0% Credit Cards in the UK

How Do No Interest Credit Cards Compare To Fixed-Interest Cards?

Fixed interest cards start charging interest beginning immediately. There is no grace period. If there is a balance at the end of the month (or statement date) the appropriate interest will be applied to the account. Fixed-interest credit cards generally have a lower APR (annual percentage rate) than 0% credit cards. However, according to some financial advisors, this isn’t always true. They advise you to shop for a credit card as you would for anything else. Make sure that the offer you get is what you want.

Many 0% credit cards now offer 0% on transfers as well as new purchases and some offer incentives such as fly miles or points. Still others offer competitive interest rates after the initial 0% interest period. Make sure you know what you are getting into when you choose a credit card. Many companies are good at telling you about the perks up front but the other charges and fees are hidden in the fine print.

In the past there have been annual charges for some credit cards. Be wary of that now. These annual charges have pretty much been eliminated by companies over the past several years. Also be careful of responding to the first credit card company that sends you something in the post. Many send out their offers telling you that you are already ‘pre-approved’ for their card. This is just not true. When you respond to an offer they will check your credit just as any credit card company will. Don’t jump at the first company to send you a mailing. If you feel you need to open a new charge account, check on-line for comparison of different company rates and benefits.

No matter what type of credit card you get, the amount of credit you can have and the interest rate may be determined by your credit history and income. Your credit score is determined, in part, by how much credit you have used of your available credit. The general rule of thumb is to have a balance of no more than half of your available line of credit for each credit card. For example, if you have a credit card with a credit limit of £5000, you should have a balance of under £2500.

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.