2. Take Advantage of 0% Introductory APR Offers
Many credit card companies offer 0% introductory APR periods for new customers.
These promotions can last anywhere from 6 to 21 months, letting you borrow money interest-free — as long as you follow the terms carefully.
How it works
A 0% APR card lets you make purchases or transfer balances without interest for a limited time.
After that period ends, the regular interest rate applies to any remaining balance.
Types of 0% APR offers
- 0% on purchases: Interest-free on new purchases for a set period.
- 0% on balance transfers: Move high-interest debt from another card and pay it off without interest during the promo period.
- Combined 0% offers: Some cards include both.
Example
If you transfer a £1,000 balance to a 0% APR card with 18 months interest-free:
- Pay ~£56 per month, and you’ll be debt-free before the offer expires.
- Pay late or miss payments, and you lose the 0% — interest will apply retroactively.
Best practices
- Always pay on time — missing one payment can cancel the offer.
- Pay off the entire balance before the 0% period ends.
- Avoid new purchases on that card until you clear the transferred balance.
Pro Tip: Set an automatic payment plan that divides your balance evenly over the promo period to ensure full repayment before the interest kicks in.
3. Avoid Cash Advances and Convenience Checks
One of the fastest ways to lose your interest-free advantage is by using your card for cash advances.
Why it’s risky
Unlike normal purchases, cash advances:
- Have no grace period — interest starts accruing immediately.
- Often come with higher APRs (usually 25%–35%).
- Charge transaction fees (3%–5% of the withdrawn amount).
The same goes for convenience checks (those credit card checks your bank mails you) — they are treated as cash advances too.
Example
If you withdraw £200 cash from your credit card with a 28% APR:
- You’ll start paying interest from day one.
- You’ll also pay a 5% fee (£10).
So your £200 withdrawal costs you £210 immediately — and interest keeps adding up daily.
Better alternatives
- Use your debit card for cash needs.
- Build a small emergency fund so you never need to borrow cash from a card.
- Consider a personal loan with lower APR if you truly need funds.
Tip: Even one cash advance can destroy your interest-free status and lower your credit score if your utilization jumps.