0% Purchases on Credit Cards

whiskey1983

Hi,

I'm new to this so hopefully someone can give me some advice please? I owe £800 for my TV on a buy now, pay December 2008 deal. I could pay this off in December but I've seen credit cards with 0% on purchases until Oct 2009 (Capital One) so I'd rather keep it in my ISA for a bit longer.

I was wondering if I paid for it on a credit card with a 0% purchase offer would it be classed as a purchase or a balance transfer (as it is currently on a finance agreement) and how would I keep it at 0% for the period - do I have to pay the minimum each month?

Thank you in advance!

David

leicsmarkyr

Highly unlikely you will be able to pay a credit agreement with a credit card - as its credit on credit. You might be able to though.

If you do pay will be classed as a purchase and you will need to pay the minimum each month. About 2-2.5% of the balance.

YorkshireBoy

Better to put it on Virgin (or some other MBNA run card) or the Egg Card (Visa) by super balance transfer.

It'll cost you approx 3% in fees but you'll get 13-15 months in which to repay it at 0% interest.

You could do it cheaper, even at no cost, but that would involve 2 credit cards.

Further information: http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#MBNA

whiskey1983

Forgive my ignorance but is buy now, pay later really a credit agreement or more of a deferred payment option? I'm not making any payments and as long as I pay by December there will be no credit agreement surely?

Would the credit card company know what I was paying off with their card or would the only know who I'm paying?

YorkshireBoy

whiskey1983 wrote: »

Forgive my ignorance but is buy now, pay later really a credit agreement or more of a deferred payment option? I'm not making any payments and as long as I pay by December there will be no credit agreement surely?

You signed a credit agreement before you took delivery of the goods.

Would the credit card company know what I was paying off with their card or would the only know who I'm paying?

I suspect the problem won't be with your card provider, but with the 'deferred payment' provider.

Why should they take a card payment and incur a 2-3% merchant fee for doing so?

You could try making a payment before December on an ordinary card to see if you can pay that way, but I think you'll find yourself going the SBT route I suggested earlier.

JimmyTheWig

Agree with YorkshireBoy. I wouldn't have thought that the people you owe for the TV won't take credit card. If they do then I see no problem with this being a purchase and so you can do what you want to do.

If they do take credit card they might charge a fee for doing so. Depending on how much the fee is and how long the 0% deal is will determine whether this is worth you doing or not.

whiskey1983

Thank you both for your help. I've just realized how stupid I sound as of course I've signed a credit agreement! Thanks for your patience as help!