An important rule to follow when using credit cards is that a single card should not be used for both the balance transfer and purchases features.
While finding a card that allows you to not only make interest free purchases, but also transfer an existing balance and pay no interest for the specified period can prove to be a great help, credit cards should still always be used with caution, it has been reported.
While most plastic products offer customers useful features such as 0% balance transfer and purchases, Jane Baker points out in a lovemoney.com article that those that attempt to use the card for both of its 0% features could face unexpected charges.
The problems caused by using one credit card for both balance transfer and purchases can be substantial, she claims, is especially apparent in the Virgin Credit Card.
Although this credit card offers the longest period for 0% interest on balance transfers available on todays market, its interest-free period on purchases is less impressive, offering just three months.
And while the Virgin Credit Card sees borrowers receive discounts on goods and services bought from elsewhere within the Virgin Group after the 12-week offer is up, the lovemoney.com writer states that by doing so could cause unexpected problems for the user.
Ms Baker said: "If you keep spending on the card once the three months are up, taking advantage of all those juicy discounts, you'll fall into the negative payment hierarchy".
However, it could be possible for borrowers to avoid being hit by negative payment hierarchy should they opt for the Halifax All In One credit card. This is, she states, because the card offers customers 9 months 0% on purchases and balance.
She points out that people should ensure all debts owed on the cards are paid off by the 0% period is up, or the typical rate of 15.9 per cent will be added.
People on the search for the best interest free purchases card were also advised to consider the Tesco Credit Card, which she points out offers 12 months 0% on purchaseson the condition that at least the minimum monthly repayments are met.
The Tesco Clubcard was also praised by lovemoney.com writer Serena Cowdy who recently claimed that the 0% balance feature is “perfect for gradually paying back big expenses”.