short term loans

bzc

Hi just been reading the site with interest about taking a credit card to cover a short term loan. The ones with 0% interest on new purchases look a good idea. But hope you can help here, from some one who has never had a credit card so far, we've managed so far with out, I have no idea as to how they work. On these interest free ones say for 12 months you have to pay the minimum amount of the balance usually 3% is that right but to pay off the balance a higher payment may be needed.Can you change the amount paid if you need to each month.

This may be a daft question but when you pay off the balance within the time what do you do with the card if you choose not to use it. do you have to cancel or can you just not use it. will you be charged if you dont use it anymore.after the interest free period does the card defer t othe normal rate.

Thanks in advance from a noobie

Moggles_2

On these interest free ones, say for 12 months, you have to pay the minimum amount of the balance usually 3%, but to pay off the balance a higher payment may be needed. Can you change the amount paid if you need to each month.

That's right. You can choose to pay any amount you like each month, provided that you make at least the minimum payment required. This will be shown on your monthly statement.

Moggles_2

When you pay off the balance within the time, what do you do with the card if you choose not to use it? Do you have to cancel or can you just not use it.

You don't have to close the account. You can simply not use the card.

Will you be charged if you don't use it any more?

Most lenders do not charge for a dormant card, but I'd check before you apply.

After the interest-free period, does the card defer to the normal rate?

Yes. That said, if you only ever used your card for purchases and always settled the statement balance in full by the payment due date, there would be no interest charges.
Your shopping would be interest-free

bzc

thanks Moggles some good answers there.you say check before I apply where could I do that. at the moment I havent looked into it properly but was looking at the card available from Tesco. is it ok to post links here so you can see it yourself

when you said choose to pay any amount, how do you pay, direct debit or another method

Moggles_2

You say check before I apply. Where could I do that? At the moment, I haven't looked into it properly, but was looking at the card available from Tesco.

Always check the terms and conditions of your credit agreement before you sign. It's important to know what you've signed up to.

Tesco doesn't charge an annual fee on cards that are active/dormant, so you'll be fine with that one