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Credit Cards: Best 0% Credit Cards for Purchases

A good way to buy those presents

What are 0% purchase credit cards?
Why they're good for Christmas spending
Should I apply?
Find the best cards here

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The best 0% APR on purchases card is the Halifax All in One Card which gives you 10 months 0% APR on both Purchases and Balance Transfers. The credit crunch means deals like this are disappearing fast so grab it now - details here.

The best 0% purchase cards

The best 0% purchase card on the market at the moment is the Halifax All in One Card which gives you nine months 0% interest on purchases and balance transfers (3% handling fee applies). The regular rate of interest is 15.9% APR.

Marks & Spencer Money is offering a very similar deal. Their M&S Credit Card offers ten months 0% APR on purchases and has a typical rate of 15.9% APR. However they are only offering six months 0% APR on balance transfers, subject to a 2% fee.

Next up is the Lloyds TSB Advanced Credit Card, which offers six months 0% on purchases. It's not as long as the other cards, but the typical interest rate is lower at 11.9% APR.

Also offering six months 0% APR on purchases is the Barclaycard OnePulse card. The typical APR is 14.9%, and until December 31st you get 0.5% cashback on all purchases and 5% cashback on all spending on London Transport tickets.

The Post Office credit card is also a good one to consider. Not only does it offer three months at 0% on purchases but also, unusually, does foreign transactions for free. Most credit cards charge about 2.5% every time you use them abroad, so if you’re off on holiday soon, this is definitely one to look at.

What are 0% purchase credit cards?

These are cards that will charge you no interest at all for a certain period of time when you use them to buy things.

You might buy one big thing that brings you up to your credit limit, or several smaller items. Whatever you purchase, you can spread the cost of paying for it over a few months.

Who are these cards good for?

IF (and it's a big 'if') you are disciplined, cards that offer 0% interest on purchases can be a real help if you want to spread the cost of buying something big.

It's much better to use one of these cards than to go for a 0% finance deal in a shop, for example. With your own 0% credit card you have a lot more control over the way you pay back the money.

To make the most of these cards, you should aim to pay the whole thing off before the 0% period finishes so that you clear the whole debt before you need to pay any interest on it.

If you don't manage to do this, you should try and switch the remaining debt to a 0% on balance transfers card instead.

If you're really canny, you can even use one of these cards to make you money. If you have the cash to cover the whole purchase, you could still buy the item (or items) with your 0% purchase card, then put the money into a high interest savings account and earn some interest on it until the end of the 0% period.

Purchase cards and Christmas spending

If you don't have the cash to pay for your Christmas celebrations on the spot, a 0% purchase credit card is a good alternative solution.

Spending on 0% purchase cards is still getting into debt, so you need to limit your spending as much as you can. However, you won't be paying any interest on your spending, so you'll only need to pay back the exact amount you spend.

Just be sure you can pay the whole balance off before the end of the 0% period. You might think that with several months to pay off the debt, that's not a problem. But by the end of the 0% period you'll be gearing up for another Christmas, which you'll have to pay for. So you don't still want to be offloading last year's debt!

The key thing is to control yourself and not just buy things on a whim because you can. Only buy the essentials you need for a fun Christmas and make sure you start paying off your balance immediately in the New Year.

Should I apply?

Not everyone is approved for these cards. And remember that each time you apply for credit and get rejected you get minus points on your credit rating 'scorecard'.

Get a 30-day free subscription to Credit Expert and check your score before applying (just remember to cancel it at the end of the free period if you don't want to continue with a monthly subscription).

If you find out that your score isn't excellent, it's probably best not to apply for one of these cards.

Go instead for a card with a low regular balance. Check here for the lowest standard rates. Or, even better, save up for the thing you want to get and then buy it!