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Credit cards glossary

Interest free credit card deals

Interest free credit card deals offer consumers the chance to borrow money on a credit card without being charged interest for a set period of time.

There are three main methods of doing this.

Firstly, the standard interest free period on purchases, where if the credit card bill is paid in full each month card, companies often do not charge interest on those purchases for a set period (generally between 30 and 60 days).

Secondly, 0% balance transfers, where a debt can be transferred from another credit card or overdraft to a new card without paying interest on the debt for a set period (generally between six and 15 months). However, many card providers now levy a fee on people transferring funds, so beware the small print.

Thirdly, there are number of 0% on initial purchases deals, which allow credit card-holders to spend on a credit card and not be charged interest on for a set period (generally between six and 12 months).

Consumers need to be careful with the second two types of deal, as the majority of credit card providers will use any money paid off on the credit card to make the 0% balance smaller - while leaving any other spending on the card in place and building up interest.


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