A 0% for 6 months question!

kittykitten

OK, this might sound like a really stupid question, but I've never done this before. I've opened a M&S &More CC which has 0% interest on new purchases for first 6 months, so I intend to do the logical thing and put the money in a savings account then pay it all off after 6 months - I usually pay my CCs off in full every month but better I have the money than them, right?

Anyway what's puzzling me is will there be a minimum payment I need to make each month in the first 6 months, as there usually would be with a CC, or do I just literally pay absolutely nothing until just before the interest free period runs out?

clio

No you will have to make min payment that is 100% sure m8..

NickX

clio wrote: »

No you will have to make min payment that is 100% sure m8..

You MUST make the minimum payment and you MUST make it on time, otherwise you will incurr a fee and probably lose your 0% promotion altogether.

Also make sure you know exactly when the 0% promotion expires and pay off in full before this date to avoid paying interest.

DestroyingAngel_2

kittykitten wrote: »

OK, this might sound like a really stupid question, but I've never done this before. I've opened a M&S &More CC which has 0% interest on new purchases for first 6 months, so I intend to do the logical thing and put the money in a savings account then pay it all off after 6 months - I usually pay my CCs off in full every month but better I have the money than them, right?

Anyway what's puzzling me is will there be a minimum payment I need to make each month in the first 6 months, as there usually would be with a CC, or do I just literally pay absolutely nothing until just before the interest free period runs out?

How do you intend to "put the money in a savings account"? You say your card is 0% on new purchases, what's the deal on balance/money transfers? Maybe I'm reading your post wrong, but I thought the only way to get money into your account was to do a money transfer?

As long as there's any balance on your cc, you have to make a minimum payment on time each month. And you'll have to pay off all the balance at the end of the 5th month, if you don't want to start accruing interest on the card once the 6th month's statement is issued.

kittykitten

DestroyingAngel wrote: »

How do you intend to "put the money in a savings account"? You say your card is 0% on new purchases, what's the deal on balance/money transfers? Maybe I'm reading your post wrong, but I thought the only way to get money into your account was to do a money transfer?

Sorry!:embarasse In my brain what I said made perfect sense, but I can see now how it made no sense to anyone else! :rolleyes: I always pay my CC balance off in full, so I intend to make min payment (now I know how 0% works, thanks to everyone on here) then rather than pay the rest of the balance off I'll put whatever amount I've spent on my CC that month into a savings account. That way I know I'll have the money available at the end of the interest free period to pay off the full balance, and will have earned a little interest on it from the savings account!

NickX

kittykitten wrote: »

intend to make min payment (now I know how 0% works, thanks to everyone on here) then rather than pay the rest of the balance off I'll put whatever amount I've spent on my CC that month into a savings account. That way I know I'll have the money available at the end of the interest free period to pay off the full balance, and will have earned a little interest on it from the savings account!

Yep it made sense to me - this is known as "slow stoozing" and should earn you a few extra quid over the course of 6 months :beer: