Interest Free Credit Cards
Get smart with your interest
There is no such thing as an interest free credit card as all credit cards ultimately charge interest. However, you may be able to avoid paying any interest if you are clever about how you use your card, such as being able to pay off the full balance before the payment date or switching to a card with an introductory interest free credit period.
How to stop paying interest
By far the best way to stop paying interest on your credit card is to pay the balance on time. All credit cards have an interest free period (on purchases - not cash advances) built in. So, if you have a splurge in the January Sales, you won't have to start paying for it until between four and six weeks after your purchases. If you are sensible, this can be a smart way of budgeting.
The interest free credit period is different for each credit card company, so compare the small print before you choose which credit card to go with.
Get an introductory interest free credit card
Some credit cards offer interest free credit introductory periods on purchases and / or balance transferts from other credit cards as a way of enticing new customers. Offers can include up to one year at 0% interest. However, you will have to start paying interest again once the interest free period is over so you either choose a card with a competitive interest rate or be prepared to transfer your balance once more.
Transfering your balance to a 0% interest free credit card
Transferring an existing credit card balance can be a smart way to take advantage of 0% introductory rates, although it is best if you can find a card that doesn't charge balance transfer fees. Balance transfer fees are often in the region of 3% of the balance transferred, meaning that the transfer is not really "interest free" even though a 0% APR is quoted. Be very careful about such transfers, as if you are transferring a balance of, for example, £5000, the fees for the transfer will be £150!
Do you need help in finding an interest free credit card?
You can compare the best deals available in the UK at USwitch.