How To Best Take Advantage Of 0% Purchase Credit Cards

Jonathan Halloway

Written by Jonathan Halloway on February 28, 2019

Updated February 28, 2019

man-using-credit-card

0% purchase credit cards can be beneficial if used well. It’s perfect for saving on huge and crucial purchases as long as you’re able to clear the balance within the agreed or introductory period clearly indicated. It’s superb for anyone thinking of a major purchase in the near future offering a most affordable way to access credit while enjoying the strength of virtually all credit cards out there (full consumer protection).

What does a 0% purchase credit card really mean?

If you fancy borrowing for less on a credit card, then 0% purchase credit cards will make sense. However, you must be sure that you’ve no problem paying off the monthly repayments and the full balance back prior to the end of the interest-free period.

0% purchase credit card offers you a period where you can purchase without paying any interest and can be any period, sometimes even more than 12 months. It means the cost of significant and expensive purchases can be spread over time for free. With some 0% purchase credit cards, you can even enjoy more benefits such as balance transfers, depending on the provider.

0% purchase credit cards are perfect for purchases that save you money if bought in a lump sum yet costly if you were to buy them without credit. For instance, annual tube tickets are cheaper than shorter individual journey ones, but the cost is very high. Using the zero per cent purchase credit card allows you to spread the repayments for more than 12 months and access the annual tickets at very affordable monthly costs.

How 0% purchase credit cards give you more

0% card for purchases only

Firstly, a 0% purchase credit card is perfect for purchasing items upfront that you couldn’t afford and then pay the debt off over an agreed set of time at zero interest. In case you’re able to clear the debt prior to the end of the introductory 0% period, you would have purchased the expensive item at zero interest. The credit would have cost you absolutely nothing.

Protection for purchases is a significant benefit too. The 0% purchase credit cards offer perfect legal protection for payments you make. Just like any other credit card, 0% purchase credit cards are well protected by Section 75 payment protection of amounts ranging from £100 to £30,000.

This means that if something goes wrong with your purchase, such as the seller going bust, faulty item or not shipped at all, you won’t really lose your money. You can simply claim it from your purchase credit card provider. Also, if the card is used fraudulently, the money can be returned by the card provider unless of course, the provider can prove negligence on your part.

Even if you believe you can service a 0% purchase credit card without a problem you must be very careful as with any other credit card. It can easily land you into severe debt for misusing it. Make sure you clearly understand the credit limit you’ve been given and completely understand any charges the providers issues.

The best 0% purchase credit card to choose

Compare credit cards

Obviously, the benefits that come with 0% purchase credit cards are great and can allow you to make the most of the credit facility without getting into debt and ruining your credit record. While choosing the best purchase credit card, go for one that gets you a 0% deal for the longest time possible. Choose one that gives you sufficient time to easily pay of the debt without accruing interest of any kind.

Don’t forget also to compare 0% purchase credit cards and their representative APR, generally the interest rate charged once the interest-free period has come to an end. For example, spending £1,000 on a card with a 17 per cent APR mean that you will owe £170 plus the £1,000 debt for a total of £1,170.

Who should go for the card?

If you’re thinking about spreading the cost of an expensive purchase for a few months or over a year the 0% purchase credit card is a wonderful choice. However, just like any other credit card out there, you must have good credit rating and history to be approved. After approval, you can then enjoy easier monthly payments and the entire balance once the promotional period of the card is over.

Missing payments could really ruin your good credit score standing. Set up direct debits to make sure no payment is missed. You can also change the date of payment to one that works for you, such as payday to sufficiently meet your credit obligations.

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