If you have ever looked at your card statement and thought, “How is the interest bigger than the payment I made?” you are not alone. UK credit card borrowing rose sharply going into late 2025, a sign that many households are leaning on credit to cover everyday costs.
The good news is that a 0% credit card can be the cheapest way to borrow if (and only if) you use it with a plan. The bad news is that 0% deals come with traps: transfer fees, missed payment penalties, confusing “up to” offers, and sky high APRs when the promo ends.
This guide shows you how 0% credit cards work in 2026, which type you actually need, what fees matter most, and how to use one without paying a penny of interest.
How 0 Percent Credit Cards Work In 2026
A 0% credit card is a normal credit card with a promotional period where interest is set to 0% on a specific activity, usually:
- Purchases you make on the card
- Balances you transfer from other cards
- Money transfers where the card provider sends cash to your bank account (usually for debt consolidation)
During the promotional period, the lender is basically saying: “We will not charge interest on that part of your balance as long as you follow the rules.”
Those rules matter. Miss a minimum payment, pay late, or go over your limit and you can lose the 0% rate early and start being charged interest.
Why lenders offer 0% deals
They are competing for good customers. Many people transfer a balance and then keep the card long term. When the 0% period ends, any remaining balance may be charged at the standard APR. That is why your goal should be simple:
Use the 0% period as a deadline.
You either clear the balance before it ends, or you have a clear Plan B (like moving to a cheaper deal).
What “0%” does and does not mean
0% usually applies only to the promotional feature (purchases or transfers). It does not automatically mean:
- No fees
- No charges for cash withdrawals
- No foreign transaction fees
- No interest on any balance left after the promo period ends
So before you apply, you need to match the type of 0% deal to your goal.
Choose The Right 0 Percent Deal For Your Goal
Most people pick the wrong 0% card because they search “best 0% credit card” and apply to the longest headline offer. That is not the smart way.
The smart way is: choose the 0% type that solves your problem, then shop for the best combination of length, fees, and approval odds.
0% Purchase Credit Cards
A 0% purchase card is for new spending you want to spread over time (for example, furniture, a laptop, or a one off bill). In January 2026, comparison sites describe purchase promo periods that can range from a few months up to around 25 months or more, depending on the deal and eligibility.
Best for: planned purchases you can repay in fixed monthly chunks
Not great for: existing debt on another card (you would need a transfer deal for that)
Golden rule: calculate the monthly payment needed to clear the balance before the 0% ends, then set a direct debit.
0% Balance Transfer Credit Cards
A balance transfer card is designed for existing credit card debt. You move what you owe from one card (charging interest) to a new card (0% on the transferred balance). MoneyHelper explains that providers commonly charge a balance transfer fee, often a percentage of what you move, and that you should weigh the fee against the interest you are avoiding.
MoneySavingExpert’s core strategy is simple: pick the lowest fee that still gives you enough time to clear the debt.
Best for: clearing expensive card debt faster
Watch out for: high transfer fees on very long deals and “up to” offers with backup rates
0% Money Transfer Credit Cards
A money transfer card sends cash into your bank account (usually for a fee), which you can then use to pay off overdrafts or other debts. MoneyHelper describes money transfer cards as a way to move cash into your bank with a promotional 0% period, typically with a transfer fee.
Best for: clearing an overdraft or consolidating debt that is not already on a credit card
Usually expensive if misused: the fee can be chunky, and cash withdrawals are different and often costly
All Rounder 0% Cards
Some cards offer 0% on both purchases and balance transfers. These can be useful if you need to juggle both a transfer and essential spending, but they still require a repayment plan and careful reading of terms.
Best for: one card to manage a transfer and planned spending
Watch out for: different promo end dates for purchases vs transfers, and conditions like “transfer within 60 days” (common in the market)
The 0 Percent Credit Card Fees That Catch People Out
A 0% card can save you hundreds, but only if fees do not silently eat the benefit.
Balance transfer fees
MoneyHelper notes balance transfer fees are commonly around 2% to 4% of the amount transferred and are added to your balance.
MoneySuperMarket also highlights that many balance transfer cards charge a fee and gives examples of fees up to around the mid 3% range.
Quick reality check:
- Transfer £3,000 with a 3% fee
- Fee = £90 added to the balance
You can still save money versus a high APR card, but your repayment plan must include the fee.
Money transfer fees
Money transfer cards also usually charge a fee (often similar to balance transfers). They can still be cheaper than an overdraft, but only if you repay before the promo ends and avoid stacking more debt.
Late payment fees and losing the promo rate
Many guides warn that missing payments or exceeding your limit can cancel the 0% deal early.
That is why the boring tactic (direct debit) is the winning tactic.
“Up To” deals and backup rates
MoneySavingExpert flags that some cards advertise an “up to” 0% period, and some accepted customers may get a shorter offer or different rate.
This is one reason you should use eligibility tools and read the pre contract information carefully.
Cash withdrawals and foreign spending
Even with a 0% purchase card, cash withdrawals are typically treated differently and can trigger fees and immediate interest. Treat your 0% card as a borrowing tool, not an ATM card.
Eligibility And Approval What Lenders Check
You can do everything right and still get rejected if your application timing is poor or your credit file is weak. The good news is you can often reduce risk by checking eligibility first.
Use eligibility checkers when possible
MoneyHelper notes that some providers let you check eligibility using a soft search, which does not affect your credit score in the same way a full application might.
MoneySavingExpert also strongly pushes the “check eligibility before applying” approach.
What lenders are required to assess
In the UK, lenders must assess creditworthiness, including affordability, when offering regulated credit. The FCA’s consumer credit rules and guidance cover how firms should approach this.
That usually means they look at things like:
- Your income and stability
- Existing debt and credit limits
- Payment history
- Recent applications
- Signs of financial stress
Practical ways to improve approval odds
These are not hacks. They are just common sense moves that help you look less risky to a lender:
- Avoid applying for multiple cards within a short window
- Check your credit report for errors and fix them
- Reduce utilisation (for example, do not sit at 95% of your limit)
- Make all payments on time for at least a few months before applying
- Apply for the type of card that matches your situation (transfer vs purchase)
If you are already struggling to make minimum payments, a 0% card might not be the right first step. Free debt advice may be safer.
Step By Step Plan To Use A 0 Percent Card Without Paying Interest
Here is the simplest system that works for both purchases and transfers.
Step 1 Pick your target date
Find the promo end date and write it down twice:
- In your calendar
- In your notes app with a reminder 60 days before it ends
Step 2 Calculate the monthly payment
If you transfer or spend £2,400 and you have 24 months at 0%:
£2,400 ÷ 24 = £100 per month
If there is a transfer fee, add it in.
Step 3 Set a direct debit above the minimum
Minimum payments keep you compliant. They do not guarantee you clear the balance. A fixed direct debit aligned to your payoff plan is what clears it.
Step 4 Stop using the card for random spending
This is where many people fail. If you keep spending, your “clear the balance” plan gets longer and the risk of interest later increases.
Step 5 Keep the card boring
No cash withdrawals. No gambling transactions. No impulsive foreign spending. The more boring the card use, the more likely the 0% strategy works.
Step 6 Have a Plan B before the promo ends
If you might not clear it in time, plan early:
- Increase payments while you still have 0%
- Consider another balance transfer if you remain eligible
- If your credit is weaker, compare a low APR card or a personal loan
Smarter Alternatives If A 0 Percent Card Is Not Right
0% credit cards are powerful, but they are not magic.
When a low APR card can be better
If you cannot realistically clear the balance before the 0% ends, a low APR card may cost less overall than paying a transfer fee and then getting hit with high APR later.
When a personal loan can be cleaner
If you have a fixed debt amount and want a fixed repayment schedule, a loan can be simpler. The key is comparing total cost, not just the monthly payment.
When you should pause and get help
If you are relying on credit for essentials, juggling missed payments, or feeling overwhelmed, borrowing more to fix borrowing can backfire. Start with budgeting and support.
A quick note on Buy Now Pay Later
BNPL regulation has been moving in the UK, with the FCA proposing stronger affordability checks and a formal authorisation regime for BNPL firms.
That does not mean BNPL is always bad, but it is a reminder to treat all “interest free” borrowing with respect.
Key Takeaways
- Match the deal type to your goal: purchases, balance transfer, or money transfer
- Fees matter. A long 0% period is not automatically the best deal
- Use eligibility checks where possible before applying
- Set a payoff direct debit and treat the promo end date like a deadline
- If you are struggling, consider free help before shifting debt around
Frequently Asked Questions
Do 0% credit cards hurt your credit score
Applying creates a hard search and can temporarily affect your score. Also, opening a new account changes your credit profile. Using eligibility checkers first can reduce unnecessary applications.
Is it better to choose the longest 0% balance transfer
Not always. Longer deals can come with higher fees, and “up to” deals can vary by customer. The best deal is the one with the lowest fee that still gives you enough time to clear the debt.
What happens if I do not repay before the 0% period ends
Any remaining balance typically moves onto the standard APR, which can be high. That is why you should plan payments from day one and set reminders.
Disclaimer
This article is for information only and is not financial advice. Credit is regulated and borrowing costs depend on your circumstances. Always check the lender’s terms and consider free, impartial help if you are struggling with debt.