These are the best 0% purchase credit cards - according to a finance expert

by Derin Clark

With all areas of the UK slowly making their way out of lockdown, many people are now looking ahead and tentatively making plans for the rest of the year.

Whether you are hoping to book a holiday this summer, looking to make home improvements, or simply want to enjoy life a little more when lockdown ends, using a 0% purchase credit card could be the best way to spread the cost of your planned spending.

What is a 0% purchase credit card?

A 0% purchase credit card is a credit card that offers a pre-set period of time in which purchases can be made on the card and no interest is charged. On some 0% purchase credit cards the interest-free period can last for almost two years, making these cards a great option when making a large purchase, for example booking a holiday or buying a new sofa, as it gives you time in which to repay the debt without incurring interest charges. Bear in mind that you will still need to make at least the minimum repayment of the amount borrowed each month.

The best way to use a 0% purchase credit card is to have a repayment plan in mind before making the purchase to give you enough time to repay the debt before the interest-free period ends. As with all credit cards, you should be careful with the amount you spend on these cards as credit card debt can quickly spiral out of control.

As well as this, it is often a good idea to ensure that you have repaid outstanding debt before applying for a new 0% purchase credit card. Alternatively, some 0% purchase credit cards allow you to transfer the balance of existing credit card debt to the card, which not only provides you with an interest-free period in which to repay new purchases made but also time to repay existing credit card debt.

If you are thinking of doing a balance transfer onto a 0% purchase credit card you should be aware that you may be charged a small fee to do this, which should be included into your repayment calculations.