• Who would benefit from a 0% purchases credit card?

All credit cards tend to offer features focussed in particular areas to suit a certain type of user. Whether it be low balance transfer rates, no annual fees, rewards, exclusive services or a high number of interest free days.

0% purchase credit cards are designed for those that want to spend, but would benefit from spreading the cost of those purchases over a longer period of time.

• What you should be aware of?

It is important to remember that you will still need to make at least the minimum repayment amount on or before the monthly bill date. This way you can avoid paying any interest for the 0% period, so if you had a balance of $1000 and your minimum repayment amount was 3%, as long as you paid the initial $30, you would not incur any interest on the other $970. If you went the next month without using your card, the 3% payment would then be at $29.10, and so on.

• What to remember

Although this is great for avoiding extra unnecessary charges, you should make a repayment plan to ensure the balance is paid off in full before the 0% period expires. This would allow you to make full use of your card and you would only ever have to pay the annual fee.

If you're not planning on borrowing a substantial amount you may wish to go for a card that offers no annual fees and a low rate on purchases. This will allow you to pay a small percentage of interest on your balance and won't cost you anything more, as long as you stick to the golden rule and make at least the minimum payment at the end of each billing period.