What is a 0% interest credit card?
A 0% interest credit card lets you make purchases or transfer an existing balance from another credit card provider without being charged interest. This is usually for a fixed amount of time - known as an offer or introductory period.
How do 0% interest credit cards work?
Depending on the period your offer lasts - this varies by provider and product - you can use your credit card without being charged interest.
This can be when you make a purchase or on a balance you transfer across from an existing credit card.
Some providers will take away your 0% interest rate if you don't make at least your minimum monthly payment on time or go over your credit limit.
Once the offer ends, the standard interest rates will apply to the remaining balance of your card.
Benefits of a 0% interest credit card
Not paying interest means you'll only be paying off your balance, and at a pace that suits you.
This can allow you to:
- transfer across debt from high-interest credit cards so you can pay off the balance instead of the interest
- spread the cost of larger items
- be more flexible with your finances
Risks with a 0% interest credit card
With any borrowing-based product, it's important to know the risks and what to be mindful of.
Some things to keep in mind:
- At the end of the interest free period, there will be a high APR
- Be careful not to go over your credit limit. Some providers may charge a fee.
What is APR?
APR stands for Annual Percentage Rate.
It is a rate that shows you how much you'll pay back in interest over a year. The APR figure includes any annual fee you have to pay for taking out the card.
APR can be used to compare the total cost of your borrowing with other providers.
Eligibility for a 0% interest credit card
Like with all credit cards, you'll need to check if you meet the requirements to apply.
At Nationwide, you can apply if you:
- are aged 18 or over
- earn £5,000 or more a year before tax
- are a UK resident
- have a Nationwide current account, savings account or mortgage
Note:
You can't apply if you already have a Nationwide credit card or were declined for any credit card within the last 30 days.
What happens after the introductory period?
When the introductory period ends, a variable APR will apply to the remaining balance.
The APR varies by product and provider. This should be made clear when you apply for the credit card. If you need a little reminder, you can check the credit card agreement.
You'll continue to make payments as normal and your monthly statement will now show your interest owed as well as a minimum payment.
Credit cards
Check if you're eligible to apply for a Nationwide credit card