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Zero Interest Credit Cards

If you utilize a credit card cleverly then it’s probable to use for no cost, get added protection on your own buys and even make cashback or rewards for spending on your own card.

But, if you don’t behave with control you could find yourself paying a lot of curiosity and racking up debts that are challenging to pay off.

So what’re the pros and drawbacks of experiencing a credit card – and what is the better way to apply for a card and get accepted?

The pros


If you want to get something costly and can not afford to cover it all in one move, then a credit card is ideal, so long as you use it sensibly.

A 0% obtain credit card lets you pay for them completely and then spread the expenses over a number of months, by making a series of payments to distinct the balance.

Provided that you spend that whole off before the end of the interest-free period then you will not get charged anything for utilising the card in that way. But miss that timeline and you’ll spend a penalty in the form of curiosity being added to the balance each month.



You obtain more protection if you spend with a credit card than if you spend with a debit card, money or cheque under something known as Area 75 of the Customer Credit Act.

If you get something that fees between £100 and £30,000, you are certain to get your money back if it all moves wrong. In other words, if the company moves bust, or your obtain is bad or doesn’t show up, you will not lose out since you can state the amount of money back from your own charge card provider.

You will also have protection if your card can be used fraudulently as your card service should return the money. This will not work nevertheless if your card service finds that you were negligent therefore make sure you don’t write your PIN number down anywhere.

You obtain more protection if you spend with a credit card than if you spend with a debit card, money or cheque under something known as Area 75 of the Customer Credit Act.

Borrow for free

Some credit cards offer 0% intervals meaning you are able to efficiently benefit from an interest-free loan. You will need to help make the minimum regular payments nevertheless, and distinct your harmony ahead of the 0% offer stops nevertheless usually you will end up charged interest.

The average curiosity charge is 18% – very hefty, which explains why you ought to spend your debt off before curiosity sneakers in.

Not everyone needs a long interest-free period, but even although you spend your charge card bill completely every month, you’ll however ‘use for free ‘. Credit card statements quote that you will get ‘up to 59 days curiosity free’– what that really suggests is as long you spend off your bill in its entirety by the deadline, you will not be charged interest. This could be a good assist in handling your money flow.

Earn while you spend

Some cards even offer incentives to pay, such as cashback, loyalty points or air miles, which means you could actually earn money from your own credit card. They are just beneficial if you spend your bill completely – usually the curiosity you will end up charged will be more compared to the price of the rewards.

Switch your balance

If you owe money on credit or keep cards, using out a new card could actually be considered a good option. You’ll probably be paying curiosity prices of at the very least 18%, but you could reduce that to zero by moving your debt onto a 0% harmony transfer card.

There is a transfer fee to pay of around 3%, but it’s usually worth it since it will still be less compared to the curiosity you will end up charged if you stay together with your current card.

Ensure you spend your debt off before the end of the 0% period nevertheless as you will likely then be charged curiosity on any debt you however have. You should use our Smart Search software to discover how probably you’re to have accepted for each card.


The cons

Beware the debt trap

It’s crucial to remember that a credit card is a questionnaire of borrowing. You purchase today and spend later – and there are risks.

If you don’t spend off your harmony completely every month, you will quickly tray up interest. Your debt can thus quickly control uncontrollable, especially if you spend off just the minimum regular amount.

You should thus generally try to pay more compared to the regular minimum and you ought to consider your charge card just as a short-term funding facility. You’ll find out how your harmony is afflicted with adjusting your regular repayment volume with our charge card calculator.

Hidden costs

The curiosity charge is not the sole cost of a credit card. A fee will soon be charged if you are late making your regular payment, or miss it altogether. You will also spend a penalty if you surpass your credit limit. So make sure you record your spending and generally spend your bill on time.