What is an interest free credit card?

An interest free credit card can help you spread the cost of your spending or tackle existing debt. Some cards offer 0% interest periods of up to 24 months on purchases – giving you time to spread the cost without paying extra in interest. That could be handy if you're planning a bigger buy or just want to manage your monthly budget more easily.

Some 0% spending cards also let you transfer balances from other credit cards. This means you can move what you owe and enjoy a period where no interest is charged, giving you a chance to clear your balance faster. Planning ahead and setting reminders can help you make the most of the interest-free window.

Just bear in mind, these offers don’t last forever. Once the 0% period ends, interest kicks in, often at a much higher rate. And if you’re transferring a balance from other credit cards, there’s usually a fee involved (typically a percentage of the amount you move, say 2-4%).

Are you eligible for an interest free credit card?

Thinking about an interest free credit card? It helps to know what UK lenders usually expect before you apply. While each provider has its own rules, they typically look for similar things:

  • Age and residency: You need to be at least 18 and living in the UK.

  • Income: A steady income shows you can handle repayments.

  • Bank account: You’ll need a UK bank account to manage payments easily. Some banking providers prefer you already bank with them but it’s not always essential.

  • Credit history: A decent credit record is beneficial. Lenders want to see you manage credit responsibly, so recent issues like CCJs or bankruptcy might hold you back. If you have poor credit or you are new to credit, a credit card for bad credit could help.

  • Minimal recent credit applications: Too many credit applications in a short period can make lenders wary, so be mindful of how often you apply.

Every lender has its own specific criteria, so it’s a good idea to check what the provider requires before you apply to avoid unnecessary knocks on your credit file.

How do interest free credit cards work?

Interest free credit cards for spending can be a smart way to spread the cost of purchases over time without paying interest. Here’s how they work:

Applying can be quick and simple

You’ll be asked for details like your income, spending habits and job status. Lenders will also run a credit check to see if you're eligible and decide what credit limit and interest-free period to offer. Many providers let you use an eligibility checker first so you can see your chances without affecting your credit score.

Once approved, you can start spending

You’ll receive your new card and can begin using it to make purchases. These will stay interest free for a set period. Just watch out for any fees and charges.

You don’t have to pay the full amount each month:

You’ll need to make at least the minimum payment each month, but paying more will reduce your debt faster. It’s wise to aim to clear the full balance before the 0% deal ends – when a higher interest rate usually kicks in. Setting up a direct debit can help you stay on track and avoid missed payments.

Looking to move your credit card balance to a 0% card? Find out more about balance transfer credit cards here.

How much can I spend on an interest free card?

The amount you can spend on an interest free credit card – known as your credit limit – depends on your personal financial situation. Some cards start with limits as low as £200, while others may offer several thousand pounds. What you’re offered will vary based on your income, credit score and existing borrowing.

Here are some of the main checks lenders do when deciding your limit:

  • Your income: Lenders want to know you have a reliable income to afford your repayments.

  • Your credit history: A strong credit score may help you get a higher spending limit and a longer 0% period.

  • Your other financial commitments: If you already have loans or other credit cards, this can affect how much you’re offered.

If your credit limit isn’t enough to cover all your planned purchases, you can still use the card for some of your spending and enjoy the interest-free period. Just be sure to stay on top of repayments across all your cards.

What happens if I don’t pay off the balance before the 0% deal ends?

If you don’t clear your balance before the 0% introductory period ends, the remaining amount will start racking up interest.

It’s a good idea to set a reminder a few months before your 0% period finishes. That way, you can either pay off what’s left or look into switching to another deal if you need more time. Just make sure you factor in any new transfer fees and check your eligibility again.

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Page updated on 11th September 2025, Reviewed by Richard Groom