Credit Card Novice, Please Help!

Taff

Have been looking at get a Nationwide credit card 0% intrest free for nine months. Does this mean that I could spend up to my credit limit and not pay any intrest until the 9 months is up, providing I pay the min payments each month?

When this 9 mths is up, could I then do a balance transfer to another card with 0% on balance transfers for another duration and just pay min payments, and keep doing this until the debt is payed off?

Also A seperate issue:-
I have a sum of money invested in a min return (stocks & shares) savings scheme for 5 years (min return 20% max 60%). I need to take this out now a year before the duration is up and will lose the potential return of 60%. Is there a way of borrowing approx 3k, intrest free on a credit card until this money has been in for its full duration (due May 2007). When this money is withdrawn I can the pay off the credit card and benifit from the intrest?

Any advice offered will be greatly appreciated..

kragen_ironfist

as far as the 0% on the credit card is concerned

if they are offering 0% on purchases for 9 months then you will pay no interest on anything you buy on the card in that 9 months - PROVIDING you make at least the minimum payment each month. when the 9 months ends your APR will shoot up to something between 15-20% and you will want to move the balance.

if the 0% offer on the card is only for balance transfers then watch out
any money you transfer from another credit or store card will get the 0% apr BUT and this is a VERY BIG BUT, unless you are also being offered 0% on purchases this is what will happen

example ...
balance transfer of £2000 @ 0% APR for nine months (minimum payment would be roughly £75 depending on card) but purchases charged @ 19% APR

so you transfer your balance when you take out the card but then you spend another £1000 on other items but on the same card taking the total credit used to £3000

When the first statement comes along you will pay the mininum payment (lets say £75) but you will be charged interest on the £1000 spent after you balance transfer. and you will be charged interest on the full £1000 of purchases (PLUS the interest incurred from previous months) until every last penny of the balance transfer is paid off.

in short - if you intend to use the card for purchases make sure it has 0% for purchases
if you intend to use the card for a balance transfer then DO NOT EVER SPEND ANY MONEY ON IT UNTIL YOU HAVE COMPLETELY CLEARED THE BALANCE TRANSFER

in answer to your second question - yes - providing you have a good credit history and can take out a new card every 6,9,12 months etc then there is nothing stopping you, also once you have a couple of cards under your belt in this way you may find that the card companies you already have accounts with will offer you special 0% or low interest balance transfer deals.

as for you 3rd question regarding stocks - i assume you want to borrow the money interest free so you do not have to take it out of your stock option
if this is correct then you are bound only by the credit limit your card company give you. so basically find a card that will give you 0% on purchases for a year, hope they give you a £3k or more limit and then use that card for day to day purchaes (or a 3k lump some if that is what you need), you may find picking the right card may even earn you cash back as well. all you have to do is make the minimum payments each month and then when your stock matures pay it off - you should have not paid any interest and may have even made a bit more cash.

for more info check the credit cards page for "best cashback credit card" "best balnce transfer card" or best "0% for purchases card"

read carefully, take your time and if your still not sure ask again - hope this helps

Taff

Thats a great help, Thanks.

Reading the small print on these 0% on purchse cards It says:

"Maximum 50 days for purchases if you pay the balance in full and on time. There is no interest free period on cash advances, cheques or balance transfers"

What exactly does the max 50 days for purchases mean if the credit card is for example, 9 months 0% on purchases?

kragen_ironfist

that sounds like 0% interest for nine months on purchases made within the first 50 days of having the card i.e buy stuff first 50 days 0% interest after 50 days you get charged interest - I could be wrong on this - maybe somone else will correct me

SalsaDanca

Taff wrote:

Reading the small print on these 0% on purchse cards It says:

"Maximum 50 days for purchases if you pay the balance in full and on time. There is no interest free period on cash advances, cheques or balance transfers"

What exactly does the max 50 days for purchases mean if the credit card is for example, 9 months 0% on purchases?

This bit of the terms and conditions isn't about the 0% promotion, it's about the standard terms that apply after the promotion has finished.

It means that when you make a purchase, they won't start charging interest immediately. Your purchase will appear on your next statement, and if you pay the bill in full and on time, you don't have to pay any interest on that purchase. If you make a purchase on the day after your statement is sent to you, it will be 30 days until you receive the next statement, then you will have 20 days to pay it.

If you don't pay the bill in full they will charge interest from the day you made the purchase, and the interest will appear on the next statement.

For any other transactions (balance transfers, withdrawals from a cash machine, and any credit card cheques they have sent you) there is no 50 day grace period, so they will charge you interest for these transactions even if you pay the bill in full and on time. The interest rate for cash withdrawals and credit card cheques is usually very high, so don't do it.

The Nationwide Classic credit card gives you 9 months interest free on purchases, so you won't have to pay any interest during the first nine months. Once the nine months is up, they will start charging interest on the outstanding balance. I suggest that you phone them and ask when the 0% promotion expires, otherwise they might catch you out by ending the promotion a few days before your ninth statement is due for payment.

kragen_ironfist

thankyou for clearing that one up salsa

Taff

Top Info again:beer:

Two other questions:

1: Can you pay off as much as you want when you want? and how do I make a payment?

2: Can I use a credit card to put the cedit limit in a bank?

Sorry for soundng stupid here!!

---lee---

1. You must pay at least the minimum payment each month. This will depend on the card but is usually around 2.5-3% of the outstanding balance.

2. Yes. The exact details of how you go about it depend on the card. I suggest you read the all the articles relating to credit cards linked above in the blue box.

EDIT: Just to add, many card companies will charge for balance transfers and other methods of moving money around (cheques etc) so be sure to read the articles I mentioned. You will then get a good idea for which type of card will suit your needs best.

humfer

Taff wrote:

Have been looking at get a Nationwide credit card 0% intrest free for nine months. Does this mean that I could spend up to my credit limit and not pay any intrest until the 9 months is up, providing I pay the min payments each month?

When this 9 mths is up, could I then do a balance transfer to another card with 0% on balance transfers for another duration and just pay min payments, and keep doing this until the debt is payed off?

QUOTE]

Maybe also look at the Sainsburys card which is 0% for 12 long months. You just pay either 2 or 3% per month, and just make sure you either pay off the remaining balance or balance transfer before the initial rate changes.

Taff

Any comments on the Sainsburys 12mths intrest free credit card for overseas use?