Advice with credit card / loan

liam191

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stephane_2

are you looking to make one single purchase of £3000? if yes, then taking a CC with 0% interest on purchase over a period of 9/12 months is probably best for you if you are planning to pay it back within that time frame. 0% means 0%

thriftymomma

It is 0% plus whatever fee they stick on, which normally attracts the same rate of interest as purchases ( i think) Don't forget to factor this in when doing your sums.

td_007

liam191 wrote: »

Firstly, am I right in thinking it is 0%, do credit card companies not charge you if you dont make full payment every month? It is really 0%? I thought all chargers are involved. I would pay back roughly £350 every month for 8-9 months. So would I not pay any interest? Liam

With a 0% purchase card, you need only to make the minimum payment (usually 3% of the outstanding balance) each month by the payment due date during the offer period. Hence if it is single purchase of £3000, your first payment will be £90 (3% min payment) and so on.If you clear the balance by the end of the offer period you will pay no interest at all. A much better option that taking the loan.

liam191

Yeh a one off purchase...so the halifax 0% for 9 months, does that have "whatever fee they stick on"? The aim is to buy item for £3k and pay off £400-£500 each month. Im confused still....so if I pay off it within 6 months if the interest free period if 9 months I dont pay any fee?

liam191

td_007 wrote: »

With a 0% purchase card, you need only to make the minimum payment (usually 3% of the outstanding balance) each month by the payment due date during the offer period. Hence if it is single purchase of £3000, your first payment will be £90 (3% min payment) and so on.If you clear the balance by the end of the offer period you will pay no interest at all. A much better option that taking the loan.

Okay I think I get it now....sounds much better than getting loan because in effect i'l save £270!

Karl.H_2

Provided you use your card to make purchases to the value of £3k, have a 0% Into offer for Purchases, and you pay the minimum balance each month you will be fee-free. But it depends what you're using the cash for (fees will be made if you withdraw cash and are not included in the introductory offer). Remember to pay as much as you can each month so you clear the debt longer. If you can get a credit card with a limit greater than £3k use the card instead. Credit-card replayments are much more flexible than a loan; you can pay the minumum one month and a greater amount the next.

liam191

Karl.H wrote: »

Provided you use your card to make purchases to the value of £3k, have a 0% Into offer for Purchases, and you pay the minimum balance each month you will be fee-free. But it depends what you're using the cash for (fees with me made if you withdraw cash and are not included in the introductory offer). Remember to pay as much as you can each month so you clear the debt longer. If you can get a credit card with a limit greater than £3k use the card instead. Credit-card replayments are much more flexible than a load; you can pay the minumum one month and a greater amount the next.

That sounds good....im gutted tho as I recently ordered the halifax cash back, hasnt come yet, been acceptd but it'l have to be changed to the 0% one one...sounds good no interest tho! I will definately pay it off within 9 months, around £350 each month.

Karl.H_2

If you have been accepted for cashback cards you'll have no trouble getting a good 0% purchase card with a good limit. Roughly speaking, the amount of debt you have vs. your income is a factor in determining your credit limit.

liam191

Karl.H wrote: »

If you have been accepted for cashback cards you'll have no trouble getting a good 0% purchase card with a good limit. Roughly speaking, the amount of debt you have vs. your income is a factor in determining your credit limit.

okay great, I have no debt so this will be my first one! The halifax one looks good and im with halifax with current account.

td_007

liam191 wrote: »

That sounds good....im gutted tho as I recently ordered the halifax cash back, hasnt come yet, been acceptd but it'l have to be changed to the 0% one one...sounds good no interest tho! I will definately pay it off within 9 months, around £350 each month.

With a cashback card, you will need to clear the balance at the end of first month to avoid any interest. If you plan to pay it over a 9 month period, you need to check what the purchase interest rate is on the card. Is the APR higher or lower than the loan you are looking at?