CoverMap0% purchase vs balance transfer: the short answer
Both card types offer 0% interest for a set period. The difference is what the 0% applies to.
- A 0% purchase card covers new spending. It suits a planned large purchase you want to spread over time.
- A 0% balance transfer card covers debt you move from another credit card. It suits existing card debt that is costing you interest.
Some cards, often called all-rounders, offer 0% on purchases and balance transfers at the same time.
How does a 0% purchase credit card work?
MSE describes a 0% spending card as one that “offers a fixed number of consecutive months where no interest is charged on new purchases.” You still get a monthly statement and must make at least the minimum payment each month.
Key points from MSE’s guide:
- Cash is not covered. Cash withdrawals are not included in the 0% rate, and interest is usually charged from the date you take the cash out.
- Balance transfers may not be included. Some purchase cards let you transfer a balance at the same 0% for a fee of around 3%, but many don’t.
- When the 0% ends, “you’ll start accruing interest on any unpaid balance at the card’s APR.”
A 0% purchase deal is different from the normal interest-free days on a card. Those only last until each statement’s due date and only if you clear the balance in full. A 0% deal lets you carry a balance for months without interest. Read more in our guide to credit card APR explained.
How does a 0% balance transfer card work?
You apply for a new card and ask it to pay off the balance on your old card. The debt then sits on the new card at 0% for the promotional period. MSE explains the main rules:
- A one-off fee: a percentage of the debt you transfer. “Typically, the longer the period, the higher the fee.” On the top deals in MSE’s table, fees ran from 2.9% to 3.49%.
- A 60–90 day window: “To get the 0% and advertised fee, you usually have to transfer within the first one to three months.”
- Not within the same banking group: you can’t transfer between cards from the same bank or banking group. MSE gives NatWest, RBS and Ulster Bank as an example.
- New spending may cost interest: terms for spending on a balance transfer card vary, so check before you use it for purchases.
Side-by-side comparison
| Feature | 0% purchase card | 0% balance transfer card |
|---|---|---|
| What the 0% covers | New spending | Debt moved from another card |
| Longest deal (MSE, Sep 2026) | Up to 26 months | Up to 38 months |
| Upfront fee | None on purchases | One-off fee, 2.9%–3.49% on top deals |
| Deadline to use the deal | A fixed number of consecutive months | Usually transfer within 60–90 days |
| Moneyfacts average term (Dec 2025) | 291 days | 585 days |
| Cash withdrawals | Not covered by 0% | Not covered by 0% |
| After the 0% ends | Card’s standard rate on the remaining balance | Card’s standard rate on the remaining balance |
Source: MoneySavingExpert (pages dated 11 Aug–24 Sep 2026); Moneyfacts (published 2 Jan 2026). Checked October 2026.
Longest 0% balance transfer cards
MSE’s balance transfer table, cross-checked against its credit card hub dated 24 September 2026, listed these deals:
| Card | 0% balance transfer | Fee | Rep APR |
|---|---|---|---|
| TSB | Up to 38 months | 3.49% | 24.9% |
| HSBC | 36 months | 3.09% | 24.9% |
| Virgin Money | 36 months | 3.1% | 24.9% |
| Tesco Bank | 36 months | 3.45% | 24.9% |
| Capital One | Up to 36 months | 2.9% | 28.9% |
| NatWest | Up to 36 months | 3.1% | 24.9% |
| Barclaycard | Up to 36 months | 3.15% | 24.9% |
Source: MoneySavingExpert balance transfer table and credit card hub (24 Sep 2026). Checked October 2026. Terms change often.
“Up to” vs definite: MSE explains that “up to” means some accepted applicants get a shorter 0% term. A definite deal gives every accepted applicant the stated term. In February 2026, MSE reported that TSB’s up-to-38-month deal was the longest it had seen since 2018, with some applicants getting 35 or 32 months instead.
Longest 0% purchase cards
| Card | 0% on purchases | MSE page date |
|---|---|---|
| M&S Bank | Up to 26 months | 24 Sep 2026 |
| TSB | Up to 26 months | 24 Sep 2026 |
| Lloyds Bank | Up to 25 months | 11 Aug 2026 |
| HSBC | Up to 24 months | 11 Aug 2026 |
| Barclaycard | Up to 24 months | 11 Aug 2026 |
| Tesco Bank | 22 months (definite) | 24 Sep 2026 |
Source: MoneySavingExpert credit card hub (24 Sep 2026) and 0% purchase cards page (11 Aug 2026). Checked October 2026. Terms change often.
MSE listed a representative APR of 24.9% for the M&S Bank, TSB, Lloyds Bank, HSBC and Barclaycard deals. Check the live APR for any card before you apply.
0% purchase and 0% balance transfer on one card
All-rounder cards give 0% on both new purchases and transferred balances. The balance transfer period is often shorter than on a specialist card. MSE’s table dated 18 September 2026:
| Card | 0% purchases | 0% balance transfer | BT fee | Rep APR |
|---|---|---|---|---|
| Lloyds Bank | Up to 25 months | Up to 23 months | 2.99% | 24.9% |
| TSB | Up to 26 months | Up to 18 months | 3.49% | 24.9% |
| HSBC | Up to 24 months | Up to 17 months | 3.49% | 24.9% |
| NatWest | Up to 23 months | Up to 21 months | 3.49% | 24.9% |
| Tesco Bank | 21 months | 21 months | 2.95% | 24.9% |
| Virgin Money | 20 months | 20 months | 2.95% | 27.9% |
Source: MoneySavingExpert 0% balance transfers and spending (18 Sep 2026). Tesco Bank and Virgin Money terms are definite. Checked October 2026.
Money transfer cards
A money transfer card is a third option. MSE says it “pays cash straight into your bank account, for a one-off fee”, then charges 0% for a set period. You usually need to transfer within 60–90 days. On 28 September 2026, MSE listed Tesco Bank at 14 months 0% with a 3.99% fee, and Virgin Money at 12 months 0% with a 4% fee. Fees are higher than on most balance transfer deals.
What the market looks like on average
Moneyfacts figures for December 2025 show deals getting longer:
- The average 0% balance transfer term was 585 days, a three-year high, up from 512 days in December 2024.
- The average 0% purchase term was 291 days, up from 262 days.
- The average balance transfer fee rose from 2.44% to 2.51% over 2025.
The longest deals in MSE’s tables are well above these averages, but they are not offered to everyone.
Watch out: missed payments and the end of the 0%
Missed payments. On a purchase card, MSE warns that if you miss a minimum payment, “you may lose your 0% deal and get a charge of around £12”. It can also harm your credit history. On balance transfer cards, “some card providers will withdraw the deal”. Setting up a direct debit for at least the minimum helps avoid this.
When the 0% ends. Any balance left starts to attract interest at the card’s standard rate. A simple plan is to divide what you owe by the number of 0% months and pay that each month. If you can’t clear it, some people move the remaining balance to a new balance transfer deal, but you will pay another fee and need to be accepted.
Which suits which situation?
- Existing card debt costing you interest: a balance transfer card targets this. Barclaycard gives an example: £1,200 at 19.9% APR, repaid at £100 a month, costs £135 in interest over 14 months, while a 0% balance transfer would cost about £6 in fees over 12 months.
- A planned purchase you want to spread out: a 0% purchase card avoids the transfer fee and covers new spending.
- Both: an all-rounder gives 0% on each, usually with a shorter transfer period than a specialist card.
- Debt that isn’t on a credit card: a money transfer card can pay cash into your bank account, at a higher fee. Our debt consolidation guide covers other options.
Your credit history affects which deals you are accepted for. See how to improve your credit score and our wider guide to UK credit cards.
If you are struggling with debt, get free debt advice before taking on new credit.
Frequently Asked Questions
How does a 0% purchase credit card work?
You pay no interest on new purchases for a set number of months. You must still make at least the minimum payment each month. When the 0% period ends, any unpaid balance starts to attract interest at the card's standard rate.
What is the difference between 0% purchase and 0% balance transfer?
A 0% purchase deal covers new spending and usually has no fee. A 0% balance transfer deal covers debt moved from another card and charges a one-off fee, typically around 3% on the longest deals in September 2026.
Can I get 0% on purchases and balance transfers on one card?
Yes. All-rounder cards offer both. In MSE's table dated 18 September 2026, Lloyds Bank offered up to 25 months on purchases and up to 23 months on balance transfers.
What does 'up to' mean on a 0% card?
It means some accepted applicants get a shorter 0% period than advertised. A definite deal gives every accepted applicant the stated term.
Can I transfer a balance between cards from the same bank?
No. You can't usually transfer between cards from the same bank or banking group, for example NatWest, RBS and Ulster Bank.
What happens if I miss a payment on a 0% card?
You may lose the 0% deal, pay a late fee (MSE says around £12 on purchase cards) and damage your credit history.
Do 0% cards cover cash withdrawals?
No. Cash withdrawals are not covered by 0% deals, and interest is usually charged from the date of the withdrawal.
Sources
- MoneySavingExpert – Balance transfer credit cards (checked Oct 2026)
- MoneySavingExpert – Credit cards hub (24 Sep 2026)
- MoneySavingExpert – Best 0% credit cards (11 Aug 2026)
- MoneySavingExpert – 0% balance transfers and spending (18 Sep 2026)
- MoneySavingExpert – Money transfer cards (28 Sep 2026)
- MoneySavingExpert – Tips, 24 Feb 2026
- Moneyfacts – How to cut the cost of debt in 2026 (2 Jan 2026)
- Barclaycard – What is a credit card APR?
- HSBC – Credit card eligibility checker