Got a New Credit Card
- Thread starter Tenson
- Start date
Cav
pfm Member
Most zero interest is on credit card transfers and Barclays offer 18 months.
If you really have a credit card that charges no interest:
Which one is it, cos I could do things with that;
By all means use it to pay off your overdraft if you can save enough to pay off the zero interest before the card supplier charges you 35% on the outstanding balance.
If you really have a credit card that charges no interest:
Which one is it, cos I could do things with that;
By all means use it to pay off your overdraft if you can save enough to pay off the zero interest before the card supplier charges you 35% on the outstanding balance.
Check any small print on any link and snapshot the screen as well as wading through any sales / start-up pack that came with the card and then search the net for anything you do not fully understand. It may take a while but could save you a fortune over the next couple of years.
Minstrel SE
These go to eleven
Credit cards are evil so be fair warned! I use that word with consideration.
I doubt you will get free interest on cash transfers. Keep your spending on it right down.
There is no such thing as a free lunch. The intention is to have you eventually trapped at the maximum limit and paying the most interest which can be raised again at any time. If you are earning reasonable money you dont really need one so they target the poor or people struggling with finance.
Some companies have been overlending and Ive seen a few are at it again.
Yes we live in a society where credit is handy from time to time but these companies would not make a profit if everyone was able to pay them off quickly.
I doubt you will get free interest on cash transfers. Keep your spending on it right down.
There is no such thing as a free lunch. The intention is to have you eventually trapped at the maximum limit and paying the most interest which can be raised again at any time. If you are earning reasonable money you dont really need one so they target the poor or people struggling with finance.
Some companies have been overlending and Ive seen a few are at it again.
Yes we live in a society where credit is handy from time to time but these companies would not make a profit if everyone was able to pay them off quickly.
As others have said you will incur interest from Day 1 if you use it directly to get cash to pay off your O/D. This will cost more than your O/D.
So here's how you do it:
You cane the arse off it and buy everything you normally buy for cash with it - groceries, petrol, etc. This allows you to dent your overdraft. FFS don't go on a spending spree. Then with the money you have saved from not being caned by your bank, you note the date at which it must be repaid before you get interest charges and you clear it. Job done.
If you lack the will to pay it off IN FULL before they hammer you for interest, or you lack the will to not go on a spending spree, cut the bloody thing up now.
So here's how you do it:
You cane the arse off it and buy everything you normally buy for cash with it - groceries, petrol, etc. This allows you to dent your overdraft. FFS don't go on a spending spree. Then with the money you have saved from not being caned by your bank, you note the date at which it must be repaid before you get interest charges and you clear it. Job done.
If you lack the will to pay it off IN FULL before they hammer you for interest, or you lack the will to not go on a spending spree, cut the bloody thing up now.
rbrown
I think therefore I think I am
Double check that the zero percent doesn't only apply to balance transfers, I suspect it does. Balance transfers will probably incur a 3% fee, but still a worthwhile facility if you are transferring the balance from another credit card. Self discipline is the key though.
Rich
Rich
I have had a card previously, that allowed the full amount to be used for either balance transfer or transferred into my current account - yes I was surprised, but it was interest free ongoing apart from the initial fee, I think of 3%, so became a 3% loan and paid just in time.
deanf
pfm Member
It depends on the terms of course, but maybe use it for everything you spend and make the minimum payment by direct debit until the card's near the limit. The debt is still a debt, but it's low interest for a while. Well worth doing if you're in control.