Zero Interest Credit Cards

If you utilize a bank card skillfully then it’s possible to borrow for number cost, get added security on your purchases and also earn cashback or rewards for paying on your card.

But, if you do not behave with control you might find yourself spending lots of interest and accumulating debts that are challenging to pay off.

Therefore what are the good qualities and disadvantages of experiencing a bank card – and what is the best way to utilize for a card and get acknowledged?

The pros


If you need to get anything costly and can’t afford to cover everything in one move, then a bank card is great, so long as you utilize it sensibly.

A 0% buy credit card allows you to buy that completely and then distribute the costs over numerous months, by creating a series of payments to apparent the balance.

As long as you pay this complete down before the conclusion of the interest-free time then you won’t get charged any such thing for utilizing the card in this way. But skip this deadline and you will spend a penalty in the shape of interest being put into the balance each month.



You obtain more security if you pay with a bank card than if you pay with a debit card, money or cheque below anything called Section 75 of the Consumer Credit Act.

If you buy something that fees between £100 and £30,000, you are certain to get your money right back if everything moves wrong. Quite simply, if the business moves breast, or your buy is faulty or doesn’t show up, you won’t eliminate out because you can claim the cash right back from your credit card provider.

You’ll also have security if your card is used fraudulently as your card service must refund the money. This won’t work nevertheless if your card service finds that you’re liable so make sure you do not create your PIN quantity down anywhere.

You obtain more security if you pay with a bank card than if you pay with a debit card, money or cheque below anything called Section 75 of the Consumer Credit Act.

Borrow for free

Some bank cards provide 0% periods indicating you can effectively take advantage of an interest-free loan. You need to make the minimal regular payments nevertheless, and apparent your harmony prior to the 0% provide stops nevertheless usually you will end up charged interest.

The common interest charge is 18% – very substantial, which explains why you must spend your debt down before interest sneakers in.

Not everyone wants an extended interest-free time, but even although you spend your credit card bill completely every month, you’ll however ‘borrow for free ‘. Credit card statements quote that you will get ‘up to 59 times interest free’– what this actually suggests is so long you pay down your bill in their whole by the due date, you won’t be charged interest. This can be quite a good help in managing your money flow.

Earn while you spend

Some cards also provide incentives to spend, such as cashback, respect points or air miles, which means you can really earn money from your credit card. They’re only worthwhile if you pay your bill completely – usually the interest you will end up charged could be more compared to price of the rewards.

Switch your balance

If your debt income on credit or store cards, getting out a new card can really be described as a excellent option. You’ll oftimes be spending interest rates of at least 18%, but you might reduce that to zero by moving your debt onto a 0% harmony move card.

There will be a move charge to pay of about 3%, but it’s generally worth every penny because it will still be less compared to interest you will end up charged if you stick with your present card.

Guarantee you pay your debt down before the conclusion of the 0% time nevertheless as you will likely then be charged interest on any debt you however have. You need to use our Wise Search tool to find out how probably you are to obtain acknowledged for each card.


The cons

Beware the debt trap

It’s essential to consider that a bank card is a questionnaire of borrowing. You get now and spend later – and you will find risks.

If you do not spend down your harmony completely every month, you will begin to rack up interest. Your debt can thus easily spiral unmanageable, particularly if you pay down only the minimal regular amount.

You ought to thus always take to to pay more compared to regular minimal and you must consider your credit card only as a short-term credit facility. You can find out how your harmony is afflicted with changing your regular repayment volume with our credit card calculator.

Hidden costs

The interest charge is not the only real cost of a credit card. A charge is likely to be charged if you’re late creating your regular payment, or skip it altogether. You’ll also spend a penalty if you surpass your credit limit. Therefore make sure you keep track of your paying and always spend your bill on time.