An interest free credit card is a type of credit card that charges no interest on balances for a set period of time. These cards can be used for balance transfers, purchases and money transfers.
0% balance transfer credit cards let you transfer the debt from one current credit card to another. After the 0% interest period ends, you will be charged interest on any outstanding balance.
The 0% interest periods can range from six months to 33 months. Many of these cards will charge a fee that's worked out as a percentage of the balance you're transferring. You can get fee-free balance transfer cards, but they typically offer shorter 0% periods.
Interest free purchase credit cards are also known as 0% purchase credit cards.
These credit cards let you spend money without being charged interest for an introductory period.
This interest free period can be anywhere from three months to more than two years. After the 0% credit card purchase period ends you will be charged interest on your borrowing.
Interest free credit cards work by giving you a set period of time when the credit card company won’t charge you interest while you repay what you owe.
These are useful for either paying down debt, or spreading the cost of a large purchase over a period of months, without paying interest. This can make monthly repayments more affordable and thus easier to pay off.
The first step in getting the best deal on interest free credit cards is to shop around and compare interest free credit cards.
But remember the longest 0% deal available to you might well not be the best one for your circumstances.
If you think you can pay off your balance transfer in 18 months, for example, a lower fee is far more important to saving money than an extra 12 months at 0%.
Some of the best interest-free credit card deals offer 0% rates on balance transfers and new purchases for around two years.
This can help you manage your money more easily. You will only have to make one monthly repayment.
But remember, you'll only have one credit limit for both new purchases and balance transfers - so will have to choose how you split that between purchases and existing debts.
You'll also need to ensure you know when each 0% period ends, as combination cards can have a different number of interest free months for purchases and balance transfers.
This could mean you end up paying interest when you hadn't planned to.
Use our credit card finder tool below to find the best interest free credit cards that you’ll qualify for, without damaging your credit score.
You’re more likely to be offered the best credit card deals with the longest interest free periods if you have a good credit history.”
Almost every credit card offers a ‘grace period’ of up to 56 days or up to 55 days between you buying something and it having interest charged on it.
This means that people who pay their bills in full each month won't be charged any interest.
It makes sense when you think about the fact people buy things at different stages of the billing cycle.
If you buy something on the day after a monthly statement is sent, you won't be billed for that item for a month and then have to be given time to pay that bill.
Added up it can mean well over a month between the purchase and interest being charged - with card providers settling on about 56 days as an appropriate maximum time.
The exception is if you use your card at a cash machine or for a “cash like” transaction - for example buying foreign currency or shares - in which case interest is charged from the moment the transaction occurs.
You don't pay interest on credit card purchases until after you're sent a bill.”
Source: Defaqto and Uswitch data, correct as of December 19, 2022
Yes, but that doesn't mean you'll pay nothing to borrow.
First, there may well be a fee attached to a credit card balance transfer or money transfer.
Secondly, if you don't clear your debt withing the 0% period you'll be charged interest on any money remaining on the account at the end of it.
APR stands for "annual percentage rate" - it's the interest rate charged on money borrowed on your credit card.
It reflects the costs you'll pay over the course of a year and includes any standard fees associated with the card.
So if you borrow £100 at 20% APR you'll pay £20 interest on that loan over a year.
In most cases you can avoid paying interest by paying off your credit card balance in full by the due date of every billing cycle.
After the 0% period ends, you will start paying interest on any remaining credit card balance at your card's standard APR.
New spending on the card will also have interest charged on it at your standard APR, unless you clear your bill in full each month.
We compare over 100 credit cards from all of the major banks and credit card providers.
However, we do not compare all the credit cards that are available in the UK.
This is because some credit card providers have offers that are only available exclusively through their own website or branch, or through other comparison websites - in the same way some credit cards are exclusively available through Uswitch.
There are also many credit cards that are only available to people in member organisations and clubs.
When we use the term ‘most popular or ‘popularity’ on Uswitch in reference to credit cards, these cards are ranked by the number of clicks they have received on the site in the past 48 hours.
The most clicked on cards are at the top, with the least at the bottom. This reflects how popular they are with visitors to Uswitch.com. Consequently, this is a good table to look at if you’re interested in seeing which cards most people think are worth getting.
Our best deals on a range of credit card categories by use:
Our top credit cards by type, most popular deals and business cards
Helpful. Great help with my questions.
02 deal not for 02 users
USwitch App for Smart Meters