Why Choose a 0% Purchase Card

A 0% Purchase credit card is not the ideal card for everyone. If you have already have outstanding debts or balances it's prudent to try and pay off your debt while paying as little interest as you can, rather than making any more purchases, so this type of card may not be for you. If you don't have any debts or are applying for a credit card for the first time then a 0% purchase card is worth considering as an option.

Introductory Period

Most 0% Purchase cards will have a time limit and this means that after a period of time interest will be charged on your purchases. This time limit varies considerably between lenders and can be anything from 6-18 months, so look around for the best deals on offer.

If you are sure you can meet your repayment and pay off your card in full before the time limit expires then you can gain some benefits from this type of card. They can be used for large purchases much in the same way an unsecured loan can be used, but without having to pay the interest. Some cards will offer cash back or discounts on your purchases, so if you are sensible in the way you use your card you will gain benefits from them.

What Is A Purchase?

Before deciding on which card you go for make sure you understand exactly what the lender considers a 'purchase' to be. Not everything comes under the umbrella of a 0% purchase. Normal spending will come under the 0% offer but making cash withdrawals at an ATM, cash advances, online gambling and even the purchase of gift vouchers won't be covered. You will pay interest immediately on this type of transaction and it will be at a higher rate too. These types of purchases will be the last thing to be paid off, so they will be accruing interest all the time they sit in your balance and the amount can quickly grow if you're not careful. Always find out what the APR is going to be after the 0% interest period ends.

Choosing a 0% purchase card will give you the benefit of interest free buying but only until the initial introductory period. It's ideal for spreading your payments over a period time. They are also a great way to make interest free purchases rather than using store cards or Hire Purchase agreements as long as they are paid in full before the 0% time period expires.

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