Dos And Don'ts For 0 Purchases Credit Cards

If you are debt-free but would like to use a credit card to make purchases

, a 0 purchases credit card could be a good choice. If you want to use one of these cards, it is important that you pay off your balance in full each month. Here are the dos and don'ts for using a 0 on purchases credit card.

DON'T: Use a 0% on purchases credit card to pay off current debt

0 on purchases credit cards are not usually 0 on balance transfers, so If you are in debt, it is not sensible to continue making purchases if you can avoid it. If you are in debt, you should consider opting for a 0 balance transfer card or a lifetime balance transfer card instead. This way you can concentrate on paying off you debt without adding to it by making more purchases on your credit card.

DO: Be disciplined about paying off the balance

It's important to be vigilant about paying off your balance before the interest free period ends. This is because beyond this the interest is likely to be very high on anything you owe. The average interest on credit cards in the UK is around 17.5, so failing to pay off your balance in time could end up costing you hundreds of pounds in interest payments. Make sure you take a note of the date you need to have paid your debt, and budget so you can make enough payments for that to happen in time.

DON'T: Use the card on transactions which aren't interest-free

Don't forget that not all transactions on a 0 in purchases credit card will be interest free - Make sure you understand exactly what purchases your 0 on purchases offer includes. They will often not include cash withdrawals, online gambling or buying gift vouchers, so make sure you know exactly what is interest free, and what isn't, and don't end up paying unexpected interest payments.

DO: Compare offers across different credit card providers

If you are free of current debt and would like to make purchases using a 0% on purchases credit card, do your research to make sure you are getting the best deal for your needs. Different card providers will offer different interest free periods, varying interest rates once the promotion expires and a variety of other differences in terms and conditions. Make sure you shop around and find the best deal for you.

DON'T: Use a 0 balance transfer card to make purchases

Even if a 0 balance transfer card offers a period of 0 on purchases at the beginning of the offer, it is not usually a good idea to make purchases on these cards. The reason the cards offer interest free purchases is to encourage spending despite current debt. For nyone already in debt enough to need a 0 balance transfer card should probably not be spending, as their debt will increase and be harder to pay off in the allocated interest free period.

by: David P Walker

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