Best 0% Credit Cards 17 mths interest-free spending

Do it right and credit cards are the cheapest way to borrow. You can get 0% for up to 17 months - yet get it wrong and you'll be stuck in debt for years.

This is a step-by-step guide, updated daily, to the cheapest credit cards for new borrowing and how to use them, saving you �1,000s.

Is a credit card right for you?

Debt isn�t bad, bad debt is bad. Yet in these recession and credit crunch-hit times, all borrowing is tinged with the dark side. Lose your income and debt will leave you in a nightmare. So before choosing which card is right for you, watch out for the following...

Is it worth getting a card?

Debt is like fire. Used well, it�s a great tool. Used badly, you�ll get burned. Unless you�re financially disciplined and doing it tactically for stoozing, it's always worth borrowing as little as you need, and where possible, using savings instead of borrowing.

The worst thing to do with a credit card is to use it to fill the gaps your income doesn�t meet each month. That will see borrowings constantly grow and can leave you in a debt spiral (see the Stop Spending guide for more).

Ensure your borrowing stays free

However, if you need to borrow for a defined purchase, then used correctly, credit cards are cheaper than loans. This may be for a football season ticket, where it works out cheaper than forking out for individual matches; you may need a new sofa as the old one's kaput; or it might be to pay for a year�s car insurance as the insurer�s interest rate for paying by the month is huge.

Done right, it's possible to borrow at no cost.

• Make at LEAST the minimum repayments
  
  Ensure you set up a direct debit for at least the minimum repayments as soon as you are accepted. Even though you're paying 0%, you still need to make repayments. If you miss one, you will lose your 0% deal, so the rate will jump and you'll get a �12 charge.
• Clear the card within the 0% period
  
  Go even one month beyond the promotional period and the rate rockets, so calculate the amount needed to clear the balance by then. For example, borrow �600 on a year�s 0% card, divide the spend by the number of months (�600 / 12) to get the monthly repayment - in this case �50 - and set up a direct debit to do that.
• Diarise the end dates
  
  It's vital you make a note of the 0% end dates (or use the Tart Alert) to make sure you pay off the debt in time, or be ready to switch to a new Best Balance Transfer deal. If you forget to switch when the deal ends, the interest cost will swiftly outweigh the card's benefit.

To do this properly isn't just a question of getting the right card. It's about understanding how it works, and how to avoid the massive pitfalls.

Pick the right type of card

To find out the best way for you to borrow, answer the questions below. They'll assess how you spend, and direct you to the relevant part of the guide.

The cheapest cards for new borrowing

The choice is simple. Those who can pay off in under a year, or are willing to tart, should go for a 0% deal. Everyone else should pick the cheapest long-term low rate. All the following deals only apply to NEW cardholders.

If your application's rejected, check your credit rating immediately. If you're accepted and the credit limit is too low, don't chuck the card as it's already on your credit file. Simply apply for a second card to use alongside it. See the Low Credit Limit guide.

The longest 0% deals

The main aim is to find the card which will give you the longest 0% introductory deal. The 'go to' rate that cards jump to after the 0% periods are also listed, but as these cards are only for tarts/quick repayers this shouldn't affect you.

These cards are getting more competitive, so now you may also pick based on extra perks, such as cashback.

Halifax - 17 months 0%Some may get 12 or 9 months 0% on purchases

• Spending length: 17 months 0%
• Rep variable APR: 16.9% (Official APR Example)
• Card issuer: Mastercard
• Min income: N/A
• Min repay : Greater of 1% of balance plus interest or �5

This Halifax card has 0% on purchases for 17 months. But only a minimum of 51% of applicants will get the deal - the rest will either get 12 or 9 months 0%.

The promotional 17 months 0% will be given to "at least" 51% of those accepted. The rest will either get 12 or 9 months 0%. So only apply if you have a top credit rating, otherwise look at the other options here, like Tesco below.

The interest rate after is 16.9% representative APR. If you don't get the 17-month deal it'll be either 21.9% or 25.9%, so make sure you've paid it off, or you're ready to shift the debt to a new balance transfer card.

16 months 0% purchase cardTesco, plus collect Clubcard points

• Spending length: 16 months 0%
• Rep variable APR: 16.9% (Official APR Example)
• Card issuer: Mastercard
• Min income: �5,000
• Min repay : Greater of 1% of balance plus interest or �25

The Tesco* Clubcard Credit Card gives 0% for 16 months on new purchases. You must earn over �5,000 in order to apply. After the 0% rate ends, it's 16.9% representative APR after, so ensure you've repaid in full or switch to a top balance transfer card.

• Spending rewards. Every time you spend you get Tesco Clubcard points - one for every �4 spent. If redeemed for Tesco's Clubcard Rewards, they're worth about 3p each, making this equivalent to a 0.75% cashback card.

You can get a slightly shorter-length 0% period with Marks and Spencer, plus reward points to spend in there - good if you shop there more than Tesco - see full details.

Tesco often has special deals where you can collect extra Clubcard points, and sometimes even make a profit. For more details, read the Boost Tesco Clubcard Points guide. If you're a big M&S; shopper, see its card below, although it does offer a slightly shorter 0% deal.

Fluid* - 16 months 0% purchase cardAlso offers 14 months on balance transfers

• Spending length: 16 months 0%
• Rep variable APR: 16.9% (Official APR Example)
• Card issuer: Visa
• Min income: N/A
• Min repay : Greater of 1% of balance plus interest or �25

This Fluid* card (you can use our pre-apply eligibility checker for this card) has 0% on purchases for 16 months.

The Fluid card range tends to accept people who have 'okay' rather than tip-top credit ratings, so use the eligibility checker to find out your chances.

If you haven't managed to pay off your purchases balance by the time the 16 months is up, then you'll pay 16.9% representative APR on the balance left. If can't pay it off in time, shift the debt to a balance transfer card.

15 months 0% purchase card NatWest/RBS, plus earn points to spend at Amazon, Boots, M&S;

• Representative variable rate: 16.9% APR Official APR Example
• Min spend trigger: None
• Freebie: 2,500 points, enough for a �10 voucher
• Min income: �10,000
• Min repay : Greater of 1% of balance plus interest, or �5

The YourPoints World cards from NatWest* and RBS*both give 0% for 15 months on new purchases (you can use our pre-application eligibility checker for these cards: NatWest, RBS). After the 0% rate ends, they're 16.9% representative APR, so ensure you've repaid in full or switch to a top balance transfer card.

• Free �10 Amazon voucher and spending rewards. You'll get 2,500 bonus YourPoints - enough for a �10 voucher to spend at Amazon, Boots, M&S; and others with points to spare - when you successfully apply, and on your card's anniversary each year after. You'll accrue YourPoints - one for every �1 spent - with double points for 15 months.

Similar 0% periods are available with Tesco and Marks & Spencer, along with reward points you can spend in each store - good if you regularly shop in either of them.

15 months 0% purchase cardM&S;, plus 0.5% back in vouchers

• Spending length: 15 months 0%
• Rep variable APR: 16.9% (Official APR Example)
• Card issuer: Mastercard
• Min income: N/A
• Min repay : Greater of 1% of balance plus interest, 2.5% or �5

The M&S;* credit card offers 0% on spending for a slightly shorter 15 months (you can use our pre-application eligibility checker for this card). After this, the rate jumps to 16.9% representative APR.

• Spending rewards. You also collect points as you spend, which are converted into Marks & Spencer vouchers quarterly. You get 0.5% back on most purchases (50p per �100 spend) and 1% when you spend in M&S.;

M&S;, like many other banks, tries hard to sell you other products and memberships once you are a customer, so be wary. Make sure you really need something and can't get it cheaper elsewhere before parting with any cash.

Beware balance transfers

There's a devious trick some cards play if you have a 0% for purchases deal. Often they also allow you to shift debts to the card, but this can be at a higher interest rate.

Repayments must go towards the most expensive debts first, under rules introduced in 2011. But as you're unlikely to be able to repay in full, you'll still get charged interest.

So if you need to transfer debts, it's best to use a separate card instead. See the Best Balance Transfers guide.

Cheapest long-term low rate deals

Here, the aim is to get a card where the low rate is for the long term, not just an introductory offer. While it's not 0%, it does mean that you don't have to remember to shift from card to card, and know you've got a deal for the long term.

Sainsbury's*Long-term lower rate, no fee

• Spending rate & fee: 7.8% APR, no fee (see official rate example)
• Min income: N/A
• Card issuer: Mastercard
• Min repayment : Greater of 1% of balance plus interest, 2.25% of balance or �5

The lowest long-term rate card comes from Sainsbury's* with 7.8% representative APR (you can use our pre-application eligibility checker for this card).

Is the rate fixed? While the card is variable rate, credit card regulations mean it's not allowed to increase within the first year. After that, as long as you agree not to borrow more, you have a right to reject any rise (see Rate Jacking guide for full rules).

Like all credit cards, to get it you'll be credit scored. While 51% of accepted applicants will get 7.8%, some slightly poorer credit scorers will be given higher rates of 9.9% or 11.9% APR. It also has the same rate on debts shifted to the card with no fee, though if you need this it may be better to look at the Best Balance Transfer cards.

How to turn it into a loan. If you need to borrow less than �5,000, and want to use the lump sum to buy something that can be put on a credit card, this rate smashes the cheapest normal personal loans.

Yet the big danger of using a card as a loan is that you choose your repayments, so there's a temptation to spend more later. Proper loans are fixed to clear the debt in a set time and you can't borrow more. Read Cheap Credit Card Loans for more details.

To replicate the discipline of a loan, once you've done your 'loan' spending, lock the card away (freeze it?!) and set up a direct debit to repay a fixed monthly amount, designed to clear the loan within a set time (use the loan calculator to work this out).

Can these cards be used for balance transfers too?

On these cards, often - but not always - the rate applies to debt that is shifted to the card. If that's the case, and you're looking for long-term cheap debt, it's likely to be reasonably competitive and there's nothing wrong with doing it. Though always compare with the Best Balance Transfers first.

Yet don't assume the rate automatically applies for all transactions. For example, Barclaycard Simplicity charges a big 15.8% rate for cash withdrawals. So never, ever, ever use it - or any credit card for that matter - for withdrawing cash.

Think before adding the 'insurance'

Payment protection insurance is commonly sold with credit cards. The idea is it'll make some payments for you, usually for a year, if you are unable to (eg, if you lose your job).

But in many cases, it was mis-sold. In some cases, borrowers didn't realise they were signing up for it, or it was totally unsuitable for them. Some big lenders have been fined.

The protection isn't always bad. But policies sold with cards are often overpriced - you pay a monthly amount depending on the size of your balance. If you want it, compare the lender's cover with standalone providers such as Paymentcare or Best Insurance.

Always be vigilant and check you aren't getting more than you bargained for when you fill in the application. Then check your statement each month to check you aren't inadvertently paying for extras if you didn't ask for them.

Worried about being rejected?

The cards listed above are the market's top deals. Some of them require a good credit score. If you're worried about this, then use the eligibility checker before you apply. If it shows that you aren't likely to get these cards if you apply, then you can take steps to improve your credit.

• Check your credit score for free

  Understanding why you may be rejected is crucial for picking the right card. So first use the Free Credit Check guide for a full explanation and how to do it.

• If you've only limited/minor issues

  Some of the cards above should still be accessible to you, especially those that rate for risk (give some poorer credit scorers a lower number of months.
  
  However, if all score low on the eligibility checker, then see if any credit cards for poorer credit are suitable. Though, beware, deals do not tend to be as good for poorer credit scorers.

Should you tart? Keep your debt at 0%

While disloyalty is frowned upon in relationships, it's lauded for consumers. Credit card tarts shift debt from 0% deal to 0% deal to ensure the minimum possible cost for their debts. This is the cheapest way to use credit cards, but it takes discipline and a good credit score.

How to tart

If you're a new tart, the process is pretty simple.

• Get a 0% purchases card

  This is a card that you can spend on, and all the spending will be at 0% for a set period. See the longest 0% deals below.

• Ensure you make the repayments

  All "0% interest" means is there is no cost to the borrowing; it still needs to be repaid. Ensure you make at least the minimum repayments to avoid being fined, or worse, having the 0% deal withdrawn, meaning you need to pay the expensive standard rate.

• Move or repay the debt BEFORE the 0% period ends

  At the end of the 0% period the rate will jump to the standard APR which will usually be around 20%. At this point you either need to have the card cleared, or shift it to a new card with a 0% Balance Transfer deal. If you still haven't repaid the debt when that deal closes, shift it again.

To tart or not to tart?

Tarting is without doubt the cheapest method, but takes active management and you need to stay on top of it. If not, there's a big warning...

Unless you shift the debt before the 0% period ends, it only takes a couple of months before all the gain is lost.

The other thing that's important to understand is that to tart, you're going to need a good credit history, so it's important to Check Your Credit Rating, which can be done for free before you start. Plus the nature of repeated applications can have an impact on your score.

So if you're going to take well over a year to repay and aren't good with money, or have a poor credit score, then it's best to stick with the best long term low rate deal instead.

The size of the saving

Someone spending �400 each month and repaying �150 per month on a on a First Direct Visa card at 17.9% would pay �300 interest in year one. On the Tesco card, they'd pay nothing in the first 12 months.

Over three years the charge with First Direct is an enormous �2,800. Tesco, as the rate jumps to 16.9%, costs �2,100. But Sainsbury's costs only �1,130, while a good Credit Card Tart would pay nothing.