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Credit cards with an interest-free period

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  • Up to 51 days interest free when full balance is paid each month
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 34.0% pa (variable) Representative 34.0% APR (variable)

What are interest-free credit cards?

An interest-free credit card, is a purchase credit card that allows you to make purchases and pay no interest on them for a set period of time. The interest-free period will vary from lender to lender, and will then use its usual interest rate when the interest-free period ends.

Apply for a credit card with an interest-free period from 118 118 Money
Our 118 118 Credit Card comes with an interest-free period of up to 51 days if you pay your balance in full each month. Use our Eligibility check to find out what credit limit we'll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
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What can a cardholder do with an interest-free credit card?

You can do the following things with an interest-free credit card:

Make purchases, without paying interest for a set period of time.

Use it as a payment option if you need to make a big ticket item purchase like a sofa or new dining table, and you don't want to take a loan or store credit.

Get breathing space for bigger purchases with a 0% credit card - it will give you time to pay off your new purchase for a set period of time without building additional interest.

Transfer a balance from a high-interest credit card for a set period of time, without paying interest on the balance you move from another lender.

Move store card balances without paying interest on the balance you move for a set period of time.

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Guaranteed Rate, Credit Limit and Zero Fees*

  • Credit card with an interest-free period on cash and purchases
  • No fees
  • Check your eligibility with no impact on your credit score
Check my eligibility *We do not charge any fees. However, third party vendors may have their own charges. An example of this is an ATM where a usage fee could apply.

How does an interest-free credit card work?

Interest-free credit cards are not exactly the same as standard purchase credit cards which charge interest on balances straightaway. They usually allow you to make purchases at 0% interest for a number of months. To avoid accumulating and increasing your debts, you should aim to pay off as much of your spending as possible before the 0% interest period ends. You should always try and pay off more than the minimum payment whenever you can afford it.

How do I get the best out of an interest-free credit card?

Here are our top tips to get the best out of a 0% credit card.

If you want the flexibility of using an interest-free credit card to move existing, more expensive balances (a balance transfer):

  1. Before you apply for your interest-free credit card, list all of your existing credit and store cards, along with the balances and current interest rates you are paying.
  2. Find out which providers offer interest-free credit cards, and what their rates are once the interest free period has ended. Also, check if there are any balance transfer fees.
  3. Once you have done your research, compare your existing card balance and interest rate with the credit limit and interest rates available from your interest free credit card search.
  4. Check your income and expenditure to work out if you would be able to pay off any balances you transfer, within the interest-free period.
  5. If your calculations show you can, then you will make a long term saving by taking out an interest free credit card.
  6. If your calculations show you could not, then you should see what balance would be left by the time your interest-free period ends to make sure you will still be saving in the long term – if the APR on the new interest-free credit card is lower than on your existing card, chances are you will make a saving – but make sure you do your calculations carefully first. There are a number of sites online where you can check your calculations, such as The Money Advice Service.
  7. Once you’ve got your interest-free credit card and done your balance transfer, make sure you’ve set up a direct debit to get the balance paid off within the interest-free period, assuming your calculations show you can afford it.

If you want to use an interest-free credit card to make a big ticket purchase(s):

  1. Check all other options like 0% interest purchase offers within the store you are making a purchase.
  2. Consider what is available from interest-free credit card providers, how long the interest free period will be, and what the interest rate is once the interest free period ends.
  3. Look at your income and expenditure to see if you could afford to pay off the purchase within the interest free period, so say you are borrowing £500 on a credit card which has an interest free period of 6 months, you’d need to have a spare £83.33 available per month to pay this off. Double the borrowing to £1,000 on an interest-free credit card over 6 months, then you’d need £166.67 a month to pay this off.
  4. When you take out a credit card with an interest-free period to make a big ticket purchase, make sure you get your direct debit set up to cover the amount you can afford to pay each month before the 0% period ends.

Build your credit score with 0% interest-free period credit cards

Many people with a poor credit score — or no credit history at all — can find it difficult to be accepted for a credit card. That's why our guaranteed rate card is designed to be accessible, helping people who may:

  • Struggle to access credit
  • Need to reduce debt gradually
Apply for a credit card with an interest-free period

Want to apply for a credit card with 118 118 Money? As long as you pay your balance in full each month you can benefit from an interest-free period of up to 51 days. 

You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

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Interest-Free Credit Card FAQs

It depends if it is just a straightforward purchase credit card with a 0% period on purchases, or if it is also a credit card that allows you to move a balance from another card. A balance transfer credit card is designed to allow you to move balances from one lender and credit card to another, whereas a 0% card may just offer a 0% purchase rate for a given time.

This said, one of the main reasons people usually take an interest-free credit card is to do balance transfers, so that they can benefit from not carrying an interest bearing debt and pay off their balance quicker. A 0% credit card will give you some breathing space to try and pay off debt from balance transfers without it continually building up debt.

Interest-free credit cards can be good, if used in a certain way – that is, if you pay off all your balance transfers and purchases before the interest-free period comes to an end. That way you won’t incur more debt and additional charges. You should also check that the purchase rate is more favourable than that on your existing credit card if you are doing a balance transfer or closing one card and moving to another.

Our Guaranteed Rate Card has one interest rate for purchases, cash, balance transfers and money transfers. Our credit card also has an interest free period of up to 51 days for all transactions, including cash withdrawals! 

As long as you pay off the balance on your Guaranteed Rate Card in full every month by the payment due date, we will never charge you interest, fees or any monthly fee.

No. There are no other fees with our credit cards. Other providers may charge you for most things, from withdrawing cash to making a late payment by even just a couple of minutes. Here’s what you get from us:

0% Late Payment Fee
0% Balance Transfer Fee
0% Cash Withdrawal Fee
0% Money Transfer Fee
0% Over-limit Fee
0% Emergency Card Replacement Fee
0% Non-Sterling Cash Transaction Fee
0% Non-Sterling Transaction Fee
0% Purchase Fee
0% Returned Payment Fee
0% Statement Reprint Fee
0% Tracing Fee

Yes - you can use our 118 118 Money app to manage your 118 118 Credit Card — it's free to download and available for both iOS and Android mobile devices.

Using the app, you can view your current balance, recent transaction history and previous statements. The app gives you on-the-go access to your account. You can view your current balance, recent transaction history and more, putting you in control of your spending.  Don't have the app? You can also do all of this by logging into your account online.

118 118 Money is regulated by the Financial Conduct Authority and we maintain physical, electronic and procedural safeguards to keep your personal information secure when applying for our credit card with a 0% interest-free period. You are only able to take out one credit card at a time and we will run a credit check as part of your application.

A credit card with an interest-free period can be used to withdraw cash, both in the UK and abroad. If you become eligible for a higher credit limit once you’ve been with us for a while, there's no obligation to accept.

Firstly, complete the Eligibility Check on our website to see if you’re eligible for a credit card from 118 118 Money. You'll also see what credit limit we will offer you, before you apply. The information you need to provide includes:

  • Name
  • Email address
  • Mobile phone number
  • Date of birth
  • Current employment
  • Net monthly income
  • Outgoings
  • Home address
  • Details of your current financial circumstances

Once you've completed our Eligibility Checker, you can apply for our Guaranteed Rate Card online. Finally, we will also ask you to will need to set up a direct debit to complete your application and start using the 118 118 Credit Card.

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Want to apply for a credit card with an interest-free period with 118 118 Money?

If you pay your balance in full each month you can benefit from an interest-free period of up to 51 days.

See if you’ll be accepted before you apply and find out what credit limit we will offer you without affecting your credit rating!

118118Money.com