18 Months Interest Free with Capital One

gobbyash

My boss from work just rang me up to say he had received a letter from Capital One offering 18 months interest free.

He has only just taken out a Capital One with a 6 month offer so he rang them to see if they would switch.

At first the guy on the phone said he didn't know anything about the offer but when he quoted the reference on the letter admitted that he did!

Anyway the only way he could benefit from 18 months interest free was to close his new account and open a new one.

I've told hime to bring the letter in to work on Monday and will advise if there are any more relevant details.

Regards

gobbyash

Insert from Martin:First of all nice to see MoneySavers are recognised at work.  Next I've copied my reply from below to the top thread, as i hope it will help.

Capital One 18 month 0% card.

Right thanks to MoneySaver Gail who faxed me through the terms and conditions of the card.  I have now had a brief look.  Remember i have only seen one document, others may vary, that is always possible with these type of specific mailshot only offers.  However the general points to check for should be the same.  Read it in conjunction with the  best balance transfers article for background.

The key point of this offer is as follows

You will get the 0% for 18 months, provided you spend at least £100 on the card before 31 January 2005. (update - it seems not all incarnations of this offer have this clause)

The reason for this comes down to that old chestnut 'repayment schedules':  See the following paras in my balance transfer article:-

"Balance Transfer Warning

There’s a big catch with balance transfers if the special offer interest rate doesn’t apply to purchases (normal spending) as well.  In these cases, when you make repayments, lenders bias them towards paying off the cheap debts first.  

This means (expensive) debts from spending sit on the card speedily accruing interest but you can’t start paying them off until the entire cheap balance transfer debt is repaid.  Therefore, as a strict rule, Never Ever Ever spend on these cards!  Just transfer your balance, put them in a drawer, and use a different card for spending (see best credit card for spending)."

In this case though, what i would suggest is two things

i. Spend ONLY £101 no more (ok £102 if its convenient, but not much more)
ii. Spend it as near to the end of January 2005 as you possibly can (though if you may forget, better just to spend it now)

This will reduce the interest that accrues.   The way i would think of it like this.  If you do the above then you will need to pay roughly £12 interest on the £100 (APR on the doc i read is 11.9%), there's no way round this, however if that's all it cost to get 18 months 0% on a decent balance it's a bargain.

One other thing to check though (its not on the ts&cs but just in case) is that there is no balance transfer fee, there shouldn't be, but do check.

It's important you go through your t&cs yourself.  And if anyone spots any specific issues, please report it back here so all can benefit.

Hope this helps

Martin  

PS.  If this does become available to all, i will include a note in my weekly Money Tips email.  (If you don't already receive it, put your email in the box top left of the page (it's free of course)).

smartsaver

Do we know the reference number??

gobbyash

Yeh, he told me the number at the top of the letter but I forgot. Will let you know on Monday evening, if he remembers to bring it in to work!

Lewis_Gerolemou

I have just got one of these this morning, it looks OK. You get up to £25,000 credit transfer limit if you transfer on application but only up to £10,000 if you transfer after application. Application deadline is 29th October. Reference number in the address panel is 72711 - if that means anything.
Lewis Gerolemou

Hobo_2

Lewis, have you been a customer of Cap one previously, hope to get this myself if that`s their criteria.

Lewis_Gerolemou

Hello Hobo,
I have not been a customer before. I have had a look through the Ts & Cs, there don't appear to be any catches. They also give 0.5% cashback if you use it for purchases but I'm not sure that that is a good idea. Applicants must be over 21 and have an income of at least £10,000 p.a.
Lewis Gerolemou

littlemisscheap

Is this by invite only? er... wherez me invite C1?

MSE_Martin

This is interesting - it is definitely not available to all. Am checking it out

martin

weatherwax_2

Hmmm, I've been keeping a cautious eye on this thread.

This is interesting - it is definitely not available to all. Am checking it out

martin

THAT'S the post I've been waiting for!

Further news eagerly anticipated.

littlemisscheap

Yay, Go Martin!

robin7667

You get up to £25,000 credit transfer limit if you transfer on application

;D ;D ;D ;D

That would be just awsome!!! For 18 months....mmmmm

This is interesting - it is definitely not available to all. Am checking it out

martin

THANKS MARTIN!!