0% on purchases for 16 months?!

jw12345

Hi guys,

Im thinking of getting a 0% on purchases credit card for the first 16 months and am wondering what the hidden extras are.

If I understand correctly, If you spend £500 in the first month and pay it back in £50 installments over say 10 months, the debt is settled because I'm still in the interest free 16 month period. I then cut up the card, never to use it again.

How does the bank make money on this? I'd like to point out I've had credit cards in the past and never missed a payment, so reliability isn't the issue. This would be my first 0% on purchases card.

What are the hidden extras and costs? How do they make their money? Do they just rely on people overspending?!

Thanks Guys,
JW

[Deleted User]

Merchant fees
Customers continuing to use the card after the promo period
Customers breaking the terms

No hidden extras or costs.

Gromitt

I've lost count of the number of people who have posted on here stating they took out card X and forget or paid late within the first few months and got a £12 fee and loss of promotional features. So if you dangle a big enough carrot (16 months will usually do it), then you attract people and a good percentage will end up owing you money.

Even if they don't make money from you, they'll make it from the merchant, as zx81 says.