credit cards as 0% loans

choppa7

Hi can someone in the know give me a little bit of advice.

I am looking to buy a car but am really bad at saving but not so bad at repayments - dont ask I know I'm wierd!!1

My understanding of this is:
I apply for a credit card with a limit of £1k or more with 0% interest for first 6 months
I transfer £700 (cost of car) into my current bank account
I pay for car out fo current account with the £700

I then pay back £70 per month for 1st 5 months
After 5 months I swap to another card offering 0% on balance transfers for 6months to finish paying off the balance at £70 per month.

This all meaning that I have spent £700 and payed back 10 installments of £70. Ocne balance is paid get rid of card and cancel agreement.

Would this work?
If not why not?
are there any better ways of doing this?

Please Help me!!!!!!!!!

asandwhen

Yes it would work - although a couple of things you would need to think about - firstly you would probably have to pay a balance transfer fee on £700 you would be looking at around £14 - secondly you would have to find a 0% card that had super balance transfer capability (mint,egg,mbna)

choppa7

asandwhen wrote:

secondly you would have to find a 0% card that had super balance transfer capability (mint,egg,mbna)

would that be to transfer the £700 into my bank account or to transfer the balance onto for the 2nd 6 months - or both?

£14 for the balance transfer fee is ok cheaper than loan interest!!

Thanks for the advice really appreciate it :T

asandwhen

The super balance transfer (SBT) card would be to get the money from the card to your current account - you would only need a normal one for the 2nd balance transfer - although you may have to pay another fee but if you have been paying £70 it will be minimal.

choppa7

Smashing, are there any pitfalls to watch out for or should it be firly smooth sailing as long as I make my payments on time each month?

grumbler

See Super BTs link in the blue box above and http://www.stoozing.com/index.htm ...

skywarp

Alternatively you could apply for a card with 0% for purchases (such as MINT who are currently offering 0% on purchases until Sept 2006). To avoid any late payments, just set up a direct debit paying the minimum amount each month.

Robert_Sterling_3

P.S. Don't forget the road tax and the insurance for the car and has it got an MOT.