MegaSack DRAW - This year's winner is user - rgwb
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I'm not particularly clued up on credit cards; although I have them and use them I've always (with one exception) paid up in full when the statement comes through each month. Looking at spending circa £1500 on a single purchase and a 0% purchase credit card seems to be one way to do it; I have the savings but I'd rather leave savings as savings and pay off over several months.
So, looking at [url= http://www.moneysupermarket.com/credit-cards/purchases/ ]moneysupermarket.com[/url] there are several cards that offer 0% over fifteen/sixteen months - I'd pay off over half that in all likelihood.
So, where's the catch - how do the they make their money..? When it says 'Representative Example: If you spend £1,200 at a purchase interest rate of 16.9% (variable) your representative APR will be 16.9% (variable).' - is that the interest that kicks in should I fail to repay in the fifteen/sixteen months..?
They make money in two ways;
The merchant pays them a percentage of the purchase price.
Folk will carry on using the CC for other purchases and so will end up paying interest.
They hope you'll make big purchases, tempted by 0%, and then not clear the balance before the 0% period ends and then they make money out of charging you interest.
they make there money on the people that don't pay it off and the fees from shops I think, most don't pass it on directly it's just absorbed some places do hence 1-2% fees when paying by credit card in some places
HTH
Yep. They rely on the fact that enough people will not pay it off in time then get stung if so much as a day late! However if you are organised it is a great idea IMO.
Thanks.
So, as long as I'm disciplined enough to repay well in advance of that period and don't use the card for anything else - I'm essentially getting interest free credit..?
They make money from selling your details on to other companies. Just say No.
The catch is human nature, they are hoping you will not have the will power/self control etc to pay it off, rather let it sit there. If you do trust yourself, then do it. You will also have to make the minimum payments each month ~3%
IF YOU PAY THE AMOUNT OFF IN THE ALLOTED TIME, THERE IS NO CATCH.
oops, sorry for shouting.. 😳
Yep. I use my CC for most purchases and pay it off every month. Costs me nowt. Get one with some sort of Reward scheme and you can "make money" with it.
i do as scotroutes does.
except do all my normal spending on it - make minimum payments
save the money id use to pay it off and clear it out once the cards full - and thats only because the rewards for using the card outweighs the value of the interest gained.
Used to do exactly what he did when i didnt have a 0% card.
Get one with some sort of Reward scheme and you can "make money" with it.
I already make a fiver a month that way! This would be a new credit card for one singular purchase.
Does your singular purchase use 23mm tyres?
Does your singular purchase use 23mm tyres?
😉