0% APR and Interest-Free Credit Cards in the UK: A Guide

If you’ve ever seen adverts for 0% APR credit cards or wondered what does 0 APR mean?, you’re not alone. For many in the UK, these cards can be a useful financial tool, offering a period where you don’t pay interest on purchases, balance transfers, or sometimes both. But understanding exactly how zero interest credit cards work — and how to use them responsibly — is key to avoiding hidden costs and making the most of these offers.

This guide will explain what 0 percent credit cards are, how they work, the different types available, and how to find the best 0 transfer credit card or interest free purchase credit card for your needs. We’ll also cover the risks, compare UK providers, and highlight alternatives if a credit card isn’t right for you.

What Does 0% APR Mean?

APR stands for Annual Percentage Rate — the total yearly cost of borrowing, including interest and certain fees. Normally, when you spend on a credit card, interest is charged if you don’t pay off your balance in full each month.

A 0 percent APR credit card offers a temporary period where you pay no interest on your balance. Depending on the card, this may apply to:

• Purchases (spending in shops or online)

• Balance transfers (moving debt from another card)

• Money transfers (moving funds into your bank account)

For example, if you buy £500 worth of goods on a 0% purchase credit card with a 20-month offer, you can spread the cost over that time without paying interest — provided you make at least the minimum payments and clear the balance before the 0% period ends.

Types of 0% Credit Cards in the UK

Not all 0 interest credit cards are the same. Understanding the differences helps you pick the right one.

0% Purchase Credit Cards

A 0 percent purchase credit card gives you an interest free period on new purchases. This can be useful if you need to make a large purchase — such as furniture, travel, or electronics — and want to spread the cost without interest.

Example: A card may offer up to 24 months interest free on purchases.

0% Balance Transfer Credit Cards

If you already have credit card debt, a 0% balance transfer card allows you to move your balance onto a new card with no interest for a set time. This can save you money compared to paying standard credit card rates, which are often 20% APR or higher.

Most cards charge a transfer fee (usually 1–3% of the amount transferred). For example, moving £2,000 with a 2% fee means you’ll pay £40 upfront, but you could save hundreds in interest.

You can compare the best balance transfer cards on sites like MoneySavingExpert or Which?.

0% Money Transfer Credit Cards

A money transfer card lets you move funds from your credit card into your bank account, usually at 0% interest for a limited time. These can help with unexpected bills or consolidating overdrafts. A transfer fee normally applies.

Combined Cards

Some cards offer 0% on both purchases and balance transfers, though the promotional periods may be shorter than specialist cards. These are versatile but may not be the cheapest option overall.

How Long Does 0% APR Last?

The interest free period varies by provider. UK cards typically offer:

• Up to 24–30 months on balance transfers

• Up to 20–24 months on purchases

• Up to 12 months on money transfers

After the promotional period ends, standard interest rates apply — often above 20% APR. This is why it’s vital to clear your balance before the deal ends.

What Does 0% on Purchases Mean?

When a card advertises 0% on purchases, it means you won’t pay interest on new spending during the promotional period. For example, if you spend £1,000 on a zero purchase credit card with a 20-month offer, you could repay around £50 per month without paying any interest.

However, missing payments or going over your limit can cause you to lose the offer, reverting your balance to the standard APR.

Who Can Get a 0% Credit Card?

Lenders in the UK base approval on your credit history and income. The best interest free credit card offers usually go to applicants with good to excellent credit scores.

If you have poor credit, you may still be approved but with shorter 0% periods or higher fees. You can check your eligibility without harming your score using comparison sites like Experian, ClearScore, or MoneySuperMarket.

Pros and Cons of 0% Credit Cards

Benefits

• Spread payments interest free over months or years.

• Pay down debt faster with balance transfers.

• Flexibility for large purchases or emergencies.

• Many cards also offer rewards like cashback or loyalty points.

Risks

• High revert APRs once the 0% period ends.

• Fees on transfers or late payments.

• Temptation to overspend, leading to unmanageable debt.

Using these cards wisely requires discipline: make repayments on time, stay within your limit, and avoid new debt you can’t repay.

Best Practices for Using 0% Credit Cards in the UK

1. Pay at least the minimum each month (set up a direct debit to avoid missed payments).

2. Clear the balance before the 0% period ends to avoid interest.

3. Check fees — especially on balance and money transfers.

4. Avoid cash withdrawals as these are usually excluded from 0% offers.

5. Don’t apply for too many cards at once, as multiple applications can hurt your credit score.

Where to Compare UK 0% Credit Cards

Before applying, always compare offers. The following UK resources are reliable starting points:

• MoneySavingExpert – Best 0% Cards

• Which? Credit Card Comparisons

• MoneySuperMarket Credit Cards

These sites update offers regularly, showing the longest 0% deals and the lowest fees.

Alternatives to 0% Credit Cards

If you don’t qualify for the best deals, or if you’re worried about overspending, consider:

• Credit union loans – lower rates and safer borrowing (Find Your Credit Union).

• Personal loans – fixed repayments and rates.

• Overdrafts – useful for short-term borrowing, but check fees.

• Buy Now, Pay Later (BNPL) – sometimes interest free, but risky if repayments are missed.

FAQs About 0% Credit Cards

What does 0 APR mean?
It means you won’t pay any interest on your balance for a set period.

Do 0% cards really have no fees?
Some have no annual fee, but balance/money transfer fees often apply.

Can I get a 0% card with bad credit?
It’s possible, but the 0% period may be shorter. Consider credit builder cards first.

What happens after the 0% period ends?
The balance reverts to the standard APR, which can be 20–30% or more.

What’s the best 0 transfer credit card in the UK?
This changes regularly — check MoneySavingExpert for updated recommendations.

Conclusion

0 percent APR credit cards can be powerful tools for managing spending or consolidating debt — if used responsibly. They allow you to spread payments or clear balances without interest, saving you money. But they also carry risks if you miss payments or fail to repay before the promotional period ends.

If you’re looking for the best 0% interest credit cards UK, always compare offers, check the fees, and consider your ability to repay. Used wisely, these cards can provide real financial flexibility and help you manage your money better.