Spend on your credit card with no interest!

In a bid to attract new customers credit card providers sometimes offer low interest introductory rates on purchases. Offers of interest free credit on purchases made with the card can be anything between three months and a year. Choosing a card which offers 0% interest on purchases for a set period gives you the option to spread payment for items over a decent period of time and can also avoid the high interest rates charged by some credit and store cards.

Before you do sign up to a card with a 0% introductory offer on purchases, you should check how long the interest rate applies for and also what the interest payments will increase to after the low interest period (i.e. the standard APR of the provider).

After the 0% interest on purchases expires, if you have a balance remaining on your card, it may be worth looking at switching to a balance transfer card, which usually offer a 0% interest introductory rate on existing balances transferred from other cards and can provide you with the opportunity to clear what you owe. Almost all of these, however, come with a balance transfer fee as a percentage – usually 2.5% to 3% these days.

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