0% credit cards

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This topic has 13 replies, 6 voices, and was last updated 10 years ago by giantx4.

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0% credit cards
Offroading
Free Member

Ello,

I have a new credit card, i only have it for my upcoming holiday to the states. Hotel and car hire place require a credit card.

I don’t “need” a credit card, i never have.

It got me thinking though. My card is 0% on purchases for 18 months. Something about paying the minimum amount each month etc to validate that.

Now i could do with some new things…..

I gather (and this will probably sound dumb) but if i buy say £600 worth of stuff on the credit card, i don’t pay any interrest on it as long as i pay the minimum each month ?

As such i could spread the £600 out over 18 months correct ?

Posted 10 years ago

unklehomered
Free Member

Yup. Simple as.

They are of course hoping that like most people you lack the commitment to pay it all off, and they will then be able to charge you for it.

EDIT: just double check that applies for using it overseas as well.

Posted 10 years ago

Offroading
Free Member

Great.

So on say £600 any idea what the minimum monthly payment would be ?

Posted 10 years ago

FGF 701 The Hydrate Or Die Edition

AlasdairMc
Full Member

It’s normally about 2.5% of the outstanding balance isn’t it? It will be in the terms.

I find 0% cards to be a great alternative to interest free credit as you can haggle on price a lot easier when the retailer isn’t paying your interest for you.

Posted 10 years ago

fervouredimage
Free Member

Your minimum payment won’t be any more than a tenner but its not calculated to ensure you pay it off over the interest free period. You will need to pay more than that at some point during your 18 month period to clear the debt.

Posted 10 years ago

Offroading
Free Member

This is what it says

“to keep promotional rates you must pay at least the minimum payment by the due date and stay within your credit limit”

Monthly rate is 1.385%

Posted 10 years ago

fervouredimage
Free Member

Yeah, about £8 a month then.

Posted 10 years ago

Offroading
Free Member

That’s cool, i can pay it off next month.

I’ve just had to pay for car insurance, mot, tax, birthdays.

Next months pay cheque will more than cover it so i can pay it off then.

Posted 10 years ago

fervouredimage
Free Member

They are useful no doubt. Pay it off when you want within that interest free period, just make sure each month you at least pay the minimum to keep the interest free ‘alive’.

Posted 10 years ago

neilco
Free Member

What are you going to do next month when next months pay cheque has already been spent on this months bills? Don’t mean to sound smart, but this is the kind of trap that those credit card deals are aiming to catch you in.

Posted 10 years ago

Offroading
Free Member

Simple.

I don’t have that issue. I’ve set aside money from this month for all of this months stuff.

The pay next month will cover all my bills next month and the credit card easily.

Posted 10 years ago

neilco
Free Member

Fair enough, go for it 🙂

Posted 10 years ago

Offroading
Free Member

😆

Posted 10 years ago

giantx4
Free Member

So @offroading what are you buyin for £600???

Posted 10 years ago