Best Interest-Free Credit Cards

Credit cards are a great way to increase your credit score, reduce debt, and help spread the cost of big-ticket items.

Naturally, you’ll want a credit card with the best interest rate. Interest rates are significant because they tell you how high the cost of borrowing is, and finding an affordable credit card is ideal for any borrower.

That's where an interest-free credit card comes in to save the day; it's the best way to make the most out of your purchases without paying a hefty interest rate. With thousands of credit cards at your disposal, finding the diamond in the rough can be tricky.

In this article, you'll learn about interest-free credit cards and what to look out for, and we've found the best six cards, so you don't have to.

Three Types of Interest-Free Credit Cards

Before you start filling out any credit card applications, you must know that there are three types of interest-free credit cards. You should pick the one that is most suitable for your needs.

The different kinds of interest-free credit cards:

• 0% interest purchase cards: you use a purchase card to make large purchases and spread the cost over the interest-free period.
• 0% money transfer cards: you can transfer money from this card to another bank account to cover an overdraft or other debts.
• 0% balance transfer cards: designed to help consolidate existing credit card debts by allowing you to transfer the balance from one credit card to another.

Depending on the card provider, you can get cards with multiple features.

If you want to consolidate debt, you can get a card to transfer money and balance. Let's explore the three credit cards in depth.

0% Interest Rate Purchase Cards

With an interest-free purchase card, you can make purchases without being charged interest over a specific period. Interest-free periods can vary from three to 12 months.

Some providers may even give you a longer interest-free period if you've got a positive credit history. This period gives you time to pay off the balance. This card is if you want to spread the cost of a big-ticket purchase.

Advantages

✔️ Control your finances with 0% interest on purchases.

✔️ Spread the cost of purchases without worrying about accruing interest.

✔️ Most of these cards allow you to transfer debt from a high-interest credit card.

Disadvantages

❌️ You'll pay interest if you exceed your credit balance.

❌️ Missed payments can break the interest-free deal.

❌️ Your purchase card will revert to a higher annual percentage rate (APR) after the interest-free period ends.

0% Interest Money Transfer Cards

A money transfer card lets you transfer money over to other bank accounts. This card is ideal for reducing debt on high-interest overdrafts on your direct debit card, as it allows you to pay off your debts within an interest-free period.

If you need money and want to avoid taking out a loan, consider applying for an interest-free money transfer card.

Advantages

✔️ Pay off your debts quicker with cheap borrowing.

✔️ Avoid direct debit overdraft charges by transferring your balance from one card to another.

✔️ Most loans have a higher APR than a money transfer credit card, so you could use the balance to pay off any outstanding loans.

Disadvantages

❌️ Not ideal for purchases as they tend to have a high-interest rate on new purchases — consider a purchase card for this.

❌️ Withdrawing cash from this card could lead to charges.

❌️ You may be offered a lower credit limit depending on your credit history.

0% Interest Balance Transfer Cards

A balance transfer card allows you to transfer the credit balance to existing credit cards. If you've got credit card debt with a high APR, you can use this card to pay off the balance, and then you'll be able to pay back the money with zero interest.

Advantages

✔️ Interest-free introductory offer, depending on the credit card provider, this period can last up to a year or more.

✔️ Consolidate debt by paying off your credit cards and moving your debt all to one card.

✔️ Once you've moved all your debt to one card, the balance transfer card can help decrease your credit utilisation over time.

Disadvantages

❌️ You may incur fees for making a balance transfer.

❌️ If you don't pay back the balance within the interest-free period, you could pay back with a higher APR than you started.

❌️ Your application may be rejected if you have a high credit utilisation.

How to Choose the Right Interest-Free Credit Card

Applying for a credit card is a serious commitment that needs careful consideration.

Before applying, you must consider why you need a credit card and how you plan to put it to use.

Take the following into consideration:

• Financial needs: are you looking to make 0% interest purchases, or are you trying to clear other debts on another bank account? You must find a card that suits your needs.
• Suitability: it's a good idea to check your credit record before filling out credit card applications. The UK's top three credit reference agencies are Equifax, TransUnion, and Experian, and they'll show you a breakdown of your credit report. Knowing your rating can help you determine eligibility for a credit card before applying.
• Interest-free period: some credit card providers will offer you a shorter period if you've got a poor credit report. So, you must ensure you can repay your new credit card monthly within this period to avoid paying extra interest.
• Interest rates after the introductory period: if you plan to use one of these cards long-term, you must look at how much the interest increases. Have a look at the charged interest for when the interest-free period expires.
• Type of bank: if you prefer to open an account in person, it's good to consider a traditional bank, or if you're looking for a quicker application and like dealing with finances online or on your phone, consider an online card provider.
• Cash withdrawals: if you want to withdraw cash from a credit card, consider taking out a personal loan for advance cash, as fees can be high.

Knowing that when you apply for a credit card, the provider runs a soft credit search to see if you're eligible is essential. These searches leave temporary marks on your credit report, so it's best to only apply to a few cards simultaneously.

Always check the application requirements to save yourself from potential knock back and unnecessary marks on your report.

Now that you're prepared for the commitment of a credit card, let's explore how we decided which interest-free credit card could work best for you.

How We Choose the Best Interest-Free Credit Cards

Before we share the six best credit cards with smashing interest-free deals, we wanted to let you know how we decided.

Factors we considered:

• Purchase period: to ensure you can use your zero interest-free credit card for as long as possible. The longer the interest-free period, the more time you'll have to make monthly repayments.
• APR rates: although you're paying zero interest, making sure the APR on your cards is manageable is essential, so we found ones with an APR below 30%.
• Balance: your credit card must have an appropriate credit balance for your needs. However, credit limits can vary depending on your credit history.
• Eligibility: you’re not guaranteed to be accepted for every credit card you apply for. However, we've provided a variety that agrees with various applications.
• Benefits: interest-free is a great perk, but it's always a good idea to see if the card provider can offer you more and make the most of your credit card.
• Customer service: if you're stuck or having issues with your credit card, the support team must be accessible.
• Purchase protection: your purchases must be protected under the consumer credit act to ensure safe shopping and protect you from potential fraudulent issues. 

The Six Best Interest-Free Credit Cards

Considering all the above factors, we've compiled a list of the six best interest-free credit cards. We've included options for all three credit types. Let's dive.

1. NatWest Purchase and Balance Transfer Card

NatWest gives you the best of both worlds with purchase and balance abilities within one interest-free credit card. Make purchases worldwide at any Mastercard® location online and in-store with this card.

NatWest Purchase and Balance Transfer Card

Credit Limit

Minimum £250

Representative % APR (variable)

23.9% APR

• 0% interest for 23 months on purchases.
• 0% interest for 23 months on balance transfers.
• Available to UK residents, aged 18+ and earning at least £10K per year.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 23.9% p.a. (variable) your representative APR will be 23.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

2. Barclaycard Platinum Credit Card

The Barclaycard Platinum is predominantly a purchase credit card. However, at a 2.99% fee, you can also transfer balances. Be rewarded by choosing this card with various free subscriptions and opportunities to earn cash back on your purchases.

Barclaycard Platinum Credit Card

Credit Limit

Minimum £50

Representative % APR (variable)

24.9% APR

• 0% interest on purchases for up to 23 months from the date you open your account.
• 0% interest for up to 22 months on balance transfers from the date you open your account. Transfers must be made within 60 days to benefit from the 0% offer.
• 2.99% balance transfer fee (terms apply).

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 24.9% p.a. (variable) your representative APR will be 24.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

3. Tesco Bank All Round Credit Card

If you need help deciding which card type to use, the Tesco Bank All Round Credit Card allows you to make purchases, balance, and money transfers on one card. This card is ideal if you shop at Tesco regularly, as you earn extra points for using this credit card.

Tesco Bank All Round Credit Card

Credit Limit

Minimum £100

Representative % APR (variable)

22.9% APR

• 0% interest on purchases for up to 12 months.
• 0% interest on balance transfers for up to 12 months (1.99% fee).
• 0% interest on money transfers for up to 12 months (3.99% fee).

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 22.9% p.a. (variable) your representative APR will be 22.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

4. MBNA Balance Transfer Credit Card

If you want more time to pay back owed accounts, the MBNA Balance Transfer card is ideal, as it has one of the longest interest-free periods for transferring your balance. With this card, you can also make money transfers as well as balance transfers.

MBNA Balance Transfer Credit Card

Credit Limit

Minimum £100

Representative % APR (variable)

22.9% APR

• Transfer existing credit card and store card balances to just one card.
• Manage your repayments easier in one place and with only one monthly repayment.
• Get an introductory rate. This could save you interest on the balances you transfer and give you longer to repay.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 22.9% p.a. (variable) your representative APR will be 22.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

5. First Direct Gold Card for Purchases

First Direct's Gold Card for Purchases lets you shop interest-free for 12 months (from opening your account) to spread the cost without worrying. At the end of the promotional period the rate on the outstanding balance will change to the standard variable rate that applies at the time.

First Direct Gold Card for Purchases

Credit Limit

Minimum £500

Representative % APR (variable)

24.9% APR

• 0% on purchases for 12 months from account opening.
• Start using your card straight away by adding your card to Apple Pay or Google Pay.
• No annual fee.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 24.9% p.a. (variable) your representative APR will be 24.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

6. M&S Bank Shopping Plus Credit Card

The M&S Bank Shopping Plus Credit Card is ideal for everyday shopping at an M&S store. You can earn points for shopping and simultaneously take advantage of the 18-month zero-interest period.

M&S Bank Shopping Plus Credit Card

Credit Limit

Minimum £500

Representative % APR (variable)

23.9% APR

• 0% interest on purchases for up to 18 months.
• 0% on balance transfers for 15 months, available for 90 days from account opening (2.99% fee applies, minimum £5).
• Collect M&S points every time you use your card.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 23.9% p.a. (variable) your representative APR will be 23.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

Apply for an Interest-Free Credit Card in Three Easy Steps

Now that you know what credit cards are on offer, it's time to apply.

Only apply for a credit card if you're 100% certain it's the right choice. The overall process is quite a simple one:

1. Apply for a credit card: once you've picked one of the six credit cards, visit your chosen provider's website. Check out the card summary, and read all terms and conditions before filling out the application. The credit card provider will run a credit check and ask for personal details such as proof of identification and salary to prove you can repay what you owe.
2. Pay at least the minimum: once you've got your credit card and use the balance, keep on top of your minimum repayments and try to pay more if possible. You may lose your zero-interest deal if you don't make the minimum monthly repayments. So, you may have to pay interest if you don't keep up with payments.
3. Clear your debt on time: avoid high-interest rates by clearing your debt before the interest-free period ends. By eliminating your debts before the deadline, you'll also increase your credit score, which can help you gain a higher credit limit.

Soon enough, you'll have your credit card in hand and ready to start changing your financial situation. Before you go, we've got some valuable tips to remember when using your credit card.

Useful Tips for Using Your Credit Card

Now that you've seen the best credit cards, you must ensure you can control your credit card spending. We've developed some helpful tips for helping you create a good credit history and stay on top of repayments.

• Minimum payments: try to make at least the minimum payment on your card to avoid accruing long-term debt. We recommend paying more than the minimum, but do what you can afford.
• Avoid missed payments: you may incur interest charges if you miss payments, as promotional offers can be void if you've missed a payment. Paying back your credit card balance on time can help increase your credit rating.
• Check fees: if you plan on making a cash withdrawal, check with your credit card provider to avoid surprise fees. Additionally, check if there is a late payment fee, transfer fee or any other type of fee.
• Avoid withdrawing cash: fees for cash withdrawals will vary between credit card providers. Taking money from your credit card is generally not recommended as cash advance fees can work out quite expensively in the long run; personal loans are better for cash withdrawals.
• Pay outstanding balance: if you're facing financial difficulty, at the very least, make minimum monthly repayments. If you're struggling, reach out to your credit card providers, and they can offer you support and advise you on how to avoid missed payments.

With these tips, you can take advantage of a 0% interest rate credit card introductory period and not worry about making interest payments for a little while.

Final Thoughts on Interest-Free Credit Cards

An interest-free credit card is the best way to make the most of your purchases, fix a bad credit score by reducing any remaining debt, and take advantage of a decent interest rate. Whatever your reason for needing a credit card, make sure to look for the best credit card deals. Find the card that does the most for your financial situation.

You can compare credit cards from various financial institutions across the UK at Compare Banks. Compare credit card deals, find the best credit card, and start improving your credit report.

Related Guides:

• Best Credit Cards for Bad Credit in the UK
• How To Get Your First Credit Card: Tips & Advice
• How To Pay Off Credit Card Debt
• Pros & Cons of Personal Loans