Credit Cards with a 0% annual percentage rate (APR) can help you save on interest when paying for big-ticket purchases. Discover more about Purchase Credit Cards here.
How do Purchase Credit Cards work?
When you over the life of the loan.spend on a 0% interest Credit Card, you can pay the sum back in monthly instalments over a pre-agreed amount of time. If you keep up with these payments and pay off your Card balance by the end of your interest-free period, the credit won’t have cost you anything.
So, Purchase Credit Cards are a great credit option if you’re able to make large repayments over a shorter amount of time.
Purchase Cards vs Rewards Cards: What’s the difference?
0% APR Purchase Cards allow you to buy items upfront; spreading big payments over an agreed period of time with no added interest. However, if you don’t pay off what you’ve borrowed before this 0% period ends, interest will build up on your balance, making any remaining repayments more expensive. Make sure you understand the Card’s revert rate (the provider’s standard purchase rate after the 0% period ends) or APR.
Rewards Cards also offer a line of credit that allows you to make purchases and pay back the amount later. If you pay back less than the full balance within the specified monthly period, you will be charged interest on the amount you owe. With Rewards Cards you can also earn rewards points whenever you use your Card; to redeem on travel,
Gift Cards, entertainment, experiences and so much more.
Credit Cards for rewards
If you’re after discounts, gift cards and other exclusive consumer benefits, you may be better off with a Rewards Card.