1-2 Month Short Term Loan using 0% Card

RehanSaeed

I need to borrow around £1000 to £2000 for a maximum of two months. I have never had a credit card and have a basic idea of how they work.

I am thinking of going with the halifax 0% deal. Am I right in saying that once I have used the card, I will only have to pay the minimum payment of 1% of the amount borrowed each month and when I finally have paid off the card in a couple of months I will have borrowed the money interest free ? (Sorry this may sound dumb but it sounds too good to be true).

Are there any other hidden costs, do I have to make a purchase to get 0% (It says 0% on purchases) or can I just withdraw some money from the bank.

Finally can someone explain balance transfers. Their website says I can save money by transferring money into that account but I dont understand how.

CannyJock

Answered a few minutes ago http://forums.moneysavingexpert.com/showthread.html?t=1899419

It has the links to more details and explains everything else you need.

Halifax cards won't allow you to transfer money to your bank account. Some alternatives discussed in the other post.

EDIT: If you've never had a credit card you may not be accepted for the cards discussed.

ICan'tStandIt

RehanSaeed wrote: »

I need to borrow around £1000 to £2000 for a maximum of two months. I have never had a credit card and have a basic idea of how they work.

I am thinking of going with the halifax 0% deal. Am I right in saying that once I have used the card, I will only have to pay the minimum payment of 1% of the amount borrowed each month and when I finally have paid off the card in a couple of months I will have borrowed the money interest free ? (Sorry this may sound dumb but it sounds too good to be true).

Are there any other hidden costs, do I have to make a purchase to get 0% (It says 0% on purchases) or can I just withdraw some money from the bank.

Finally can someone explain balance transfers. Their website says I can save money by transferring money into that account but I dont understand how.

Firstly, don't worry about the fact that you're asking what some would say are questions that you should know the answer too. You've asked anyway, which is good. One of the reasons why so many are in way over their heads with credit, is purely down to not really knowing how it all works. Banks love customers like this and will never miss the chance to screw you over.

Essentially you are correct in that if you borrow £2,000 on the card at a 0% purchase rate, then you will pay no interest as long as you clear the balance before the promotional rate ends. In the meantime, you just need to make the minimum payment, but your £2,000 needs to be for a purchase ie. the person you gave the money to was able to process a credit card transaction. You won't be able to take the money out in cash and get the 0%.

Hope this helps.

Moggles_2

If this would be your first credit card, you may have a limited credit history. What other credit facilities are held in your name?

From the lender's perspective you may be something of an unknown quantity. They are likely to see your lack of a history as too great a risk. You probably need to be more concerned about actually getting a credit card, rather than looking for the best card to meet your present circumstances.

The bank that holds your main current account may be the best place to start. Once you've operated this and at least one other credit card for a bit, you'll find it easier to get the cards and credit limits you want.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve