# 0% credit cards explained: interest-free spending and transfers

> Credit cards & loans · Last updated 23 June 2026

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## Quick answer

0% credit cards offer a promotional period during which you pay no interest on purchases, balance transfers, or both. They are powerful tools for planned borrowing or debt reduction — but only if you clear the balance before the promo ends.

0% credit cards are among the most useful financial products in the UK when used correctly. They let you spread the cost of purchases or move expensive debt to an interest-free period lasting 12 to 28 months. The danger is treating the 0% period as permanent — when it ends, standard APRs of 20% or more kick in on any remaining balance.

## Key facts

- 0% purchase cards charge no interest on new spending for a set promotional period
- 0% balance transfer cards move existing debt to a new card at 0% — usually with a 2–4% transfer fee
- Money transfer cards send 0% funds to your bank account to pay off overdrafts or loans
- Missing a minimum payment or exceeding your credit limit can cancel the promotional rate immediately

## Types of 0% cards

Purchase cards: interest-free on new spending. Ideal for planned large purchases you can repay within the promo period.

Balance transfer cards: move existing credit card debt to 0%. Best for clearing high-interest card balances systematically.

Money transfer cards: transfer 0% funds to your bank account. Useful for paying off expensive overdrafts or personal loans.

## Using 0% cards effectively

Divide your balance by the number of months in the promo period and set up a direct debit for that amount. On a £3,000 balance with 24 months at 0%, pay £125 per month.

Do not spend on a balance transfer card unless it also offers 0% on purchases — new spending is usually charged at the standard rate.

## When the 0% period ends

Any remaining balance is charged at the card's standard APR — often 20–25%. Mark the end date and plan to clear the debt or transfer again.

Repeated applications for new 0% cards leave hard searches on your file. Focus on reducing the underlying debt rather than perpetually transferring.

## Frequently asked questions

### Can I get a 0% card with bad credit?

Unlikely for the longest 0% periods. Some specialist cards offer shorter 0% periods for people rebuilding credit, but rates after the promo are high.

### Should I pay the minimum on a 0% card?

You must pay at least the minimum to keep the 0% rate, but paying only the minimum will not clear the debt before the promo ends. Pay as much as you can.

### Is a 0% card better than a personal loan?

For short-term borrowing under £5,000 that you can repay within the promo period, 0% cards are usually cheaper. For larger amounts or longer terms, a fixed-rate loan offers more certainty.

## Primary source

https://www.gov.uk/consumer-protection-rights/credit-cards

## Related

- [Balance transfer cards](https://moneyguide.org.uk/banking/balance-transfer-cards-explained/)
- [Minimum payment trap](https://moneyguide.org.uk/credit/minimum-payment-trap/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.