Credit card: Best 0% purchase & balance transfer deals to use for Christmas spending
CREDIT card deals may be sought out by many at the moment as December quickly approaches and consumer's ramp up their Christmas shopping. Fortunately, new research from Defaqto has done the hard work for shoppers, as they've collated the best zero percent purchase and transfer deal offers available.
Credit card usage is set to ramp up in the coming months as Christmas approaches and coronavirus may have left shoppers with limited income. Additionally, some may choose to use credit cards over their debit accounts given the extra protection afforded to purchases made on credit.
Defaqto, the financial information and technology experts, have looked into the best credit card options ahead of this demand and found the best results for two distinct categories.
The best buy zero percent purchase credit cards
For those needing to spread costs over a long time period, interest free purchase deals will likely be helpful.
According to Defato’s research, the best deals on these kinds of cards can be found with some of the UKs biggest banking giants.
There aren’t many of these zero percent offers available this year, with there being just 71 in total compared to 81 a year ago, but the following can still help shoppers make the most of their purchasing options:
- Santander: All in One Credit Card (has a £3 monthly fee) – 26 months purchase rate duration
- Tesco Bank: Clubcard Plus Credit Card – 24 months purchase rate duration
- M&S Bank: Shopping Plus Credit Card – 20 months purchase rate duration
- Sainsbury’s Bank: Dual Offer Credit Card – 20 months purchase rate duration
- TSB: Platinum Purchase Card – 20 months purchase rate duration
- Barclaycard: Platinum Balance Transfer – 18 months purchase rate duration
- HSBC: Purchase Plus Credit Card – 18 months purchase rate duration
- MBNA Ltd: Dual Offer Credit Card – 18 months purchase rate duration
- Tesco Bank: Clubcard Credit Card (Purchase) – 18 months purchase rate duration
- Lloyds Bank: Platinum Balance Transfer Card – 17 months purchase rate duration
READ MORE: Martin Lewis warns against debt consolidation - credit card fears rise
On top of this, Defaqto looked into the best options for those who already have credit card debt
The best buy zero percent balance transfer credit cards
These products allow new credit cards to take on existing debt from other cards and will not charge interest on it.
The interest-free period usually only lasts for a certain amount of time and beyond this, interest will usually be charged on any remaining debt.
Again, the number of deals have dropped over the last year, with just 69 remaining today from 93 a year ago, but the following can be taken advantage of without a fee imposed:
- Sainsbury’s Bank: No Balance Transfer Fee Credit Card – 18 months balance rate duration
- Santander: Everyday Credit Card – 18 months balance rate duration
- Barclaycard: Platinum Balance Transfer – 15 months balance rate duration
- Danske Bank: Standard Credit Card – five months balance rate duration
- TSB: Advance Credit Card – three months balance rate duration
Katie Brain, a Consumer Banking Expert at Defaqto, commented on the need for these kinds of deals given the economic environment consumers find themselves in: “This is a festive season like no other and after the year we have had, many are planning to make the most of the holidays and treat themselves and their loved ones.
“It is easy to get carried away with the festive spirit and end up spending more than you planned to, or worse - more than you can afford.
“It is important to remember that a credit card is still money that will have to be paid back and to make sure that you don’t take on any debt that you can’t afford.
“For those who already have credit card debt, interest free balance transfer deals can be a useful tool to pay off the debt without building up more interest.
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“The best deals on the market tend to only be available to those with an excellent credit rating, so where there is the option to check your eligibility before applying, this is worth doing.
“Also, any zero percent deal will be limited for a fixed time and after this, the debt will start accruing interest; so make sure you make a note of the date and pay it off before it’s due.
“Check whether there is a fee with the card as that could eat into any introductory offer.”
It should also be noted that credit card holders are currently able to utilise repayment holidays on their debts but this should only be exercised when absolutely necessary.
