Simply CC Charges Question

runningboy

I have just applied for an Amazon Master Card, on the 0% for 6 months on Purchases and Balance Transfers. They have sent me through the contract with all the charges (which I thought I understood) but I am now confused.

With 0% on purchases and BT, what payments will I have to make? I will have to make the minimum payment of 2% but I won’t get charged interest for the first 6 months. Will there be any other charges?

We are currently doing up the house and using available money to pay work men. I plan to transfer £2,000 from my egg card and then I plan to buy a kitchen on the Amazon card. Going to use the 6 month period to pay of both debts (or make a big dent into it).

Bokken_2

Welcome to MSE

It sounds like you are going to do a BT and purchase on the same card?
The problem you have here is the allocation of interest to the outstanding amounts as they will incur interest at two different rates.Although it is 0% for six months if both balances are not cleared before the end of the 0% period you will incur interest and this will be allocated to the lowest APR balance first leaving the higher APR balance on your account building up more interest.
Balance Transfers between cards can attract a charge normally 2% or maximum £50.Make sure the fee is a CAPPED fee at a max of £50 if there is a fee on your BT otherwise you will pay 2% of the amount moved.Best double check.
As long as you move the remaining balance to another 0% card at the end of the six month period you should be charged no interest.
The monthy payments are normally 2%,2.25%,in some cases 3% just check your Terms and Conditions @ 2% for every £1000 your minimum payment would be £20. £2000 would be £40 etc..

King_Of_Fools

The point of the Amazon card is that there is no balance transfer fee and that both balance transfers and purchases are 0% for 6 months. Therefore, as long as you clear the full amount by 6 months you will not have to pay any interest or fees!