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0% Credit Cards - help!

Hi Money Savers,

Can someone offer me some advice?

We're looking to spend about £3k to go towards a car. I thought that if we put it on an interest free credit card we'd be able to pay it back in a year at 0%.

However, I'm a little confused after looking at the T&Cs on some of them.

Here's what the Tesco Credit Card says:

Interest Free Period
  • Maximum 51 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time.
  • There is no interest free period on cash advances or money transfers.
  • Interest free period on balance transfers only applies during the introductory period.
It's the Maximum 51 days I'm confused about. After that period will I start getting charged interest on the £3k I spent?

Thanks,

Richard

Comments

  • stephane_2
    stephane_2 Posts: 3,076 Forumite
    If your interest free offer on purchases is for 12 or 15 months then you will not be paying interest during that period then after the promotional rate ends it will revert to the apr quoted to you when you got the card. Be aware that interest free is NOT valid for cash withdrawal so if you want to pay for a car with the card you'll need to make sure that the dealer will take credit card payment. Also remember that from the moment you use the card you have to make at least your monthly minimum payment, you don't start repaying after 12 months.
  • Thanks for that.

    Do you know what this means:

    Maximum 51 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time.
  • Tixy
    Tixy Posts: 31,455 Forumite
    The 51 days doesn't kick in until after your promotional 0% period. (Well strictly its just that after 51 days you will be charged interest at your promo rate of 0%). Any balance left after the 0% period will be charged at your standard APR.

    As stephane says some dealers won't accept credit card payment or if they do will want to charge you a 2%-2.5% fee on top.

    If this is the case might be worth trying to find out if you would get a discount for paying in cash. You may find overall you get a better deal from using a super transfer card. This will allow you to pay money from your new card into the overdraft for a fee of around 3-4%. Then still has a 0% interest free period. Then if they would give you a discount of 2% or more for paying cash rather than charging 2% for a card payment it might actually work out cheaper overall.
    http://www.stoozing.com/sbt.php

    Either way you will need to make minimum payments during the interest free period.
    A smile enriches those who receive without making poorer those who give
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