The top ten 0% credit cards

We highlight the 0% cards knocking spots off the competition.

Average credit card APRs have increased from 15.8% to 18.4% over the past five years, according to financial researcher Defaqto.

While this may seem a gloomy statistic, there’s some good news, too - the research also shows that 0% introductory offers have become far more generous over the same period.

Here, I’m going to highlight the very best 0% card deals on the market - and explain how you should (and shouldn’t!) use them.

0% balance transfer - top picks

In July 2006, the longest 0% balance transfer (BT) offer on the market lasted exactly 12 months. Fast-forward five years and the leading BT card now has a 0% term of double that, at 24 months.

Here are my five top 0% BT picks, in order of preference:

As you can see, the first Barclaycard deal is head and shoulders above the rest, as it runs for so much longer.

And at the moment, the Barclaycard transfer fee is pretty much on a par with the others, because of the partial refund being offered.

0% purchase - top picks

Defaqto’s study shows that in July 2006, the longest 0% purchase deal lasted for the same period as the longest 0% BT deal - that’s 12 months.

At the time of writing, however, you can bag a 0% purchase deal lasting a juicy 15 months.

Here are my five top 0% purchase picks, in order of preference:

Here, the two top deals run for the same period of time (15 months).

That means the one that’s best for you is likely to depend on where you shop most often - and therefore where you think you’ll get the most reward points by using the card.

Things to remember

When applying for a 0% credit card - whether it’s a BT or a purchase card - there are several crucial points to bear in mind:

Check your credit score: Providers’ credit scoring procedures have really tightened up in recent years, and you’ll need a very good credit rating to be accepted for one of these cards.

If you repeatedly apply for cards and are rejected, your credit rating could be damaged further. So, if you’re unsure what yours is like, get a free credit report from Experian.

Just make sure you cancel your subscription before the free trial period ends.

Time limited: 0% card deals only ever run for a limited period of time. In each case, I’ve included the representative APR the card charges when that period ends.

You need to make sure these hefty interest charges never apply to you! If you’re not sure you’ll be able to clear your debts during the 0% period, consider taking out a lifetime, low rate credit card instead.

Horses for courses: It’s usually a bad idea to use a 0% BT card for spending, or visa-versa. The reasons for taking out 0% BT cards and 0% purchase cards should be quite different (one gives you the chance to clear your debts, and the other gives you a free loan) so the two generally shouldn’t be mixed together.

Certain ‘all round’ cards do offer 0% BT and 0% purchase deals that last the same period of time.

However, if you apply for one of these, you still need to be sure you can clear that balance transfer - and any new spending - before the 0% period ends.

Separate stables: Finally (to continue the horse analogy) you’re not allowed to transfer debt between two cards within the same ‘stable’.

For example, you can’t switch debt from one Barclaycard to another, or from an MBNA card to a Virgin card (both are in fact operated by MBNA).

More: The best all-round credit cards | Five reasons to pay by card not cash