Pay no interest on spending for 20 months.
Halifax has launched a new credit card offering the longest 0% period on purchases ever!
The Halifax Purchase Credit Card will not charge any interest on purchases for an incredible 20 months from when the card is first taken out. After that it carries a representative APR of 18.9%.
The card also offers a six-month 0% period on balance transfers.
If you don’t have a perfect credit record you may still be accepted, but offered a slightly lower 16 months of 0% interest on spending.
Let’s take a look at how it compares to the rest of the market.
|
Credit card |
0% period on purchases |
Representative APR |
|
Halifax Purchase Credit Card |
20 months |
18.9% |
|
19 months |
18.9% |
|
|
18 months |
18.9% |
|
|
18 months |
16.5% |
|
|
Clydesdale Bank Gold MasterCard |
17 months |
18.9% |
|
Yorkshire Bank Gold MasterCard |
17 months |
18.9% |
|
16 months |
18.9% |
|
|
16 months |
18.9% |
|
|
16 months |
18.9% |
|
|
16 months |
16.9% |
So while Halifax now clearly offers the top 0% purchase card around, there’s plenty of competition offering around a year and a half free from interest.
The pros and cons of a 0% purchase credit card
The benefits of a 0% purchase credit card are very simple. You get to pay off your balance in chunks, without worrying about racking up interest.
They are best used when you’ve got some big purchases coming up, as you can then clear that debt in stages rather than trying to do it all in one go.
However, the fact that you aren’t being charged interest can prove a temptation to overspend for some borrowers. So it’s a good idea to work out exactly how much you will need to pay each month in order to clear the balance before you start paying interest, set up a monthly standing order for that amount, then stick the card at the back of the drawer so you won’t be tempted to use it.
More on borrowing:
The best balance transfer credit cards
The best cashback credit cards