Q: We are in the process of moving home and need to buy quite a lot of furniture as we are moving from a one-bed flat to a three-bedroom house. The move itself is using up all our savings, is there any way we can buy the new items we need without having to pay too much interest on anything we borrow to buy them?
A: Congratulations on your move. Yes, there are a number of ways you can borrow interest-free – the main three being interest-free credit cards, in-store interest-free credit and online services offering interest-free payments over a fixed period of time.
Interest-free credit cards have the advantage of letting you use them anywhere. As this article went to print, the M&S Bank Shopping Plus Offer had 24 months’ interest-free credit on all new spending and any balances transferred from existing cards. You also get M&S points to spend in store. After the interest-free period the interest rate increases to 21.9 per cent APR so make sure you have paid off the spending in the two-year period if you don’t want to be charged.
Sainsbury’s Bank also offers 24 months’ interest-free credit on both new spending and balance transfers and its rate rises to 21.9 per cent APR after the period ends. You get Nectar points on all spending but not everyone will be offered the 24 months interest-free. Applicants not meeting its criteria may be offered a shorter interest-free period.
