Credit card question

No1newts · 16 Feb 2014 at 19:29

Hi chaps, quick question regarding credit cards as I tend to avoid them.

I'm tempted to get one as there are a few things I need/want at the moment. Saving up is a pain for me but alternatively I have no issue making monthly payments.

Basic idea was to get a card with 0% over whatever period and pay back a bit a month so its clear before the 0% period is up. Now, on looking on the websites (and I will more than likely be misreading) they seem to say that if you buy something you have 56 days to pay it all off or interest starts up again? Surely this defeats the purpose of 0% for a defined period?

Like I said I have probably misread but for anyone using cards can you clear this up for me?

TA.

Tuppy_Glossop · 16 Feb 2014 at 19:32

Are you looking at 0% on the balance transfer ?

cainer · 16 Feb 2014 at 19:32

the 0% might just be for balance transfers

Jokester · 16 Feb 2014 at 19:33

The 0% figure is normally for transfers from other credit cards, so if you get a card and just start spending on it you will start accruing interest on it if you don't pay it off fully within the 40days or whatever the monthly limit is. Of course you can spend it all on one card then immediately transfer it to a 2nd card to get the 2nd cards balance transfer 0% deal, but they can still catch you out I think in terms of the order at which you pay the transfer off and any new purchases on the 2nd card.

lee1101 · 16 Feb 2014 at 19:34

As above, make sure it's 0% on purchases and not just balance transfers

Lartyconshayo · 16 Feb 2014 at 19:36

The card will have an introductory period of 0% be it 6,12,16, or however many months it is. Be warned that the headline rates ( 17 months 0% interest ) may not be offered to you if you don't have a good credit rating.

Once that period is up then it will revert to interest charged if the balance in full is not paid off within the required time limit

Read this for more info

http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

No1newts · 16 Feb 2014 at 19:37

Yes the ones I looked at were 0% purchase.

http://www.santander.co.uk/csgs/Sat..._GB&pagename=Abbeycom/Page/WC_ACOM_TemplateW2

Here's an example to see if I'm just misreading.

Tuppy_Glossop · 16 Feb 2014 at 19:43

You are right. 56 days of interest free from moment of purchase. You'll be splitting your purchases up into two monthly payments if you want 0%.

Jokester · 16 Feb 2014 at 19:46

18 months 0% on spending is good. Just make sure you pay it off before the introductory offer is finished (or transfer to another card with 0% on transfers!).

rishy · 16 Feb 2014 at 19:48

have a look at

http://www.which.co.uk/money/credit...s/best-credit-card-deals-with-0-on-purchases/

after the promo has finished and its not paid off, balance transfer it to another card

Jokester · 16 Feb 2014 at 19:49

What's happened to Visa these days? Rarely see their cards offered by anyone now a days.

No1newts · 16 Feb 2014 at 19:58

Tuppy_Glossop said:
You are right. 56 days of interest free from moment of purchase. You'll be splitting your purchases up into two monthly payments if you want 0%.

That makes 0% card pointless then as it may as well be interest free for 56 days not 18 month.

Is the 56 day thing standard?

Tuppy_Glossop · 16 Feb 2014 at 20:04

They usually give at least a month.

Jokester · 16 Feb 2014 at 20:05

No1newts said:
That makes 0% card pointless then as it may as well be interest free for 56 days not 18 month.

Is the 56 day thing standard?

The 56 day thing only kicks in after 18months.

The 56 days is fairly standard as you get a bill every month and have about a month to pay it, so if you buy something the day your statement is generated you get the full 56days, but further into the month you'll get less time interest free.

No1newts · 16 Feb 2014 at 20:14

Jokester said:
The 56 day thing only kicks in after 18months.

The 56 days is fairly standard as you get a bill every month and have about a month to pay it, so if you buy something the day your statement is generated you get the full 56days, but further into the month you'll get less time interest free.

So 56 day thing is definitely only when it kicks in? So if I'm paying say £20 a month for X amount of time, as long as I finish it pre interest kick off its all good?

It just doesn't seem very clear is all.

Pawnless Endgame · 16 Feb 2014 at 20:15

Have you tried applying for an overdraft on your current account? I know a few people at work has has them and the limit is typically £500.

No1newts · 16 Feb 2014 at 20:16

I get a £1 charge per day for being in my overdraft so stupidly a credit card is cheaper

Jokester · 16 Feb 2014 at 20:19

No1newts said:
So 56 day thing is definitely only when it kicks in? So if I'm paying say £20 a month for X amount of time, as long as I finish it pre interest kick off its all good?

It just doesn't seem very clear is all.

Yup, for the first 18months the interest rate is 0%, then after that it's 18.9% AER, so make sure by that point it's all paid off or you've transferred it off to another card with 0% on balance transfers.

No1newts · 16 Feb 2014 at 20:20

Jokester said:
Yup, for the first 18months the interest rate is 0%, then after that it's 18.9% AER, so make sure by that point it's all paid off or you've transferred it off to another card with 0% on balance transfers.

Cheers mate, much appreciated!

Canary Wundaboy · 16 Feb 2014 at 20:29

Jokester said:
Yup, for the first 18months the interest rate is 0%, then after that it's 18.9% AER, so make sure by that point it's all paid off or you've transferred it off to another card with 0% on balance transfers.

I wish I could upvote posts, this one was helpful to the OP. Definately support 0% credit cards but be warned, if you don't manage your finances properly you'll end up like me, paying ~£10k worth of debt off over the past 2 years, working in a relatively well-paid job but having sod-all money to spend on stuff you actually WANT.