Martin Lewis’ MoneySavingExpert website has explained how to pay no interest on a credit card purchase for 22 months.
It involves using a 0% spending card to spread out the cost of a big purchase over a set period of time.
But these cards need to be used responsibly and you should only apply for one if you absolutely need to make a one-off spend - for example, if an appliance has broken down.
Martin Lewis’ MoneySavingExpert website said the best-buy deal in the market is currently through Tesco Bank.
The account pays top credit scorers 0% for 22 months and - although this jumps to 20.9% after the fixed period.
You should make sure you can pay off the entire amount within your 0% interest-free period, or you’ll start paying interest.
The same goes for minimum payments - make sure you can pay back the absolute minimum each month of you could lose your 0% deal and be charged a fee.
You will also be charged and pay interest on cash withdrawals and balance transfers.
In its latest newsletter, MoneySavingExpert explained how the longest length 0% purchase credit since June last year launched this week.
Tesco Bank is now offering up to 22 months 0% interest for those with good credit scores.
If you’ve got a poor borrowing history, you may be offered 18 months or 14 months at 0%.
Keep in mind a smaller length of time at 0% isn’t necessarily a bad thing if you can still afford to pay off the full amount in that timeframe.
After your 0% period is up, you’ll pay 20.9% representative APR. Everyone who is accepted for this card will also earn Clubcard points on their purchase.
The next longest 0% purchase credit card currently available is from Sainsbury’s Bank, which is offering up to 21 months interest free.
Again, this is only for those with good credit histories - you may be offered 13 months at 0% instead.
Everyone accepted will get 500 bonus Nectar points (worth £2.50) per £35-plus spend at Sainsbury's in the first two months, up to a maximum 5,000 bonus points, worth £25.
After the 0% interest period is up, the rate goes up to 20.9% representative APR.
Finally, the third-longest 0% purchase card comes from M&S, where everyone who is accepted gets 20 months interest free.
Once the 20 months are up, the interest rate is 21.9% representative APR.
Before you apply for any type of credit card, you should use an online eligibility calculator first - which uses a soft search - to check your chances of being accepted.
If you get declined for a credit card, it could have a negative impact on your credit score.
MoneySavingExpert has a free credit card eligibility tool you can use.
If you’re already struggling with debt on an existing credit card, taking on more borrowing will put you further into the red.
Speak to your lender to see what support they can provide, or talk to one of these free organisations:
Citizens Advice (0808 223 1133)
StepChange (0800 138 1111)
National Debtline (0808 808 4000)
