We’d like a 0% credit card to fund our renovations. Which one is best for us?

23 August 2019

Q

We are undergoing a renovation project on our home. We need to borrow some money to help fund the project and would like to do this on a 0% credit card. Which one would you recommend?

From
AH/Cardiff

A

The cheapest option would be a credit card offering a 0% interest term on purchases, whereby if you repay in full before the promotional period ends there is no interest or fees to pay.

The longest 0% duration at the time of writing is with Barclaycard Platinum and MBNA (both 27 months). But please note you must make at least the minimum repayment each month otherwise you will forfeit the 0% offer.

You are not restricted to making a single purchase but are free to make as many purchases as you need as long as you remain within your credit limit – just remember once you take the card out, the clock starts ticking.

So, for example, if you made a purchase three months after receiving your card you would only have 24 months remaining at 0% on the amount of that particular purchase.

If you need the money for a builder who doesn’t accept credit card payments then look for a credit card that offers a 0% money transfer facility – it’s similar to a 0% balance transfer but enables you to transfer the money from the card into your bank account rather than to repay another card.

The latest Virgin Money deal offers 0% on money transfers for 20 months, but beware there is a fee of 4% payable on the sum transferred. Again, please note you must make at least the minimum repayment each month or you will forfeit the 0% offer.