Looking to spend £2000 on a 0% on Purchases CC

Yakyb

Let me start by saying im new to this but have read up a bit and think i know how it works im just looking for some confirmation.

as the title says im looking to spend ~ £2000 on a new computer in the next couple of months. Im very much a computer enthusiast and it will be a custom built rig for me. And as Martin Lewis Says in his book Money saving isnt about amassing a large amount of money or skimping on areas you really dont want to skimp on, its about becoming more efficient so you can afford the things that you want.

Anyway

i have been saving for a while (see sig) and can afford to pay in Full Now, however i see this as an ideal oppurtunity to start taking advantage of Introductory CC offers. In this case 0% on purchases.

as i understand it i purchase £2000 pounds worth of stuff on it and setup a direct debit to make minimum payments each month then setup a tart 2 month before the end of the offer to remind me to sort out the remainder and cancel the card

in regards to the remainder i could (depending on offers at the time)
1.) pay off in full using money i would have spent 11 months ago (keeping interest gained on that money)
2.) transfer it to a 0% on Balance transfers CC and setup a minimum repayment DD again(keep gaining interest on money i would have spent)

could someone please advise me on the best course of action I really want to get started here and see this as a good oppurtunity

thanks
Jake

thumshie

Logic seems fine. The initial points:
1. Does your 'custom rig supplier' accept Credit card payments,any surcharge?
2. Can you get a Credit card?(whats your credit rating??any problems)
3. Will the credit limit cover the purchase..(As your sig shows saving 440 I'll assume your not unemployed etc but may be a factor) again you won't know until you apply-some credit card companies will give low limits if it's your first credit card or you're very young..

YorkshireBoy

The longest 0% on purchases deals at the moment are M&S and Sainsbury's - at 10 months I believe.

If you haven't cleared the balance at the end of the intro period, be aware that you almost certainly *will* pay a BT fee to transfer any remaining debt elsewhere.

Yakyb

thanks for the quick Replies guys

just some more info that may be required im 23yrs old earning roughly £24,000 a year with no morgage (although i may be getting one in the next 10 months)

@Thumshie
1.) no there is no extra charge on CC purchases
2.) my credit rating was very good last time i checked the only debts i have ever had are Student loans
3.) I have yet to apply for a CC other than what was given to me in the first year of uni (i only use it for online purchases and it is always paid off in full via DD that month) therefore im not entirely sure what limit i will be offered but im guessing roughly £4000 which is more than enough

@yorkshireBoy
ahh thought there would be a catch so would this fee be payable to this CC or the one i transfer to.

if it's payable to this card would i be better off paying the minimum up until the final month at which point i pay off in full.

also i suppose i could use it for other spending provided i was careful to put money aside to pay off the final value in the last month

Thanks again guys

thumshie

Yakyb wrote: »

ahh thought there would be a catch so would this fee be payable to this CC or the one i transfer to.

IT would be payable to the card being transfered to.
There are three main type of 0% BT cards currently offered:
1.No fee
2.Capped fee
3.Unlimited fee
No's 1 and 2 are already getting rare. Option 3 will charge you at the time of the transfer a % of whats transfered, normally 2%, 2.5% or 3% again the latter is now the most common....You'll have to work out wether the money will earn more in your savings account over the period at 0% compared to the fee. If not just pay the balance off before the 0% ends..

YorkshireBoy

YorkshireBoy wrote: »

The longest 0% on purchases deals at the moment are M&S and Sainsbury's - at 10 months I believe.

My apologies. I'd forgotten the Halifax/BoS 12 month offering, available through https://www.moneysupermarket.com (as notified in Martin's weekly e-mail).

JoeK_3

Must be a heck of a computer rig for that much. Nowadays you can buy an all singing and dancing laptop for around £1,000 and that would save you a lot of trouble and money.

JoeK