How to find an interest-free credit card
Tired of paying credit card interest? Well, there are ways to play the system and take control of your credit card.
We can help you compare and switch cards with our free and impartial service. We help you sort through the hundreds of cards on the market to find the best one for your needs:
In the meantime, here are a few ideas for cutting your interest.
Pay your bills on time
All credit cards have an interest free period on purchases that lasts between about 28 to 56 days. But note that the period relates to when your statement is compiled, not when the purchase is made. So, two purchases that appear on the one statement accumulate interest at the same time, even if you bought one several weeks before the other.
Try to find a credit card with a long interest-free period and pay your bills in full before the interest kicks in. Then you’ll effectively have an interest-free card.
Transfer your balance to an interest-free credit card
Got an outstanding balance on one or more cards? Transfer your balance to a card that offers an introductory interest-free period and watch your debt disappear. You could get a 0% introductory rate for up to 12 months (sometimes even up to 18 months). That means you could make a big dent in your debt, instead of just paying off the interest.
If you want to play the ‘card tart’ game, you could transfer your balance to another card once your interest-free period runs out. And then again. And again. Or you can get a low interest rate for the life of your balance.
Introductory interest-free offers on purchases
Let’s pretend it’s Christmas. You need more money than usual for all those gifts, but you might be unable to repay it for several months. Instead of putting them all on the same old credit card, get a new card that offers an introductory interest-free rate. Basically, it’ll be an interest free loan that can last from anywhere between about three and twelve months.
But, watch out – when the good times come to an end you will be hit with the card’s standard interest rate. So make sure you either pay your balance off before the period ends or get a card with a good standard rate. Or, you could transfer your balance to a card offering an introductory 0% rate on balance transfers.
Get a low standard interest rate
If you’re not planning to pay your balance before the introductory period ends and can’t be bothered moving your card around from introductory offer to introductory offer, then you might be better off just opting for an all-round low rate. You could get a rate as low as about 5%, which is a dream compared to the charges some cards have (some go up to 30%).
Not sure what to get?
No worries. We’ll help you decide. When you compare cards on buy.co.uk, we ask you a few questions about how you plan to use your card. Then we can calculate the best cards for your needs. You can make an accurate comparison in minutes.