Combined credit cards offer interest-free deals on balance transfers and new purchases.
Use one correctly and, for a period, you don’t need to pay interest on any of your credit card debts or spending. Saving you hundreds of pounds every year.
A balance transfer and purchase credit card is effectively two cards in one. It offers you all the perks of a balance transfer credit card, i.e. a lengthy interest free period on existing credit card debts, and the benefits of a 0% purchase card – no interest to pay on new spending.
They’re ideal for anyone wanting to stop paying interest on existing debts and for those who enjoy some interest-free new spending.
However, the interest-free periods on combined credit cards are shorter than if you get separatebalance transfer and purchase cards, so if you want a longer time of 0% interest go for a specialist balance transfer cardor purchase cardinstead.
One reason people apply for a combined purchase and balance transfer card is that they are worried about making multiple credit card applications as they can harm your credit rating. Applying for a combined credit card helps with this as you can halve the number of applications you need to make.
Our personalised comparison tool can help even further by pointing you towards the credit card providers who are most likely to accept your application. Every lender has different acceptance criteria, so it is hard to know where you application will be successful. Enter a few details and our comparison tool shows you the cards you’re most likely to be approved for – and those that might reject you.
Whilst acceptance still isn’t guaranteed, by applying for cards that we recommend, you are twice as likely to be accepted than those who don’t.
Set up a direct debit to cover at least the minimum payment on your card. If you miss a payment it will have a negative effect on your credit rating and can also result in your credit card provider pulling your 0% interest deal. A direct debit will stop this from happening.
If you still have debt on a combined card after the 0% period ends the interest charges will quickly wipe out the benefit of using the card in the first place. So, make sure you have cleared the debt before the 0% period runs out, or if you can’t do that move the debt to another 0% deal.
A combined card is only worth using during the 0% period. After that the interest rate shoots up and you’ll start paying a fortune for your debt. So set up a reminder or make a note in your diary of when the 0% period ends and make sure to apply for a new credit card before you start paying interest.