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  • FIRST POST
    • AK92
    • By AK92 16th Oct 16, 1:55 PM
    • 8Posts
    • 1Thanks
    AK92
    Credit Card T's and C's question
    • #1
    • 16th Oct 16, 1:55 PM
    Credit Card T's and C's question 16th Oct 16 at 1:55 PM
    Hi, first time getting a credit card. Need it for buying a rail season ticket which extends over several months (so a big expense), and I want to make the minimum monthly payments on this spend so as to lessen the impact on my bank balance.

    It's a Virgin Credit Card which offers 0% for 27 months on purchases (then 19.9% PA). Found it on the 0% CC section of MSE (also looking at the Tesco one).


    However, from looking from the Ts and Cs, I'm a bit confused as to some of the text:

    Minimum repayment: This will be the greater of:

    A: £25, or the whole balance shown on your statement if it is less, Or
    B: The interest and any default charges and annual card fee, plus 1% of the remaining balance.

    It also says:

    If you do not pay off your balance in full, payments we receive will be allocated to pay balances with the highest interest rates first, before paying those with lower interest rates.

    And:

    You will not pay interest on purchases if you pay your balance in full and on time

    I'm assuming the above conditions apply only AFTER the 27 months of 0% on purchases has expired?


    Also, realistically what is the max limit these cards offer, as its £3k+ for the season ticket I want to buy

    Sorry if its a stupid question, just want to make sure I'm understanding this right

    Thanks
Page 1
    • SuperHan
    • By SuperHan 16th Oct 16, 2:08 PM
    • 1,877 Posts
    • 1,069 Thanks
    SuperHan
    • #2
    • 16th Oct 16, 2:08 PM
    • #2
    • 16th Oct 16, 2:08 PM
    I'm assuming the above conditions apply only AFTER the 27 months of 0% on purchases has expired?
    Originally posted by AK92
    Kind of right.

    They will be applying interest, just at 0%, so there is effectively no interest. You should read all of the above as though they apply, but with 0% interest until the 27 months is up.

    And it wouldn't be unusual to get £3k - but it depends hugely on how they perceive your credit rating.
    • bengal-stripe
    • By bengal-stripe 16th Oct 16, 2:23 PM
    • 3,081 Posts
    • 1,970 Thanks
    bengal-stripe
    • #3
    • 16th Oct 16, 2:23 PM
    • #3
    • 16th Oct 16, 2:23 PM
    I'm assuming the above conditions apply only AFTER the 27 months of 0% on purchases has expired?
    Originally posted by AK92
    That's correct, once the promotional rate has expired (or hasn't been cancelled early, due to the card holder breaking the rules of card use) the regular terms will apply.

    Also, realistically what is the max limit these cards offer, as its £3k+ for the season ticket I want to buy
    Originally posted by AK92
    These cards are quite difficult to come-by, particular for someone new to cards. Also 3k+ is quite a high limit for a first CC.
    • TheShape
    • By TheShape 16th Oct 16, 2:41 PM
    • 450 Posts
    • 227 Thanks
    TheShape
    • #4
    • 16th Oct 16, 2:41 PM
    • #4
    • 16th Oct 16, 2:41 PM
    If you get a credit limit lower than the cost of your season ticket you may be able to part pay with cash/debit card and pay the rest on the 0% credit card.

    You could use the Credit Card Eligibility Calculator on the main site to get an idea of your chances before applying.
    • Nebulous2
    • By Nebulous2 16th Oct 16, 3:14 PM
    • 1,279 Posts
    • 742 Thanks
    Nebulous2
    • #5
    • 16th Oct 16, 3:14 PM
    • #5
    • 16th Oct 16, 3:14 PM
    Hi, first time getting a credit card. Need it for buying a rail season ticket which extends over several months (so a big expense), and I want to make the minimum monthly payments on this spend so as to lessen the impact on my bank balance.
    Originally posted by AK92
    To maintain the 0% you need to abide by the conditions of the card. So make minimum payments on time - with a direct debit being one way of making sure they happen.

    I would caution against making minimum payments though. The problem with 27 months is that extends way beyond the timescale of your season ticket. In other words you would land up needing a new season ticket while still paying for the old used one.

    In general try to repay something within its useful lifespan. Many people take car loans over 5 years while only intending to keep their car 3. That can lead to ever increasing debt.

    One way around this would be to save the money for the ticket separately then pay off the credit card just before the 0% runs out. That way you get the benefit of the 27 months without going deeper and deeper in.
    • AK92
    • By AK92 16th Oct 16, 7:41 PM
    • 8 Posts
    • 1 Thanks
    AK92
    • #6
    • 16th Oct 16, 7:41 PM
    • #6
    • 16th Oct 16, 7:41 PM
    Thanks guys,

    The minimum repayment amount includes interest though, so while its 0% for purchases for x months, I would still be paying interest per month as part of the monthly repayment arrangements.

    This doesn't make sense to me, perhaps someone can clarify this
    • jonesMUFCforever
    • By jonesMUFCforever 16th Oct 16, 7:51 PM
    • 23,190 Posts
    • 10,539 Thanks
    jonesMUFCforever
    • #7
    • 16th Oct 16, 7:51 PM
    • #7
    • 16th Oct 16, 7:51 PM
    Thanks guys,

    The minimum repayment amount includes interest though, so while its 0% for purchases for x months, I would still be paying interest per month as part of the monthly repayment arrangements.

    This doesn't make sense to me, perhaps someone can clarify this
    Originally posted by AK92
    You could purchase the ticket using any credit card then get a 0% balance transfer card to shift it to.
    As others have indicated you need to pay it off within 12 months or next year you will need even more credit to renew your ticket and pay back the remainder of this years.
    What goes around - comes around
    give lots and you will always receive lots
    • YorkshireBoy
    • By YorkshireBoy 16th Oct 16, 7:52 PM
    • 28,332 Posts
    • 16,137 Thanks
    YorkshireBoy
    • #8
    • 16th Oct 16, 7:52 PM
    • #8
    • 16th Oct 16, 7:52 PM
    You get the card and spend £1,000 immediately.

    The monthly minimum payment is 1% plus interest.

    So it's 1% + £0 = £10

    The opening balance next month is £990

    You don't make any purchases in month two

    The following month your minimum payment is

    1% + £0 = £9.90

    And so on...

    Only when the 0% interest intro period ends will there be interest charged.
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