There are some really great credit card deals around at the moment, whether it be balance transfers, card for spending or cash back. I’ve picked out a few with the best rates here.
A 0% credit card is a great way to get an interest free loan however please consider the following…
DO you really need to buy the items you’re considering getting the card for…
Can you afford to repay the debt in the interest free period
Is your credit rating good enough to apply for the card?
You must pay the min monthly repayment, otherwise the interest free period will be removed.
**Balance Transfer Cards**
There are some amazingly long interest free periods currently for balance transfers
-0% on balance transfers for 3 years (2.49% fee applies)
-A fee of 3.5% will be applied, then reduced to 2.49% by a refund
-0% for 6 months from account opening on purchases
-0% for up to 36 months from account opening on balance transfers within the first 90 days.
-0% for 6 months from account opening on purchases.
-An initial 3% fee applies, we’ll then refund 0.1% on balances transferred within the first 90 days.
Both of these cards interest free periods may be shorter depending on credit circumstances. And you cant apply for a card if you already have one with the same lender.
There are cards available just for purchases, I have used these when buying a car for example. A much cheaper loan than the car dealer would give.
Tesco bank give 21 months worth of interest free on purchases…plus all the extra goodies from clubcard vouchers
Halifax give 20 months of interest free on purchases.
**Cash Back Cards**
Santander 1-2-3 credit card.
Cashback You can earn:
1% cashback at all major supermarkets
2% cashback at all major department stores
3% cashback at all major petrol stations, and on National Rail and Transport for London travel, including Santander Cycles (on combined spend of up to £300 a month).
Also comes with 23 months of interest free purchases
AMEX – 5% for the first 3 months of purchases
Cashback: 3mths 5% (max £100) | Tiered up to 1.25% after
Paid out: On card anniversary
Annual fee: None | Min spend: £3,000 per year
Rate: 19.9% representative APR (See Official APR Example)
You must set up a monthly direct debit on these cards otherwise you’ll pay the interest charges of a pretty high 19.9%.