These are the best 0% purchase cards for Christmas spending explained

Spreading the cost of Christmas across 0% purchase credit cards can ease the financial pressure (Photo: Shutterstock)Spreading the cost of Christmas across 0% purchase credit cards can ease the financial pressure (Photo: Shutterstock)
Spreading the cost of Christmas across 0% purchase credit cards can ease the financial pressure (Photo: Shutterstock)

by Derin Clark

Christmas can be an expensive time of year, which can particularly impact already financially stretched household incomes. While borrowing money should always be a last resort, spreading the cost of Christmas across 0% purchase credit cards can ease the financial pressure in the run-up to the big day.

A 0% credit card is a credit card that allows you to purchase goods and services and will not charge interest for a pre-set period of time, giving consumers more breathing space to pay off the debt without incurring extra interest charges.

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As many providers are able to send credit cards within seven days of being applied for, it is not too late to get a 0% purchase credit card in time for Christmas. Here we take a look at the best ones for Christmas spending.

The longest interest-free terms available

The longest interest-free term currently being offered in the 0% purchase credit card charts is 26 months, which is being offered by both MBNA Limited and Santander.

MBNA Limited offers 26 months interest-free term on its 0% Transfer and Purchase Credit Card Mastercard. The interest-free term only applies on purchases made within the first 60 days and outside the interest-free offer it charges 20.9% Annual Percentage Rate (APR) on transactions. This card is only available to those with a minimum income of £14,000.

Santander’s All in One Credit Card Mastercard also offers a 26-month interest-free period, which then charges 15.9% per annum outside the interest-free offer. Borrowers should be aware that this credit card charges a £3 monthly fee, however it does include the incentive of 0.5% cashback on purchases. The card is only available to those with a minimum income of £7,500.

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The next best interest-free term is currently being offered by Barclaycard on its Platinum All-Rounder Visa, which has an interest-free period of 25 months. Outside the interest-free period, this card charges 21.9% APR and is only available to those with a minimum income of £20,000.

0% purchase credit cards that offer rewards

A credit card that also offers rewards is a great option for those who use credit cards frequently and who are good at paying off the balance each month. There are a number of 0% purchase credit cards that also offer rewards.

A 0% credit card is a credit card that allows you to purchase goods and services and will not charge interest for a pre-set period of time (Photo: Shutterstock)

One of the most attractive is M&S Bank’s Shopping Plus Mastercard, which offers one point for every £1 spent in Marks and Spencer’s UK stores and online, as well as one point for every £5 spend outside of Marks and Spencer. This card offers 0% interest on purchases for the first 20 months, and then charges 19.9% APR.

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Regular Tesco shoppers may find the Tesco Bank Clubcard Credit Card Purchases Mastercard an attractive card. It offers one point per £4 spend (from a £4 minimum) in Tesco and one point per £8 spent (from an £8 minimum) outside Tesco – points can then be converted into Tesco vouchers. This card offers a 0% interest deal for a 24-month term and then charges 19.9% APR. A minimum income of £5,000 is needed to apply for this card.

Alternatively, Sainsbury’s shoppers may prefer Sainsbury’s Bank Dual Offer Credit Card Mastercard. This card enables consumers to earn two Nectar points per £1 spent on Sainsbury’s shopping and fuel and earns one Nectar point for every £5 spent elsewhere. There is a 22-month interest-free period and charges 20.9% APR. This card is only available to those who have a minimum income of £10,000.

0% purchase cards offering the lowest rates

For those concerned about being able to pay off their credit card debt within the interest-free period, choosing a card with a low APR might be a good option. The lowest APR available on a 0% purchase credit card is currently being offered by TSB’s Advance Mastercard. This card has a three-month interest-free period, after which it charges 7.9% APR.

Consumers should be aware, however, that after the initial interest-free term, interest is charged the day a transaction is made. As such, there is no grace period between making a purchase and incurring interest. It should also be noted that this card is only available to existing TSB customers.

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The next lowest APR comes from first direct on its Gold Card Visa, which offers a 17-month interest-free period and then charges 16.9% APR. While it offers a competitive APR rate on a good interest-free term, this card has the disadvantage of only being available to existing customers only.

A full list of the current cards available can be found on the 0% purchase credit card chart at Moneyfacts.co.uk

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