What are 0% purchase credit cards?
Zero per cent purchase offers are great for those wanting to pay no interest for a short period of time. With a 0% purchase offer, you will pay 0% interest on purchases during the introductory period. So any purchases you make on the credit card will not accumulate interest for the length of the offer.
If you have a six month introductory offer, you will pay no interest for the first six months of having the card, if you have a nine month introductory offer, you will pay no interest for the first nine months, and so on.
Purchase offers are available on a wide variety of credit cards, from rewards and prestige cards, to low fee and low rate cards. You may even find purchase offer credit cards with other offers attached, such as balance transfer offers, bonus rewards points offers, and annual fee discounts.
How to choose the best
If what you want most is the 0% purchase offer, then compare the introductory offers first. The length of the offer will vary depending on the credit card and the card provider, so compare your options to find the most suitable offer for you.
Most 0% purchase offers last from five to twelve months, although there are cards that offer more and less. Think about what you plan to use the card for, and try to find a card that matches your needs. If you have a big purchase to make and you know how long it will take to pay it off, find a card that gives you enough time to do this.
If you plan on keeping the card long term, then you will also need to compare the card’s other features. Think about how much you will pay in annual fees, and whether it is worth it. Find out what the reversion rates are, and whether they are affordable.
If it is a Gold, Platinum or rewards card, think about whether the rewards and perks are suitable, and whether they are worth what you are paying for the card. If the card has any other introductory offers, make sure you know when they end, and what happens when the offer is over.
Avoid the biggest mistakes
The biggest mistake you could make with a 0% purchase offer is to overspend and not be able to pay off your debts before the introductory offer period ends. Many people get carried away with their spending when they know they don’t have interest to worry about, and it can be easy to rack up a sizable debt.
If the offer ends and that debt has not been paid off, you could find that the unpaid balance starts attracting much higher rates of interest. This can make it extremely difficult to pay off what you owe, and the debt will keep growing.
When it comes to introductory offers such as those with 0% on purchases, you need to find out all the relevant details before you apply. This means finding out how long the offer lasts, what the reversion rate is, how much you will pay in annual fees, and so on. While the offer may seem too good to be true, the card itself could be a bad choice.
If you want to take advantage of a 0% purchase offer, find an offer that suits you, a card that suits you, and then keep track of your spending. It can help to make a budget to pay off what you owe, and to set reminders so you know when the offer is due to end.