Zero percent purchase credit cards are the finest way to borrow money without being charged any interest for a specific amount of time. These cards allow you an interest period for as long as 16 months and few companies like the Post Office even extend it to a 27 month period. With these cards, you can make big purchases without worrying about interest rates as long as you repay the amount within the interest free time frame.
Advantages of 0% purchase credit cards:
You can make big purchases and spread the cost of it over the interest free period. This way you can buy that item which may not be affordable at the moment. You no longer need to wait as you can essentially manage your finances better.
You can book costly flights and need to pay only the face value of the flight. And not a single penny of interest. That’s a wonderful thing. Isn’t it?
0% purchase cards also benefit you by allowing payment protection over purchases made online or otherwise. If you buy anything between £100 and £30,000 then your purchases will be guarded against damage, wrong delivery of items and more. Even if the company goes bust, you can still enjoy the purchase without any hassle or get a refund if your order has not been filled.
Basic disadvantages of 0% purchase cards:
Once you cross the free interest period, you will be charged with an interest rate which may be heavy on your pocket.
The Annual Percentage Rate (APR) for purchase cards is 18%. So, if you end up having balance on the card at the end of the year, then the APR would turn out to be quite costly.
Credit card companies reserve such cards for people with excellent credit history. So, those with limited or poor credit histories may face a tough time to get an approval for 0% purchase credit cards.
If you withdraw cash through these cards, then you are liable to pay high interest and additional fees.
To sum up, you can leverage the benefits of 0% purchase credit cards and enjoy big purchases without worrying about its payments.