0% Credit Cards in the UK

What Do Financial Advisors Think Of 0% Credit Cards?

Generally speaking, financial advisors think 0% credit cards can be helpful, but only if used properly. The main problem is that people got themselves into debt situations by using credit cards and it takes an extreme amount of self-control to be able to use the 0% credit cards to help get you out of debt. You need to understand that the initial 0% period will end and after that point your balance will be charged interest at the rate in your initial credit card agreement. It is important to make sure you read the small print. Some companies charge monthly interest, which can really add up over time.

If you are going to use the 0% credit card to consolidate other debt, be sure you check the time-frame that the 0% interest will stop. Financial planners advise to roll your debt over to yet another 0% credit card once the initial time period is over. You can continue to do this until your debt is paid off. You will need to keep close tabs on your credit card.

Financial consultants recommend you do not charge anything on the new credit card, even if the card offers 0% interest on new purchases as well. When you start to have too many credit cards, the risk of abusing them increases. That just leads to a downward debt spiral that you may have a hard time coming out of. Should you always have at least one available credit card for emergencies? Most financial advisors agree, yes. The key is to keep one card with no balance. To keep from charging other things on it, freeze it. They advise to literally freeze your credit card in a small tub of water, in your freezer. When you really need it, you can defrost it and use it. However, it will deter you from making impulse purchases. You must really think through your purchase while the tub thaws. (You can’t quickly thaw it in the microwave oven because that could affect the metal strip)

Make sure you go through your finances using a worksheet. You should know what your debts are as well as your assets. Before you choose a 0% credit card, decide what other credit card debt you will transfer over to it. If your finances are complicated or you’ve had financial trouble in the past, seek the counsel of a qualified financial planner.

Eligibility for offers for 0% credit cards usually (but not always) depend on the credit score of the applicant. If you have a high credit rating, you're much more likely to qualify. It's worth applying, though, because usually they'll offer you a low-interest credit card even if you don't apply for the zero-interest offer.

Some of the top no interest credit cards offered in the UK include Citi Platinum Select Card, which offers 0% APR on balance transfers and purchases for a period of 12 months. They offer ?0 liability on unauthorized purchases and do not charge any annual fee. The 0% card has a regular APR of 10.74%. Chase Platinum Credit Card, too, offers 0% credit cards for 12 months or for 3 months, depending on the credit history of the applicant.

Blue from American Express features a 0% introductory APR up to 15 months and charges no yearly fee. The card's regular APR is about 11.74% and applicants do not have to have an exceptional credit record in order to get this credit offer.

There is also Blue Cash from American Express, which offers 5% cash back on all qualified purchases. This offer for their 0% credit cards is for six months and they do not charge an annual fee.

With Value Miles Platinum Visa Card, (a frequent flier credit card), the card holder can earn one value mile for every dollar spent. With 24,000 miles you earn can get an airline ticket for any nearby destination. They also do not charge yearly fees and the 0% interest applies to the first 12 months.

HSBC Platinum Master Card offers 12 months of 0% APR and it benefits include unlimited purchase protection and insurance for travel accidents. Their regular APR is 10.74%.

Citi Diamond Preferred Rewards Card offers a ?50 gift card and for every ?1 spent on purchases in drugstores, supermarkets and gas stations can card holders get 5 reward points and 1 point for every other purchase. Of a similar type is the GM Flexible Earnings Card, which offers 0% introductory APR for a year which presents a full one-percent cash back choice, otherwise the cardholder can choose a one-percent earnings towards any new GM vehicle.

Other companies that offer 0% credit cards also include Starbucks Duetto Visa for six months and Northwest Airlines- WorldPerks Visa Platinum Card, which has a credit line up to ?7,500 and a 15,000 miles annual WorldPerks travel reduction. The Northwest card does charge an annual fee of ?55, though.