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Last updated October 2020
A 0% purchase credit card is a credit card with an interest-free introductory period. This allows you to make purchases on your credit card without interest fees for a set period of time.
They are ideal if you have been planning to make a big purchase as you can spread the cost out across the interest-free period.
When you first sign up for a 0% purchase credit card, you are given an interest-free period which can be anything from 12 months to 24 months. No interest will be charged within this period providing you can meet the minimum monthly repayments.
If you do not make those minimum payments, you may lose your interest-free period, and interest will be charged each month.
A 0% purchase credit card is a great way to avoid interest rates on your credit card purchases. Here are the main advantages of a 0% purchase credit card.
Getting a 0% purchase credit card can make purchases much more affordable and manageable but are there any downsides? Below are some of the downsides to be aware of with 0% credit cards.
We have listed out some frequently asked purchase credit card questions.
This may vary between credit card providers, but most cards will offer up to a 24-month interest-free period. That means if you make a purchase in the first month, you can split that repayment by 24 and pay it off over two years without incurring interest.
Yes. Credit card providers will look at your credit history before approving you for any kind of finance or credit card. This information will also help them to determine what credit limit to offer you and what interest rates to apply (after your interest-free period runs out).
If you miss any minimum repayments, you will likely lose your interest-free period. It’s easy enough to forget to make the minimum payment if you do it manually, so the best thing to do is set up a monthly direct debit to cover it. As the minimum monthly repayment can vary, most banks will let you set up a “minimum monthly payment” option to pay off your credit card.
This will depend on the lender’s decision and their criteria. Don’t just assume you won’t be able to get one if you have a poor credit history. If you have poor credit, you may still be able to get a 0% purchase credit card, but you will likely have a smaller credit limit and higher interest rates once the introductory period is over. A 0% interest card is actually a good way to help build your credit history up. But you will need to ensure you can make the minimum payments each month (or ideally more).