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9 Best Interest Free Credit Cards - 0% Credit Cards UK

By Kirthana Devaser

Credit cards! Our generation is battling $1,000 billion in toxic credit card debt and the average credit card debt per household in the UK is £2,655.

Not many people know, but there are credit cards out there that come with 0% interest. A card with no interest sounds too good to be true?! This guide is to help point consumers in the right direction on what to look out for and what may just be the best option when it comes to 0% credit card deals. Most importantly, this guide is built on keeping you debt-free!

How Does an Interest Free Credit Card Work?

A 0% credit card allows you to purchase items upfront and pay off the amount you have spent over a period of time without any interest. If you pay off your debt by the end of the pre-agreed 0% period, the credit would not have cost you anything.

Things to Remember When Getting a 0% Credit Card:

1. Debt is your biggest enemy

Debt is NOT your friend. Remember, only borrow when it is absolutely necessary. Try to use your savings as much as possible when it comes to purchases. Only borrow for things you have budgeted for and can afford to pay back. It’s important to recognise never to borrow in order to fill income gaps. This can leave you in a debt spiral, and before you know it, you will be drowning in debt.

If you use 0% credit cards tactically and with financial discipline, you will be able to steer through safely.

2. Be sure to make the monthly minimum repayments at the very least

Some cards give you 0% for up to 20 months on new purchases. Though you may pay 0% interest, these repayments MUST be made every month. Set up a direct debit for these repayments. Remember, if you miss any of these payments and you may lose the 0% deal and be charged £12. Not to mention, this can also affect your credit report and have a negative impact on your credit score.

3. Instil financial discipline and target to clear card within the 0% period

As mentioned above, whilst some deals give you 0% for up to 20 months, aim to clear the card within the 0% period.

Divide what you have spent by the number of 0% months on your deal. This will give you the total a month needed to be paid monthly in order to pay off your borrowed sum within the 0% period. Once this is done, set up a direct debit to clear it in time. Therefore, you will not have to pay any interest on your purchase and fully benefit from the 0% deal.

For example, if you have to clear £1,200 in a year, you would have to pay £100 monthly. It’s simple!

4. Watch out for “Up To” deal-bait.

Like most things that are too good to be true, most of the time there is a catch to watch out for. Sometimes you may apply for an advertised 0% card and be accepted for a deal with fewer months. This typically occurs when you may have less credit history.

For example, you may apply for a 15-month 0% spending deal, however you may only be given a 10-month 0% spending deal instead. Please look out for this and be sure of what deal you have signed up for.

If you are worried about your credit score or history, check out our guide on credit-scores and how to build credit history here.

Best Interest Free Credit Cards

TSB

best 0% credit card

Though the 0% length is up to 20 months, you may be accepted and offered 15 or 10 months at 0%. The interest on purchases after 0% are 19.95%, 24.95% or 26.95%. The minimum repayment is greater than 1% of the balance plus interest or £5. To apply and read more about this card, you can check this link here.

MBNA

best 0% credit card

Though the 0% length is up to 20 months, this is only on purchases made in the first 60 days. Besides that, you may only be accepted and offered 12 months at 0%. The interest on purchases after 0% may vary between 20.93% and 27.93%. The minimum repayment is greater than 2.5% of the balance plus interest or £25. To apply and read more on this card, you can do so here.

Sainsbury’s Bank

best 0% credit card

Though the 0% length is up to 19 months, you may only be accepted and offered 12 months at 0%. The interest on purchases after 0% may either be 21.95% or 29.95%. The minimum repayment is greater than 1% of the balance plus interest or 2.25% of the balance. Alternatively, it may be £5. You need an annual income of £10,000 to be eligible for this card. You are accepted, you will receive 750 bonus Nectar points which is worth £3.75 every time you spend £35+ at Sainsbury’s (excluding fuel). You can gain Nectar points up to ten times in the first two months - what a catch! Unfortunately, if you are self-employed, you will not qualify for this card. For more information or to apply, you can do so** here.**

Virgin Money

best 0% credit card

The best part about this card is that anyone accepted under this scheme will get the full 19 month of 0%. The interest on purchase after the 0% period will be 21.9%. The minimum repayment is greater than 1% of the balance plus interest or £25. You need an annual income of £7,000 or a cumulative household income of £15,000. To apply or read more information, you can do so here.

Barclaycard

best 0% credit card

Anyone accepted on this scheme will receive 18 months at 0%.  The interest on purchase after 0% will be 21.9%. The minimum repayment will either be £5 or a minimum percentage of your main balance if it is less than £5. For more information or to apply, you can do so here.

M&S Bank

best 0% credit card

Anyone accepted on this scheme will receive 18 months at 0%. The interest on purchase after the 0% period will be 19.9%.  Your minimum repayment will either be 2.5% of the balance plus interest or £5. For more information or to apply, you can do so here. If you would like to check your eligibility, you can do so here.

HSBC

best 0% credit card

Anyone accepted on this scheme will receive 18 months at 0%.  The interest on purchases after the 0% period will be 22.9%. Your minimum repayment will be 2.5% of the balance or £5, whichever is higher. It could also be your statement balance if it is less than £5. Alternatively, it will be interest, the default charges and any payment protection insurance premium plus 1% of the principal. For more information or to apply, you can do so here.

Amazon

best 0% credit card

Anyone accepted on this scheme will receive 3 months at 0% and a  £20 Amazon Voucher. The interest on purchases after the 0% period will be 29.95%. Your minimum repayment will be greater than 1% of the balance plus interest or £5. For more information or to apply, you can do so here.

Capital One

best 0% credit card

Anyone accepted on this scheme will receive 4 months at 0%. The interest on purchases after the 0% period will be 34.94%. Your minimum repayment will be greater than 3% of the balance plus interest or £5. For more information or to apply, you can do so here.

Covid-19 Financial  Aid

If you are struggling with your credit card bills or you are starting to fall into more debt, lenders are expected to provide support.

The Financial Conduct Authority confirmed help will be available till 31st March 2021 to consumers struggling with credit card payments and loans. Your lender should offer the option of a payment holiday scheme. This scheme is built to allow a borrower to miss the occasional monthly payments agreed in advance. The period of which you are granted is supposed to be used to sort out your finances. Contact your respective bank to find out more information.

I hope you find this guide informative. Remember, it is important to take control of your finances in order to stay out of debt and build wealth at the same time. That is why Nova is here to solve your worries. We promote smart spending habits, educate you on finance and push you to be the best version of yourself to achieve financial freedom.

Save money now and money will save you later; download Nova now. With Nova, you are a step closer to becoming a millionaire!

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