New credit cards from Clydesdale and Yorkshire Banks offer almost a year and a half free from interest on your spending. How do they compare?
Clydesdale and Yorkshire Banks have launched new Gold MasterCards, offering 0% interest on purchases for an initial period of 17 months.
The cards also offer 0% interest on balance transfers for 12 months (with a 3% transfer fee) and boast a representative APR of 18.9%.
How do they rate?
Here’s how they compare to the rest of the top 0% purchase credit card market.
|
Credit card |
0% period |
Representative APR |
|
18 months |
18.9% |
|
|
18 months |
18.9% |
|
|
18 months |
16.5% |
|
|
Halifax Purchase Credit Card |
17 months |
16.9% |
|
Clydesdale Bank Gold MasterCard |
17 months |
18.9% |
|
Yorkshire Bank Gold MasterCard |
17 months |
18.9% |
|
16 months |
16.9% |
|
|
16 months |
18.7% |
|
|
15 months |
17.9% |
|
|
15 months |
16.9% |
|
|
15 months |
17.9% |
|
|
15 months |
15.9% |
|
|
14 months |
18.9% |
*Only available to Nationwide current account holders
So while the Clydesdale and Yorkshire Bank cards are very competitive, they still fall behind the three cards at the top of the table, which all offer 18 months of 0% interest.
[SPOTLIGHT]What’s more, with two of them, you get more than just 0% interest to enjoy too.
Cashback on spending
The Santander 123 Credit Card offers you either 1%, 2% or 3% cashback on the money you spend, depending on where you spend it. So you get 1% for every penny spent at supermarkets, 2% at department stores and 3% at petrol stations and on National Rail/Transport for London spending.
However, it’s worth bearing in mind that there is an annual fee for this card of £24. You can avoid the fee for the first year though if you take out a Santander 123 current account, which pays cashback on your direct debits. It has its own £24 annual fee to pay though.
Clubcard points!
There’s also the Tesco Clubcard for Purchases credit card to consider. It not only offers 18 months of 0% interest on your spending, but also allows you to rack up Clubcard points on the money you spend, no matter where you spend it.
You earn five Clubcard points for every £1 you spend in-store or at Tesco petrol stations and one point for every £4 you spend elsewhere.
I can speak from experience when I say that these rewards very quickly build up – I’ve been using a Tesco Clubcard for four years now and the points I’ve earned on my spending have helped cut the cost of everything from holidays to days out.
Using a 0% purchase card properly
A credit card that gives you a break from interest charges on your spending can be a lifesaver if you have a big purchase or two coming up. You can pay off the debt in manageable chunks, safe in the knowledge that every penny you repay is going directly towards reducing the size of your debt.
However, they can also be a recipe for disaster if you don’t use them properly. It can be very tempting to spend more than usual, putting off thinking about how you will pay it off for another day. As a result, you can easily end up with a big chunk of debt at the end of your 0% period, unable to pay it off and faced with a large interest rate.
Mark your calendar with exactly when your 0% deal comes to an end, and work out exactly how much you need to pay each month in order to pay it off.
Now if you go for a 0% card that offers rewards, whether that’s cashback or loyalty points, then it makes sense to put as much of your usual monthly spending on the card as possible. Just make a note of how much you need to pay to clear that month’s normal spending, as well as your regular payment to pay down the debt from the large purchases.
Compare 0% purchase credit cards
More on borrowing:
The best cashback credit cards
The best 0% money transfer credit cards