Numpty question; 0% purchase credit cards…

Home Forum Chat Forum Numpty question; 0% purchase credit cards…

Viewing 14 posts - 1 through 14 (of 14 total)
  • Numpty question; 0% purchase credit cards…
  • Premier Icon scotroutes
    Subscriber

    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.

    Premier Icon footflaps
    Subscriber

    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.

    29erKeith
    Member

    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

    Premier Icon zilog6128
    Subscriber

    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.

    Premier Icon househusband
    Subscriber

    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..?

    ohnohesback
    Member

    They make money from selling your details on to other companies. Just say No.

    Premier Icon unklehomered
    Subscriber

    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%

    Premier Icon ton
    Subscriber

    IF YOU PAY THE AMOUNT OFF IN THE ALLOTED TIME, THERE IS NO CATCH.
    oops, sorry for shouting.. 😳

    Premier Icon scotroutes
    Subscriber

    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.

    trail_rat
    Member

    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.

    Premier Icon househusband
    Subscriber

    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.

    Premier Icon scotroutes
    Subscriber

    Does your singular purchase use 23mm tyres?

    Premier Icon househusband
    Subscriber

    Does your singular purchase use 23mm tyres?

    😉

    Premier Icon househusband
    Subscriber

    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 moneysupermarket.com 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..?

Viewing 14 posts - 1 through 14 (of 14 total)

The topic ‘Numpty question; 0% purchase credit cards…’ is closed to new replies.