers an interest rate that remains competitive after your 0% deal has ended.
There are also a number of 0% credit cards now actually charging a balance transfer fee! They won't charge interest on your balance but for the privilege of switching it to their card youll pay a percentage of the balance although most cap the charge at around £50.
Compare UK credit cards to find the best deal
Last Updated: April 2008 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.