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Compare 0% Purchase Credit Cards

Compare 0% credit cards

Purchase credit cards typically offer 0% on purchases for a fixed period of time. Find a 0% purchase credit card deal that suits your needs from leading UK banks and financial providers and apply online.

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Expert Choice Credit Cards
Balance Transfers Purchases
Credit Card Rate Duration Fee Rate Duration Representative APR Apply
Santander
0.0% 9 Months 3.0% 0.0% 18 Months 18.9%Variable
0% for 18 months on purchases. 0% for 9 months on balance transfers from date of account opening (3% fee applies, minimum £5). No annual fee .
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Santander | Purchase Credit Card

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Tesco Bank
0.0% 3 Months 2.9% 0.0% 18 Months 18.9%Variable
More Info£25 Cash Back
Earn even more Clubcard points. Collect 1 Clubcard point for every £4 you spend on your Clubcard Credit Card  (Must have available credit. 1 point awarded per £4 spent in each purchase transaction (£4 min)). Representative 16.9% APR (variable).
Representative Example: If you borrow £1200 at a purchase rate of 18.94% p.a.(variable), you will pay 18.9% APR Representative (variable).

Tesco Bank | Clubcard Credit Card (Purchase)

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Santander
0.0% 1 Months 5.0% 0.0% 18 Months 16.5%Variable

Get cashback on your everyday spending: 1% cashback at all major supermarkets, 2% cashback at all major departments stores, 3% cashback at all petrol stations and on National Rail and Transport for London travel (on combined spend of up to £300 a month). 0% for 18 months on purchases from account opening. 16.5% APR Representative (Variable). Annual fee and terms apply. If you already have, or if you open a new Santander 123 Current Account, Santander will refund the first year's £24 annual fee on your 123 Credit Card. Offer valid until 31/12/2014. Contactless payments on items below £20. 

Representative Example: If you borrow £1200 at a purchase rate of 12.7% p.a.(variable), with an £24 annual fee, you will pay 16.5% APR Representative (variable).

Santander | 123 Credit Card

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Sainsburys Bank
0.0% 16 Months 3.0% 0.0% 16 Months 16.9%Variable
More Info£25 Cash Back

Sainsbury's Nectar Credit Card lets you collect even more Nectar points when you shop at Sainsbury's. Just remember to pay with your Sainsbury's Nectar Credit Card and swipe your Nectar card. Collect double Nectar points on your Sainsbury's shopping. Collect 2 Nectar points per £1 spent on Sainsbury's fuel. One Nectar point for every £5 spent on your card elsewhere. 0% balance transfers for the first 16 months from account opening (3% balance transfer fee applies). 0% on purchases for the first 16 months from account opening. No monthly or annual fee. No cash advance fee on Sainsbury's Travel Money purchases.

Representative Example: If you borrow £1200 at a purchase rate of 16.94% p.a.(variable), you will pay 16.9% APR Representative (variable).

Sainsburys Bank | Nectar Credit Card

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Halifax
0.0% 15 Months 0.8% 0.0% 15 Months 17.9%Variable
More Info£25 Cash Back
Balance transfer fee refund - refunds part of a 3% fee so overall a 0.8% fee is payable. 0% for up to 15 months on balance transfers (3% fee applies). A long introductory interest free period to help you manage your existing credit. 0% for up to 15 months on purchases. To help spread the cost of any new purchases. The majority of customers will be offered our best rate of 17.9% APR representative (variable) and 0% for 15 months on balance transfers and purchases. Other customers will receive a 0% introductory offer of 13 or 11 months. The APR and length of the promotional offer are dependent on your personal circumstances.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Halifax | All in One Card Credit Card

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Nationwide Building Society
N/A N/A N/A 0.0% 15 Months 17.9%Variable
Nationwide Credit Card - 0% on purchases for 15 months. 17.9% APR representative variable.
Representative Example: If you borrow £1200 at a purchase rate of 17.9% p.a.(variable), you will pay 17.9% APR Representative (variable).

Nationwide Building Society | Credit Card (Purchases)

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Barclaycard
0.0% 18 Months 2.49% 0.0% 14 Months 18.9%Variable
More Info£25 Cash Back
0% interest for 14 months on purchases and 0% for 18 months on balance transfers. A fee of 2.9% will be applied, then reduced to 2.49% by a refund (terms and conditions apply).
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Barclaycard | Platinum Purchase

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Lloyds Bank
0.0% 13 Months 3.0% 0.0% 13 Months 22.7%Variable
More Info£25 Cash Back
Get a choice of rewards for your everyday spend. 0% interest for the first 13 months on purchases and on balances transferred within the first 90 days (3% fee applies). Collect 10 Choice points for every £1 of eligible spend on the Choice Rewards American Express®. Whether it’s cashback, shopping vouchers, magazines subscriptions or even travel rewards through Avios, you’ll get to choose the reward you want, when you want. Get there quicker – with double Choice points on eligible spend¹ for the first 6 months on your American Express Card.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), with an £24 annual fee, you will pay 22.7% APR Representative (variable).

Lloyds Bank | Choice Rewards Credit Card (MCard)

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Avios
0.0% 13 Months 3.0% 0.0% 13 Months 22.7%Variable
More Info£25 Cash Back
A brand new Credit Card Account from Lloyds Bank has taken off – and it’s packed with travel rewards. The Avios Rewards Credit Card Account. No foreign transaction fees. Flight Upgrade Voucher when your spend reaches £7,000 in a year. 0% on balance transfers and purchases for 13 months (balances transferred within the first 90 days, 3% fee applies). Double Avios for 6 months with your American Express® Card.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), with an £24 annual fee, you will pay 22.7% APR Representative (variable).

Avios | Lloyds Bank Avios Rewards Credit Card (MCard)

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Bank of Scotland
0.0% 13 Months 1.0% 0.0% 13 Months 17.9%Variable
More Info£25 Cash Back
Are you looking for 0% on purchases as well as on your balance transfer? Then the Bank of Scotland Platinum Purchase Card could be right for you. 0% for the first 13 months on purchases. 0% for the first 13 months on balances transferred in the first 90 days (3% fee). Balance transfer fee refund - refunds part of a 3% fee so overall a 1% fee is payable. You'll get 0% for the first 13 months on balances transferred in the first 90 days (a fee of 3% applies for each balance transfer). You will also get 0% for the first 13 months on purchases. Your personal APR for purchases will be either 17.9% APR (variable), 21.9% APR (variable) or 23.9% APR (variable). The interest rate for balance transfers will be the same as for purchases.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Bank of Scotland | Platinum Purchase Card

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Lloyds Bank
0.0% 13 Months 1.0% 0.0% 13 Months 17.9%Variable
More Info£25 Cash Back

0% interest for the first 13 months on balances transferred within the first 90 days (1% fee - 3% will be taken initially but an automatic refund will refund 2% of this fee within 60 days of the balance transfer completion). 0% interest for the first 13 months on purchases. Representative 17.9% APR (variable).

Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Lloyds Bank | Platinum Purchase Card

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Tesco Bank
0.0% 12 Months 0.65% 0.0% 12 Months 18.9%Variable
More Info£25 Cash Back
Earn even more Clubcard points. Collect 1 Clubcard point for every £4 you spend on your Clubcard Credit Card  (Must have available credit. 1 point awarded per £4 spent in each purchase transaction (£4 min)). Representative 18.9% APR (variable).
Representative Example: If you borrow £1200 at a purchase rate of 18.94% p.a.(variable), you will pay 18.9% APR Representative (variable).

Tesco Bank | Clubcard Credit Card with Low BT Fee

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Sainsburys Bank
0.0% 12 Months 3.0% 0.0% 12 Months 16.9%Variable
More Info£25 Cash Back
0% on balance transfers for the first 12 months from account opening (3% balance transfer fee applies, refunded in Nectar points). 0% on purchases for the first 12 months from account opening. Collect double Nectar points on your Sainsbury's shopping. Collect 2 Nectar points per £1 spent on Sainsbury's fuel (plus 1 point per litre when you also swipe your Nectar card). One Nectar point for every £5 spent on your card elsewhere.
Representative Example: If you borrow £1200 at a purchase rate of 16.94% p.a.(variable), you will pay 16.9% APR Representative (variable).

Sainsburys Bank | Nectar Credit Card (Nectar Refund)

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AA
0.0% 12 Months 3.0% 0.0% 10 Months 16.9%Variable
More Info£25 Cash Back
Offers 0% on card purchases for 10 months and 0% on balance transfers for 12 months (3% fee). Plus earn reward points every time you spend and double points on fuel. Redeem your points on high street shopping vouchers, cash back or AA products. Example - spend £50 a week on fuel and £100 a week on other purchases a month and earn over £25 cash back in a year or over £50 worth of AA products such as breakdown cover. You must be 21 years old, employed, and earn over £20,000 per year with no recent credit defaults.
Representative Example: If you borrow £1200 at a purchase rate of 16.9% p.a.(variable), you will pay 16.9% APR Representative (variable).

AA | Rewards Credit Card

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Barclaycard
0.0% 31 Months 2.99% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% interest on balance transfers for 31 months from account opening (2.99% handling fee applies). A fee of 3.5% will be applied, then reduced to 2.99% by a refund (terms and conditions apply). 0% interest on purchases for 6 months from account opening. Plus an additional £20 fee refund on balance transfers over £2000 (terms and conditions apply)
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Barclaycard | Barclaycard Platinum With BT (31 Mths)

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Barclaycard
0.0% 30 Months 2.89% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% interest on balance transfers for 30 months from account opening (2.89% handling fee applies). A fee of 3.5% will be applied, then reduced to 2.89% by a refund (terms and conditions apply). 0% interest on purchases for 6 months from account opening. Plus an additional £20 fee refund on balance transfers over £2000 (terms and conditions apply)
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Barclaycard | Barclaycard Platinum With BT (30 Mths)

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Halifax
0.0% 30 Months 3.0% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% for up to the first 30 months on balances transferred in the first 90 days (3% fee). 0% for the first 6 months on purchases. Manage your card online using Online Banking and Mobile Banking. Most customers will be offered our best rate of 18.9% APR (variable) and 0% for the first 30 months on balances transferred in the first 90 days (3% fee applies). Other customers will receive 0% for the first 30 or 27 months with a rate of 21.9% APR (variable), or the first 24 months with a rate of 25.9% APR (variable) on balances transferred in the first 90 days (3% fee applies). All customers will get 0% for the first 6 months on purchases.
Representative Example: If you borrow £1200 at a purchase rate of 18.95% p.a.(variable), you will pay 18.9% APR Representative (variable).

Halifax | Balance Transfer Credit Card (30 Mths)

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Barclaycard
0.0% 28 Months 2.44% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% interest on balance transfers for 28 months from account opening (2.44% handling fee applies). A fee of 3.5% will be applied, then reduced to 2.44% by a refund (terms and conditions apply). 0% interest on purchases for 6 months from account opening.
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Barclaycard | Platinum With Balance Transfer (28 Mths)

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Halifax
0.0% 28 Months 2.45% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
Balance transfer fee refund - refunds part of a 3% fee so overall a 2.45% fee is payable. 0% for up to the first 28 months on balances transferred in the first 90 days (3% fee). 0% for the first 6 months on purchases. Most customers will be offered our best rate of 18.9% APR (variable) and 0% for the first 28 months on balances transferred in the first 90 days (3% fee applies). Other customers will receive 0% for the first 28 or 25 months with a rate of 21.9% APR (variable), or the first 22 months with a rate of 25.9% APR (variable) on balances transferred in the first 90 days (3% fee applies). All customers will get 0% for the first 6 months on purchases. The APR and length of the promotional offer are dependent on your personal circumstances.
Representative Example: If you borrow £1200 at a purchase rate of 18.95% p.a.(variable), you will pay 18.9% APR Representative (variable).

Halifax | Balance Transfer Credit Card

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Lloyds Bank
0.0% 28 Months 2.45% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% interest for up to the first 28 months on balances transferred within the first 90 days (3% fee). Balance Transfer fee refund, 3% fee so overall a 2.45% fee is payable. 0% interest on purchases for the first 6 months after your account is opened. 
Representative Example: If you borrow £1200 at a purchase rate of 18.94% p.a.(variable), you will pay 18.9% APR Representative (variable).

Lloyds Bank | Platinum Balance Transfer Card (28 Mths)

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Barclaycard
0.0% 16 Months 1.5% 0.0% 6 Months 18.9%Variable
More Info£25 Cash Back
0% interest on balance transfers for 16 months from account opening (1.5% handling fee applies). A fee of 1.6% will be applied, then reduced to 1.5% by a refund (terms and conditions apply).
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Barclaycard | Platinum Low Balance Transfer Fee

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Bank of Scotland
0.0% 28 Months 2.45% 0.0% 6 Months 17.9%Variable
More Info£25 Cash Back
0% for up to the first 28 months on balance transfers (3% fee). Refunds part of the 3% balance transfer fee so overall a 2.45% fee is payable. 0% for the first 6 months on purchases. This deal could help you save money on balances transferred within the first 90 days of opening your account (3% fee applies). Most customers will be offered our best rate of 17.9% APR (variable) and 0% for the first 28 months on balances transferred in the first 90 days (3% fee applies). Other customers will receive 0% for the first 25 months with a rate of 21.9% APR (variable), or the first 22 months with a rate of 25.9% APR (variable) on balances transferred in the first 90 days (3% fee applies). All customers will get 0% for the first 6 months on purchases. Please be aware to keep promotional rates you must pay at least the minimum payment by the due date and stay within your credit limit.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Bank of Scotland | Platinum Balance Transfer Card (28 Mths)

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Bank of Scotland
0.0% 15 Months 0.7% 0.0% 6 Months 17.9%Variable
More Info£25 Cash Back
0% for the first 15 months on balance transfers (3% fee). Refunds part of the 3% balance transfer fee so overall a 0.70% fee is payable. 0% for the first 6 months on purchases. Most customers will be offered our best rate of 17.9% APR (variable). Other customers will receive rates of either 21.9% APR (variable) or 25.9% APR (variable). This offer is not available on the high street but applying online only takes a few minutes. Please be aware to keep promotional rates you must pay at least the minimum payment by the due date and stay within your credit limit. Balance transfers can be made from most credit and some store cards, excluding other Bank of Scotland products.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Bank of Scotland | Platinum Balance Transfer Card (15 Mths)

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Lloyds Bank
4.9% 12 Months 3.0% 0.0% 6 Months 11.9%Variable
More Info£25 Cash Back
0% interest on purchases for 6 months. 4.9% p.a. interest for 12 months on balance transfers (3% fee) – if you spend £100 or more in the first 3 months. 11.9% APR representative variable.
Representative Example: If you borrow £1200 at a purchase rate of 11.95% p.a.(variable), you will pay 11.9% APR Representative (variable).

Lloyds Bank | Advance Credit Card

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Barclaycard
N/A N/A N/A 0.0% 3 Months 34.9%Variable
More Info£25 Cash Back

Can help to build your credit rating. Suitable if your financial situation has been improving. You must be over 18 years of age, earn over £3,000 a year and not be unemployed. You must not have been made bankrupt in the last six years – including having an Individual Voluntary Arrangement or Debt Relief Order. You must not have more than one County Court Judgement or recently missed a bill payment. Manageable credit limits from £250 - £1,000. Great for: being able to reduce your interest rate by always paying on time and staying within your credit limit. 0% interest on purchases for 3 months from account opening.

Representative Example: If you borrow £1200 at a purchase rate of 34.9% p.a.(variable), you will pay 34.9% APR Representative (variable).

Barclaycard | Initial Credit Card

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Tesco Bank
0.0% 30 Months 2.9% 0.0% 3 Months 18.9%Variable
More Info£25 Cash Back
Earn even more Clubcard points. Collect 1 Clubcard point for every £4 you spend on your Clubcard Credit Card  (Must have available credit. 1 point awarded per £4 spent in each purchase transaction (£4 min)). Representative 18.9% APR (variable).
Representative Example: If you borrow £1200 at a purchase rate of 18.94% p.a.(variable), you will pay 18.9% APR Representative (variable).

Tesco Bank | Clubcard Credit Card (Balance Transfer)

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Santander
0.0% 29 Months 3.0% 0.0% 3 Months 18.9%Variable
 0% for 29 months on balance transfers. 3% balance transfer fee applies (minimum £5). 0% for 3 months on purchases.
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Santander | Long Term Balance Transfer Credit Card

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Halifax
0.0% 24 Months 1.5% 0.0% 3 Months 18.9%Variable
More Info£25 Cash Back
0% for up to the first 24 months on balances transferred in the first 90 days (3% fee). Minimum £100 balance transfer. Most customers will get 0% for the first 24 months on balance transfers, at our best rate of 18.9% APR (variable). Others will get 0% for the first 21 or 18 months at a rate of 21.9% APR (variable), or the first 15 months at a rate of 25.9% APR (variable). Refunds part of the initial 3% balance transfer fee so overall a 1.50% fee is payable. You'll initially be charged a 3% fee for each balance transfer. We'll then refund 1.50% of each balance transferred to us within 90 days, so overall you will pay a fee of just 1.50%. 0% for the first 3 months on purchases. Your purchase interest rate will be the same as the balance transfer interest rate.
Representative Example: If you borrow £1200 at a purchase rate of 18.95% p.a.(variable), you will pay 18.9% APR Representative (variable).

Halifax | Balance Transfer Credit Card (24 Mths)

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Santander
0.0% 17 Months 0.9% 0.0% 3 Months 18.9%Variable
0% for 17 months on balance transfers. 0.9% balance transfer fee applies (minimum £5). 0% for 3 months on purchases.
Representative Example: If you borrow £1200 at a purchase rate of 18.9% p.a.(variable), you will pay 18.9% APR Representative (variable).

Santander | Low Balance Transfer Fee Credit Card

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Nationwide Building Society
0.0% 26 Months 2.4% 0.0% 3 Months 17.9%Variable
Nationwide Credit Card - 0% on balance transfers for 26 months (2.4% balance transfer fee applies, minimum £5.00), plus 0% on purchases for 3 months. 17.9% APR representative variable.
Representative Example: If you borrow £1200 at a purchase rate of 17.9% p.a.(variable), you will pay 17.9% APR Representative (variable).

Nationwide Building Society | Credit Card (Balance Transfer)

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Bank of Scotland
0.0% 24 Months 1.5% 0.0% 3 Months 17.9%Variable
More Info£25 Cash Back
Balance transfer fee refund - refunds part of a 3% fee so overall a 1.5% fee is payable. 0% for the first 24 months on balances transferred in the first 90 days (3% fee). 0% for the first 3 months on purchases. Most customers will be offered our best rate of 17.9% APR (variable) and 0% for the first 24 months on balances transferred in the first 90 days (3% fee applies). Other customers will receive 0% for the first 21 months with a rate of 21.9% APR (variable), or the first 18 months with a rate of 25.9% APR (variable) on balances transferred in the first 90 days (3% fee applies). All customers will get 0% for the first 3 months on purchases.
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Bank of Scotland | Platinum Balance Transfer Card

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Lloyds Bank
0.0% 24 Months 1.5% 0.0% 3 Months 17.9%Variable
More Info£25 Cash Back
0% interest on balance transfers for 24 months from account opening. Effective 1.5% Balance Transfer Fee (initially 3% will be taken and then 50% of this refunded within 60 days to equal an effective 1.5% fee). 0% interest on purchases for 3 months from account opening.

Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

Lloyds Bank | Platinum Balance Transfer Card (24 Mths)

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TSB
0.0% 15 Months 0.8% 0.0% 3 Months 17.9%Variable
More Info£25 Cash Back
0% interest for up to 15 months on balances transferred within the first 90 days (3% fee). Balance Transfer fee refund - refunds part of a 3% fee so overall a 0.8% fee is payable. 0% on purchases for the first 3 months. Representative 17.9% APR (variable). 
Representative Example: If you borrow £1200 at a purchase rate of 17.95% p.a.(variable), you will pay 17.9% APR Representative (variable).

TSB | Platinum Balance Transfer Card

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Post Office Ltd
0.0% 18 Months 2.98% 0.0% 3 Months 17.8%Variable
More Info£25 Cash Back
Post Office® Credit Card. The credit card for everyday use home and abroad. 17.8% APR Representative (variable). The Post Office Credit Card offers you a range of benefits whether you use it at home or abroad. 17.8% APR Representative (variable).
Representative Example: If you borrow £1200 at a purchase rate of 17.8% p.a.(variable), you will pay 17.8% APR Representative (variable).

Post Office Ltd | Platinum Card

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MoneyExpert Ltd is a Credit Intermediary and receives commission payments for all credit cards referrals made on our website. This does not apply to Tesco Bank, NatWest and Royal Bank of Scotland. The rates displayed in this table are updated on a daily basis.

Purchase credit cards

Credit cards can offer a quick and convenient way to pay for goods and services. They can be used as a handy alternative to cash or cheques and can also be used to make purchases at a distance, whether online or over the phone. Some cards offer special interest rates on purchases, usually for a set length of time. These are generally referred to as purchase credit cards.

What are purchase credit cards?

Purchase credit cards are technically speaking normal credit cards. They follow the same rules and can be used for all the same things – for accessing credit and making purchases in person, online, over the phone or via mail order. All credit cards can be used to make purchases but when people refer to purchase credit cards they generally mean cards that have a particularly low interest rate on purchases over an extended period of time.

When you take out a credit card you essentially gain access to a pre-agreed credit limit. In essence you borrow money every time you look to make a payment on your credit card. There will be a limit, known as your credit limit, on the amount you are allowed to borrow on your credit card. The majority of cards have interest free periods available on purchases. If you pay the balance in full each month, you will usually pay no interest on the account.

Purchase credit cards have an introductory or promotional rate that lasts a lot longer. This could be 3 months, 6 months, a year or longer. Many purchase credit cards have a purchase interest rate of 0%.

What are the benefits

People who tend to pay off their balance in full each month will not usually pay any interest on their credit cards. Those who usually owe something will have to pay interest on whatever balance remains. With a 0% purchase credit card, they will not have to pay interest on purchases made during the interest-free period.

A purchase credit card can therefore be useful for regular monthly spending where people do not always pay off their balance in full. It could also be used to make a larger purchase up to the value of the card's credit limit. With a 0% card this could effectively mean you are being loaned a substantial sum of money interest-free, as long as you pay the balance in full by the end of the interest-free period. Credit cards are not generally recommended as a source of long-term borrowing, as their overall interest rates are often higher than other types of credit such as personal loans. Used sensibly however, a purchase credit card can be an ideal way to spread the costs of a purchase.

Purchase credit cards can also be more flexible than personal loans. Instead of loaning a fixed amount upfront you are given access to a certain amount of credit that you can use if and when you want to.

Is there a limit to the size of purchase I can make?

As with other credit cards, a purchase credit card will have a credit limit. You can spend as much as you like within this credit limit. If, for example, you have a credit limit of £3,000 you could make a single purchase of £3,000, three purchases of £1,000 each or any other combination that totals £3,000 or less. As you pay off your balance you will free up credit that will once more be available to spend and, as already noted, you are not obliged to use any or all of the credit available to you.

A purchase does not necessarily mean a transaction that is used to buy a physical item or goods. Ifs you pay for a service, buy a ticket for an event or book a holiday, these are all counted as purchases. Other types of spending, such as obtaining a cash advance (where you get money from an ATM with your credit card) or making a balance transfer (where you transfer the money you owe from one credit card to another) are not counted as purchases.

What are the drawbacks?

As with all credit cards, purchase credit cards should always be used responsibly. If you are able to pay off your balance in full by the end of the interest-free period, you will not have to pay any interest on purchases made in that time. After that time any remaining balance will revert to the card's standard rate. It's worth noting that purchase credit cards may have a higher standard interest rate (or APR) than other comparable cards. When you compare purchase credit cards, the length of the interest-free or promotional period and the card's standard interest rate can both be important factors.

A card that has a 0% rate on purchases may have different rates for other types of spending such as cash advances and balance transfers. Making a cash advance on a credit card can be particularly expensive. If you have different parts of your balance that are subject to different rates, the one with the lowest rate is usually paid first. This means that if you make a purchase at 0% then make a cash advance, any payments you make against your balance will be taken from the purchase balance first. Interest will still be paid against the more expensive cash advance balance until it is paid off.

You should also be aware that, even if you do not pay off the balance in full each month, you should still pay the minimum amount due. Failure to do so could trigger a clause that causes the entire balance to revert to the card's standard rate. Many customers find it useful to set up a Direct Debit that covers at least the minimum due each month. This means you should never miss a payment accidentally.

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