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Halifax offers 0% on purchases for unprecedented 20 months

Halifax offers 0% on purchases for unprecedented 20 months
Date of Publication: Thursday, 28 August 2014 10:43

Halifax is hoping to allure spenders with a new market-leading credit card that offers 0% on purchases for 20 months.

 

The Purchase Credit Card moves straight to the top of the tables ahead of Tesco’s Clubcard for Purchases, which offers 19 months at 0%.

 

These cards are ideal for spreading the cost of purchases over a longer period without incurring any interest.

 

The Halifax card also offers 6 months at 0% on balance transfers, with a low 1% balance transfer fee for balances transferred within the first 90 days.

 

The representative rate is from 18.9% APR, though some applicants will be offered a shorter 16 month 0% purchases duration with higher rates of 21.9% APR or 25.9% APR.

 

The shorter deal remains competitive during the offer period, though it’s not the ideal card for cash withdrawals or for spending once the 0% period has expired.

 

Customers interested in this card might look to reduce any debt on the card by this point or shift any remaining balance to a balance transfer card.

 

20 Months

The Halifax Purchases Card is the first to breach the 20 month barrier for purchases, which demonstrates the growing competition in the market.

 

The card allows customers looking to make a large purchase the opportunity to pay this back over a longer period without the added costs of servicing the debt.

 

So, a borrower who used the card for a £1,000 purchase could clear this debt through 20 monthly repayments of £50.

 

Provided that borrowers meet the minimum monthly repayment, they will be able to use the whole term to pay off this debt and it will cost them nothing further.

 

Without the offer, those paying the standard representative rate of 18.9% would be charged almost £175 in interest over the 20 month period.

 

Competitors

Customers looking for spending offers might also consider the Tesco Clubcard, which offers 19 months at 0% on purchases alongside loyalty points for Tesco customers.

 

Tesco Clubcard Credit Card 

Tesco Clubcard - 19 months at 0% plus loyalty points.

 

Cardholders earn one Clubcard point for every £4 they spend, which is boosted by an extra five points when spending at Tesco stores or Tesco petrol stations.

 

These points are only worth a penny in-store at Tesco, but offer more value when redeemed in the form of Tesco’s rewards vouchers.

 

Alternatively, the 123 Credit Card from Santander offers 18 months at 0%, alongside cashback worth up to 3%.

 

Santander 123 Credit CardThe card comes with an annual fee of £24 – waived for current account holders for the first year – but customers will receive 1% cashback on all supermarket spending, 2% cashback for any spending in department stores, and 3% on fuel and train fares (including Transport for London).

 

The bank also adds seasonal perks to the card, such as cashback on flights, hotels and travel agents.

 

Those who would prefer to spend less regularly and avoid the fee could opt for Santander’s simpler Credit Card for Purchases, which offers 18 months at 0% on purchases alongside 0% on balance transfers for 9 months.

 

Keith McDonald

Which4U Editor

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Thursday, 28 August 2014 10:43
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Top 5 Credit Cards

Card
Balance Transfers
Purchases
Typical APR (variable)
Apply
View Full Table >
N/A
N/A
18.9%
Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% (variable) your Representative APR will be 18.9% (variable).
0%
12 mths
0%
12 mths
15.9%
Representative Example: If you spend £1,200 at a purchase interest rate of 15.9% (variable) your Representative APR will be 15.9% (variable).

Advice

No foreign transaction fees on purchases and cash withdrawals abroad when made in the local currency. No cash withdrawal fees at home and abroad (interest is charged immediately on cash withdrawals and some independent ATM providers may charge a withdrawal fee).

Introductory Offer
Balance Transfer Rate: N/A
Balance Transfer Fee: N/A
Purchase Rate: N/A
Representative APR
Purchases: 18.9% p.a. (variable)
Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% (variable) your Representative APR will be 18.9% (variable).
Annual Rates
Balance Transfers: 18.9% p.a. (variable)
Cash Advance: 18.9% p.a. (variable)
Annual Fee: N/A
Standard Features
Interest Free Days: Up to 56 days
On-Line Banking: Yes
Approval Criteria
  • You are at least 18 years of age;
  • You have had a permanent UK address for at least the last 3 years;
  • You do not have a history of bad credit (in other words, county court judgements or bankruptcy);
  • You have an income in excess of £7,500.

Advice

Collect 0.5% unlimited cashback on all purchases in pounds sterling. Also, get commission free card purchases abroad!! No balance transfer fee applies for the first 3 months of account opening, after which time it will revert to 2.4% (Minimum £5)

Introductory Offer
Balance Transfer Rate: 0% for 12 mths
Balance Transfer Fee: N/A
Purchase Rate: 0% for 12 mths
Representative APR
Purchases: 15.9% p.a. (variable)
Representative Example: If you spend £1,200 at a purchase interest rate of 15.9% (variable) your Representative APR will be 15.9% (variable).
Annual Rates
Balance Transfers: 15.9% p.a. (variable)
Cash Advance: 27.9% p.a. (variable)
Annual Fee: N/A
Standard Features
Credit Limit: £25,000
Interest Free Days: Up to 56 days
On-Line Banking: Yes
Cashback
Standard Cashback Rate: 0.50%
Approval Criteria
  • YOU MUST HAVE A NATIONWIDE CURRENT ACCOUNT IN ORDER TO APPLY FOR THIS CARD
  • You are at least 18 Years of Age
  • You have an Excellent Credit History
  • You are a permanent resident/citizen of the UK
  • You earn over £5,000 per year