Apr 4, 2017

Best 0% Credit Cards in the UK

What to Look for in UK 0% Credit Cards?

Zero percent (0%) credit cards are taking the world by storm!  And as they rise in popularity, they also become more and more widely available to the masses of consumers who benefit from cheap capital. The best 0% credit cards will provide you with greater spending freedom, connect you to the network of a High Street Bank, and give you the 0% rate for the longest period of time. However, it’s worth noting that there might be a difference between sterling and non-sterling transactions.

Generally, you will either need to have a very good credit score or be transferring a balance from another bank’s credit card to the new one to earn the 0% credit card rate. These will usually give you this low introductory rate for a period of time and then return you to a normal rate thereafter. That is a simple fact you must stay aware of because promotional terms change frequently and each individual must still qualify based on their credit score.

Many of the following credit cards specify the offer is “up to” 0%, meaning that the customers with the best credit scores will qualify for the best rates for the longest span of time. Others might still qualify for this offer for shorter periods of time. Read on to learn about the four best zero percent credit cards in the UK!

1. Bank of Scotland

The Bank of Scotland was founded on 17 July 1695 and is the fifth-oldest bank in the United Kingdom. Customers can choose from several 0% credit cards at the Bank of Scotland, ranging from 9 months to its 41 Month Platinum Balance Transfer Card. This is one of the best 0% credit cards due to the length, Platinum designation and bank’s good name.

Basically, the Bank of Scotland 41 Month Platinum Balance Transfer Card will offer you 0% for up to 41 months on balance transfers made within 90 days of account opening. The minimum balance transfer amount is £100. There is a balance transfer fee of 1.9% after the refund. Also, your purchase rate offer would be 0% for 6 months from account opening, which many consumers have found helpful. Qualification requirements include being older than 18, a permanent UK resident, and having a good credit rating.

Customers can transfer balances from many other credit cards, but not Bank of Scotland cards. The Bank of Scotland states – “We will charge you £12 if you do not make at least your minimum payment to us by the payment due date requested on Virginiament. The cash transaction fee is 3% or a minimum £3. Late Payment, Over Limit or Returned Payment charges will be £12.” However, there is no annual fee, which helps sweeten the deal.

2. Barclays

Established as a goldsmith banking business in 17 November 1690, Barclays has become one of the top banks for credit cards in the world. A 2011 paper by Stefani Vitali claimed that Barclays was the most powerful transnational corporation in terms of ownership, global financial stability and market competition. In June 1987, its Connect card was the first debt card in the United Kingdom.

If you should choose the Barclaycard Platinum 37 Month Balance Transfer, you will be working with the industry leader. This offers you 0% for 37 months with very few limiting conditions. Any transfers made within 60 days of opening your account will incur a 3.5% fee, which will then be reduced to 1.4% by refund.

Barclays also offers £20 cashback with a 0.6% fee. Just like all reputable banks, to qualify you must be older than 18, a UK resident, and have good credit. One downside of this card is the inability to transfer a balance from another Barclaycard.

The minimum credit limit offered is £250 and the maximum credit limit is subject to change depending on your banking habits. Late Payment, Over Credit Limit or Returned Payment will all incur a £12 fee, but this is fairly standard across all major banks. Interest Charging terms depend on whether the currency is sterling or non-sterling:

  • Purchases and non-sterling cash withdrawals will have interest payable from the date the transaction is debited to your account until the date of your last statement before the transaction is paid in full.
  • Purchases and sterling cash withdrawals and balance transfers will have interest payable from the date the transaction is debited to your account until it is paid in full.

Your simple purchase and cash interest rates will shift along with changes to the Bank of England Base Rate. If your main balance and any purchase plan payments due for that month are not paid in full, interest will be charged on all items in your main balance.

There are some attractive perks associated with Barclay banking. Barclays has a special relationship with Uber, so you may be offered a discount on transportation. You could also qualify for the ability to make contactless purchases of less than £30. It pays to bank with an industry leader.

3. Halifax

The Halifax Bank began as the Halifax Building Society in 1853. In the 1980s, Halifax Bank diversified its financial portfolio into credit cards and hasn’t slowed down since.

The Halifax 43 Month Balance Transfer Card offers a longer effective time than other comparable plastic cards. You will be charged 0% for up to 43 months on balance transfers made within 90 days of account opening. The minimum balance transfer amount is £100. Although you can’t transfer between Halifax cards, you can from its sister firms, Lloyds and Bank of Scotland.

You’ll initially be charged a 3.5% fee, which will be refunded down to 2.98% within 90 days. The purchase rate offer is 0% for 6 months from account opening.

4. Tesco Bank

When you want convenience, wouldn’t you like a 0% credit card for your grocery trip? Tesco supermarkets were started in 1919 by Jack Cohen and have become the 3rd-largest retailer in the world as of 2017. Now, there are more than 6,900 Tesco stores around the world. In 1995, Tesco introduced its Clubcard as a loyalty program, and has since branched out into banking.

The beauty of the Tesco Bank 0% 17 Month ClubCard, is that, you can collect ClubCard points and pay with the PayQwiq smart phone app. Qualifying for this card is actually simpler than its predecessors! You will need to be older than 18, a UK resident, but have a minimum income of at least £5,000. There will be a 0% interest on balance transfers for the first 3 months, with a 2.9% balance transfer fee. You can transfer up to 95% of your credit limit.

This PayQwiq system uses the near field technology, allowing you to scan your smartphone to collect your Clubcard points. The Clubcard has more than 6 million customers. The customer service department of the Tesco Bank Clubcard also uses call centres, which are based in the UK.

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