0% credit card.

Kristoph · 28 Mar 2011 at 23:03

Hey,

Was going to buy a bike through 0% finance route with a company and pay it back over 12 months.

Bike I've found is at a sale price already, therefore the company won't do 0% finance. (they want 19%)

I was thinking get a credit card with 0% on purchases over 12 months, make the repayment required. Can even make overpayments.

My problem is I need the bike asap for commuting to work, otherwise I'd save a bit aside over 3 months and buy it.

Good/bad idea?

Obviously I'd cut the card up as soon as I receive it.

SiD the Turtle · 28 Mar 2011 at 23:05

Does your employer do the Cycle to Work scheme?

Deleted member 66701 · 28 Mar 2011 at 23:07

Kristoph said:
Obviously I'd cut the card up as soon as I receive it.

Wouldn't that make it rather difficult to use it to buy the bike? :confused:

No1newts · 28 Mar 2011 at 23:09

I know a lot of people who use the interest free periods on crefit cards then drop the card when it's up.

As long as you pay it off in time and don't get carried away then it's a good idea.

Tute · 28 Mar 2011 at 23:09

amigafan2003 said:
Wouldn't that make it rather difficult to use it to buy the bike?

I lol'd.

Kristoph · 28 Mar 2011 at 23:10

SiD the Turtle said:
Does your employer do the Cycle to Work scheme?

Its something I've enquired about today. I've just started a new job, and I think the problem for me would be that I'm on a 6 month induction/probationary period as with all new staff.

Which I'm fairly sure stops me from taking advantage of that. Otherwise I would

Kristoph · 28 Mar 2011 at 23:16

I've had a read over this; if I can get accepted for it does anyone see any problems with it?

http://money.marksandspencer.com/cards/credit-card/new-credit-card-offer/

DJMK4 · 28 Mar 2011 at 23:47

I went for a tescos 13 months 0% card on purchases and 9months 0% on balance transfers.

Only for emergencies

bloodline76 · 28 Mar 2011 at 23:57

It's a great idea. I got a new tv on my card recently in the same way. Only £100 left to pay off. I use the same system for all my major purchases even if I have the money.

Pluses are that you get to have your purchase early and you also get to gain interest on your own money.

As long as you have a little bit of self control a credit card can be a great thing. A little worrying that you mention that you have to cut it up immediately to stop yourself from spending.

Kristoph · 29 Mar 2011 at 00:10

bloodline76 said:
It's a great idea. I got a new tv on my card recently in the same way. Only £100 left to pay off. I use the same system for all my major purchases even if I have the money.

Pluses are that you get to have your purchase early and you also get to gain interest on your own money.

As long as you have a little bit of self control a credit card can be a great thing. A little worrying that you mention that you have to cut it up immediately to stop yourself from spending.

I don't need to cut it up, I've never had a credit card before, but I'd have no use for it after the purchase so I'd rather not in 9 months time find myself in a situation where I might be tempted. I'm fairly sensible when it comes to money that isn't mine.

bobbydigital · 29 Mar 2011 at 00:21

Basically done something similar, got a mortgage for a house which needed a little done. Maxed my current credit card and then used the 9 month balance transfer (new kitchen) and used the 13 month 0% to fix the roof and buy some other things around the house and get my car sorted all in one go. Have been paying it off perfectly and has worked out better than getting a loan. Normally I would save and buy or repair what was needed but this way I got my house and car sorted straight away and as long as you pay it off in time no interest

If you are sensible with your money and don't go on a shopping spree then you will be fine.

mrmoose · 29 Mar 2011 at 00:55

Kristoph said:
I've had a read over this; if I can get accepted for it does anyone see any problems with it?

http://money.marksandspencer.com/cards/credit-card/new-credit-card-offer/

The time-scales you're looking at to receive this card at the moment is a minimum of 2 weeks after making the initial application. If you haven't had a credit card before then don't be put off if you are not accepted due to acceptance criteria.

bloodline76 · 29 Mar 2011 at 01:32

Kristoph said:
I don't need to cut it up, I've never had a credit card before, but I'd have no use for it after the purchase so I'd rather not in 9 months time find myself in a situation where I might be tempted. I'm fairly sensible when it comes to money that isn't mine.

Just remember not to take out any of their insurance scams for job loss or you won't be making the card work for you as well.

Personally I have at least two credit cards active at a time. They always do offers for them and if you have willpower then don't be afraid to hang onto it.

bloodline76 · 29 Mar 2011 at 01:33

mrmoose said:
The time-scales you're looking at to receive this card at the moment is a minimum of 2 weeks after making the initial application. If you haven't had a credit card before then don't be put off if you are not accepted due to acceptance criteria.

He could just use his own bank. Most will offer a credit card if they are account holders. I know Natwest do and Halifax did.

Stretch · 29 Mar 2011 at 01:48

Kristoph said:
Its something I've enquired about today. I've just started a new job, and I think the problem for me would be that I'm on a 6 month induction/probationary period as with all new staff.

Which I'm fairly sure stops me from taking advantage of that. Otherwise I would

It shouldn't make any difference. Anyone leaving a job would owe their employer money after signing up to the ctw scheme regardless of how long they've been at the company.

Seft · 29 Mar 2011 at 09:55

It's a sensible idea. You can check on

https://www.moneysupermarket.com/credit-cards/smart-search/?productSelectionName=Purchases

to see which cards you're likely to be accepted for. M&S and Tesco are the best bets for purchase teasers at the moment. Given that you've suggested you could potentially overpay, you may also wish to consider a cashback/rewards card with a shorter 0% period.

Jedeye · 29 Mar 2011 at 10:24

Do it and maintain a modicum of self control and it will be fine.

If you find that later on you have not had said self control, then get another card with 0% interest and 0% on balance transfers and transfer the remainder to that one.

Your credit rating will have gone up several notches and you will have the bike early, and the credit card companies will not have gained any money from you. That last part is probably the most important.

boxman2000 · 29 Mar 2011 at 11:17

Save up for it and pay it off in one go, that is your cheapest route.

0% finance offers only have the interest incorporated into the price (probably 19% in this example!!)

Adam · 29 Mar 2011 at 11:21

boxman2000 said:
Save up for it and pay it off in one go, that is your cheapest route.

0% finance offers only have the interest incorporated into the price (probably 19% in this example!!)

Err what? A 0% credit card charges you 0% interest for the introductory period provided you meet the minimum payment criteria. No interest is applied for generally 6-12 months depending on the card.

boxman2000 · 29 Mar 2011 at 11:43

Adam said:
Err what? A 0% credit card charges you 0% interest for the introductory period provided you meet the minimum payment criteria. No interest is applied for generally 6-12 months depending on the card.

No, not talking about credit cards, I was talking about the price of the bike - it may have 0% finance but there will be a certain % factored into the price of the bike by the shop. If this isn't the case then the shop is either dumb and missed out on making money or very generous to it's customers!

I know a 0% card charges you 0%

Can't you get bikes from the Police Station for a few quid still? (i.e. unclaimed ones etc)

0% credit card.

Deleted member 66701

Deleted member 66701