Please explain 0% on purchases to me

Batgirl_x

Firstly I'm new and confused.

This is probably something I should be able to work out for myself but I can't get my head around it!

Our credit card was used initially for a balance transfer. We have just made our first purchase on it (a big purchase). The card has 0% interest for 3 months.
The card is 2 months old. Does this mean by purchasing now only 1 month will be interest free or all purcheses made in the first 3 months will be interest free for the remainder of that debt?
Should I look to transfer the balance again? Quickly!

Thanks in advance for any feedback

YorkshireBoy

Rule 1: Don't spend and BT on the same card (with very few exceptions).

Which card is it?

Batgirl_x

Hello
It's my fiances Virgin credit card. He bought my engagement ring on it and I'm worried it will end up costing more than we think!!

YorkshireBoy

After 3 months from account opening the purchase will be locked in at 16.6% APR until the entire balance is cleared on the card.

Two options:

1. Repay the cost of the purchase before the 3 months is up (the card has a favourable order of payments during the intro period), or

2. BT the debt elsewhere.

Batgirl_x

Will BT. Thanks for your help.
Not sure if you have any ideas but the virgin balance transfer is good and we want to keep it. Should I transfer the outstanding to a new card with a great purchase deal and then BT it straight back? The new card we can then use to make the big wedding purchases then TART. I think it's cheeper than a loan?!

Again thankyou

ICan'tStandIt

You're right that the 0% only lasts from the three months the account is opened, rather than your first purchase.

Your even losing some time while the card is in the post to you !

If you can't pay it off in full before the three months is up, I would try and transfer the balance onto another 0% card that has longer to run (or a better rate than the standard one on the card it is on already).

As Yorkshire Boy said, be aware how payments are allocated ie. 0% / cheapest interest rate paid off first.

Moggles_2

Batgirl_x wrote: »

Not sure if you have any ideas but the Virgin balance transfer is good and we want to keep it. Should I transfer the outstanding to a new card with a great purchase deal and then BT it straight back? The new card we can then use to make the big wedding purchases then TART. I think it's cheaper than a loan?

Bear in mind that Virgin's 0% rate is restricted to BTs made in the first 60 days from account opening. Also, he would have to pay two BT fees to shift the same money.

td_007

Batgirl_x wrote: »

Not sure if you have any ideas but the virgin balance transfer is good and we want to keep it. Should I transfer the outstanding to a new card with a great purchase deal and then BT it straight back? Again thankyou

With Virgin, you need to BT in the first 60 days (I think) to take advantage of the 0% BT rate - so you will struggle to get the money out and back in within the next month.

td_007

ok...cross posts

Batgirl_x

Of course. Thanks guys. We will prob pay the card purchase off straight away and learn from it!!

Moggles_2

Batgirl_x wrote: »

Of course. Thanks guys. We will prob pay the card purchase off straight away and learn from it!

Definitely your best bet.

Very best
M