6 months on Cover - Options

BREMBO

Could someone please explain why its not a good idea to pay off a credit card making the minimum payment? is this a negative on my credit score?

Thanks

BREMBO

Can anyone please explain why the minimum payment is a bad idea? I understand if you choose this option over a long period its has a huge impact but if the credit is 0% on purchases for 12 months does the minimum payment still get charged at a % if I do this over the 12 months or repay this within the 12 months?

For example if I was to get a credit card with 0% on purchases for 12 months and have £800 outstanding but I repay this within 10 months using the minimum payment. Will I just repay £800?

Thanks

mikey72

A zero percent credit card is a good idea, I wouldn't risk 6 months though, 12 months is better.

If you don't use it for anything else that attracts interest, then you can pay the mimimum off, and you won't pay any interest on the balance.

You need the lump sum to pay off the balance at the end, the mimimum payment on £800 won't dent it much. Budget accordingly, but don't expect it to be plain sailing with the insurer. You may get a cheque by return for the remaining 6 months, they may try to charge anything up to the entire year, then you could fight for months to get it back, addmittedly, you'll still be paying the card at 0% if it was a 12 month offer, but always make sure you can cover the card balance from elsewhere anyway.

BREMBO

mikey72 wrote: »

A zero percent credit card is a good idea, I wouldn't risk 6 months though, 12 months is better.

If you don't use it for anything else that attracts interest, then you can pay the mimimum off, and you won't pay any interest on the balance.

You need the lump sum to pay off the balance at the end, the mimimum payment on £800 won't dent it much. Budget accordingly, but don't expect it to be plain sailing with the insurer. You may get a cheque by return for the remaining 6 months, they may try to charge anything up to the entire year, then you could fight for months to get it back, addmittedly, you'll still be paying the card at 0% if it was a 12 month offer, but always make sure you can cover the card balance from elsewhere anyway.

Thanks Mike.

Appreciate this. I will be looking at insurers before accepting anything.

BREMBO

At the moment M&S and RBS seem to offer the best 0% interest on purchases. I bank with RBS would I be more likely to be accepted for this or does it not make any real difference?

Thanks

BREMBO

Anybody going to be applying for this shortly, M&S seems the better card

forgotmyname

This maybe better in the CC section.

The readers there will know the ins and outs of each card. I think some know the full terms better than the companies that supply the cards.