0% APR Deals in the UK: What You Need to Know
Are you tired of paying high interest rates on your credit card or loan? Look no further! 0% APR (Annual Percentage Rate) deals are a great way to borrow money without incurring any interest charges. In this article, we'll explore what 0% APR deals are, how they work, and where to find them in the UK.
What is a 0% APR Deal?
A 0% APR deal is a type of financial product that allows you to borrow money without paying any interest charges for a set period of time. This means that you'll only need to repay the amount you borrowed, without any additional interest fees. 0% APR deals are often offered on credit cards, loans, and other financial products.
How Do 0% APR Deals Work?
0% APR deals typically work by offering a promotional period during which you won't be charged any interest. This promotional period can vary in length, but it's usually between 6 and 24 months. During this time, you'll need to make regular payments to repay the amount you borrowed.
For example, let's say you take out a 0% APR credit card with a £1,000 limit and a 12-month promotional period. You use the card to purchase £1,000 worth of goods, and you make monthly payments of £83.33 over the next 12 months. At the end of the promotional period, you'll have repaid the full £1,000 without paying any interest charges.
Where to Find 0% APR Deals in the UK
There are several places where you can find 0% APR deals in the UK:
Credit Cards
- Barclays: Offers a range of 0% APR credit cards with promotional periods of up to 24 months.
- HSBC: Provides 0% APR credit cards with promotional periods of up to 18 months.
- Santander: Offers 0% APR credit cards with promotional periods of up to 24 months.
Loans
- Zopa: Offers 0% APR loans with promotional periods of up to 12 months.
- Ratesetter: Provides 0% APR loans with promotional periods of up to 12 months.
- Shawbrook Bank: Offers 0% APR loans with promotional periods of up to 12 months.
Balance Transfer Deals
- MBNA: Offers 0% APR balance transfer deals with promotional periods of up to 24 months.
- Virgin Money: Provides 0% APR balance transfer deals with promotional periods of up to 24 months.
- Halifax: Offers 0% APR balance transfer deals with promotional periods of up to 24 months.
Things to Consider
Before taking out a 0% APR deal, there are a few things to consider:
- Promotional period: Make sure you understand how long the promotional period lasts and what the interest rate will be after it ends.
- Fees: Check if there are any fees associated with the deal, such as annual fees or balance transfer fees.
- Eligibility: Check your credit score and ensure you meet the lender's eligibility criteria.
- Repayment terms: Make sure you understand the repayment terms and can afford to make the monthly payments.
Conclusion
0% APR deals can be a great way to borrow money without incurring interest charges. By understanding how they work and where to find them, you can make informed financial decisions and save money on interest fees. Remember to always read the terms and conditions carefully and ensure you can afford the monthly repayments.
