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Get paid for borrowing at 0%

If you need to borrow for a planned purchase, then there's never been a better time to borrow on a 0% purchase credit card.

Right now, TWO cards will pay you for doing just that. But one deal is ending soon—so if you want it you'll have to go quick!

Here are all of the details you need to be aware of.

What is a 0% purchase credit card?

A 0% purchase credit card is a specialist type of credit card. If you use one of these cards for new purchases you can avoid paying any interest on your spending for a set period of time. Interest-free periods can vary massively between cards though, right now, the longest cards offer a 0% periods exceeding TWO YEARS.

0% purchase credit cards can be THE cheapest way to borrow. That's because if you use these cards correctly, you can actually borrow at no cost. Yet get it wrong by busting your credit limit, failing to repay, or missing a minimum repayment, and it could cost you big.

0% purchase credit card need-to-knows

If you've never borrowed on a credit card before, take the time to understand the following 0% purchase card need-to-knows.

1. Make at least the minimum payment each month. While 0% borrowing means you can avoid paying interest, it doesn't mean you have nothing to pay. In order to keep any interest-free deal, you're typically required to make at least the minimum payment each month. The easiest way to do this is to set up an automatic direct debit.

2. Stick within your credit limit. If you successfully apply for a credit card, then you'll be given a personal credit limit. This refers to maximum balance you can carry on your 0% card. For example, if your credit limit is £3,000, it's really important that you don't spend more than this on your card. If so do, this would be classified as busting your limit. This could negatively impact your credit score, and could also lead to the termination of your 0% deal.

3. Clear your balance before the 0% period ends. Whatever the length of your 0% purchase card it's important that you clear your balance before the interest-fee period ends. That's because after a 0% period ends, typical APR comes into play, which is usually very expensive. If you find you can't repay what you owe before your 0% period ends, then shifting your balance to a 0% balance transfer credit card is the next-best option.

4. Only get one of these cards if you won't overspend. If you fear you'll be tempted to use a 0% card to spend more than you usually would, then it's probably best to give these cards a miss. 0% credit cards should only be used for planned purchases, or to spread the cost of a big purchase that you can afford to repay. Never use the 0% element of these cards as an excuse to overspend.

What 0% purchase credit cards will pay you for borrowing at 0%?

If you're looking for a 0% purchase credit card, you may be pleased to know that now's a great time to get one. Right now, there are TWO cards that will pay you for borrowing at 0%. So if you get one one of these cards, not only can you avoid paying interest on your credit card balance, but you can pocket a nice reward too!

Barclaycard - £20 cashback

This Barclaycard offers a 0% purchase period for up to 25 months. Plus, you'll also bag £20 cashback if you're a new customer, and you spend at least £250 within 90 days of opening your account. However if you want the offer you'll have to go quick as it ends on Friday 9 September.

Importantly, this card is an 'up to' which means that you may be offered just 12 interest-free months, depending on your credit score. After the 0% interest-free period ends, you'll pay 22.9% representative APR interest on any balance you haven't cleared.

Sainsbury's Bank - up to £25 Nectar pts

If the above Barclaycard isn't for you, then Sainsbury's Bank also has a 0% purchase credit card that rewards you for using it. While it offers a slightly shorter 24 interest-free months, the card gives 500 Nectar points for every £35 you spend at Sainsbury's within the first two months of opening your account. You can do this up to a maximum of ten times, so there's a possible 5,000 bonus points up for grabs.

You also earn two Nectar points for every £1 you spend on this card at Sainsburys until 31 October, and one point for every £5 spent elsewhere. So if you're a Nectar collector and looking for borrow at 0%, this could be the card for you. The representative APR interest on this card is 21.95%.

To explore these cards, plus other options, take a look at our best 0% purchase credit cards guide.

Is it wise to borrow in the climate climate?

Right now, the UK is facing a cost of living crisis, with prices rising across the board. UK inflation currently stands at 10.1%, and many expect it to go even higher. Given the UK's high rate of inflation, there's an argument that now is a very good time to borrow at 0%. That's because any balance you hold on a 0% card isn't tied to inflation.

This means that if you carry a high balance on a 0% credit card, and you steadily repay what you owe over the next two years (before any 0% period ends), not only would you have enjoyed interest-free borrowing, but you'd also be paying back less, in real terms. That's because your future repayment will essentially be worth less in two year's time, given the UK's high inflation rate.

Despite this, if you don't have a need to borrow at 0%, or you'd struggle to use these cards responsibly, then it's still best to stay clear of these cards.

To learn more about credit cards, take a look at our page that explains credit cards by their features.


The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.