Credit Cards: Interest Free Cards

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There are numerous credit card and current account deals on offer to choose from and it can be a daunting task to find the one that suits you best. For those with access to the internet there are many useful money comparison websites. For those who do not have access to the internet many Sunday Newspapers have a Money Section which list the best deals, however these are not as comprehensive as the internet listings.
Before searching for the best deals it is wise to consider exactly what your requirements are to enable you to narrow down the selection available to you. When searching for credit card deals there are a number of different incentives depending on your circumstances..
Interest free cards can be a useful way of spreading the cost of a large purchase over a long period. There is usually a period of grace between 3 and 18 months when no interest is charged on the balance, however, once this period expires the interest rate can be very high so the idea is not to have an outstanding balance at the end of the no interest period. Provided you are strict enough to pay off the debt before this date this is a very good cheap way of borrowing money but if you don’t pay off the debt it can work out to be very expensive.
Balance transfer deals are useful if you have an existing credit card which has an outstanding balance on it and are looking to reduce the interest payment. Some card providers tempt new customers with 0% balance transfer cards which allow a period of time in which no interest needs to be paid on outstanding balances. You would usually have to pay a one off transfer fee as a percentage of the debt being transferred and any additional spending on the new card is usually expensive.
For example, Barclaycard are cur...

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...2,500. After 12 months the interest rate falls to 1% AER. The account must be funded each month with a minimum of £1,000 and for the first 12 months the overdraft rate is 0%.
The Santander 123 account pays cashback on your household bills and 1% cashback on your Santander Mortgage. There is a £2 monthly account fee and a monthly funding requirement of £500. The account pays an interest rate of 3% on balances between £3,000 and £20,000 and for the first 4 months the overdraft rate is 0%.
There is also a Marks & Spencer current account which entitles those opening an account to £100 on a Marks & Spencer gift card, plus 1 reward point for every £1 spent in the store. It's worth bearing in mind though that you will need to spend £500 in order to qualify for a £5 voucher! The account also offers an automatic £500 overdraft the first £100 of which is interest free.

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