Question about Credit Cards

Know_The_Ledge

Looking to go on holiday and was thinking about applying for a 0% on new payments credit card and using that to pay for the holiday and then paying off the total off the holiday over a 3 month period. Once the holiday is paid for I will then cancel my credit card so it can't be used again.

Is this a good idea? Will I be liable for penalty payments for using my credit card in this way

Many Thanks
x

NickX

Know_The_Ledge wrote: »

Is this a good idea? Will I be liable for penalty payments for using my credit card in this way

Yes its a good idea, although I don't know why you would want to cancel because having a Credit Card can be very useful for day to day living.

If you are thinking of using the card abroad, Abbey Zero offer commission free foreign currency transactions and offer 0% for 6 months on Balance Transfers and Purchases.

Apply in plenty of time before you actually need it though.

Provided you pay back at least the Minimum Payments required and before the Due Dates you will not be liable for any penalty payments.

Know_The_Ledge

I was thinking of cancelling the Credit Card after I had paid for the holiday as I already have another credit card which I am paying off and don't want to get into a situation where I owe more money than I can pay back

NickX

Know_The_Ledge wrote: »

I was thinking of cancelling the Credit Card after I had paid for the holiday as I already have another credit card which I am paying off and don't want to get into a situation where I owe more money than I can pay back

Ok sure, I understand your thinking.

However, if your current card is not on a promotional deal, you may benefit from transferring the balance to the new one and benefit from 0% on Balance Transfers.

Care is needed if you are using the same card for Purchases and Balance Transfers - you can only really safely do this if both promotions have identical End Dates.

latecomer

One downside is that some travel agents charge a fee for using credit cards. We booked a skiing holiday for 12 folk a couple of years ago and found that the travel agents wanted something like 2% for using a visa. So before you go down this route make sure they dont charge extra for credit cards.