Why you should apply for a 0% purchase credit card now
People planning to spread the cost of a big-ticket item using a credit card which charges no interest on purchases for a set time are being urged to apply sooner rather than later as interest-free term lengths have dropped to a two-year low and could get even shorter.
The average 0% purchase credit card term has fallen to 335 days, down from 356 a year ago and the lowest since March 2017, according to Moneyfacts, the financial data firm.
Zero per cent purchase credit cards are a good option if you are confident you can pay off the full amount within the interest-free period and can pay at least the minimum statement balance each month.
After the interest-free introductory period, the interest rate soars.
The longest 0% purchase period is now 28 months, down from 31 months this time last year. And there are just three providers to choose from – MBNA, Virgin Money and Sainsbury’s Bank.
Last month Post Office Money cut is 28- month term to just eight months.
Rachel Springall, Finance Expert at Moneyfacts, said: “If consumers are waiting for better deals to surface in this sector they may be waiting some time, as it doesn’t appear that any card providers are prepared to offer a deal sitting way above the leaders. To avoid disappointment, customers may want to apply sooner rather than later, before terms get even shorter.”