Newbie - be gentle

Cashboss

Hi there,

I'm looking to purchase solar panels for my house and have been pointed in the direction of getting a couple of credit cards with long 0% interest rates and pay the minimum each month and then once the 0% period is up, transfer this onto another card and do this again. Now, I have got some literature through from RBS and it clearly states in there T's & C's that I will not be charged any interest at all so long as I pay the balance in full. Is the balance the minimum amount? or is it something else.

If you could give me a working example that would be very helpful.

CB

shonzyd

Doesnt answer your question but...

solar panels? waste of money - unless your willing to wait about 15-20 years to break even - personally i wouldn't bother, unless its something you feel you really need. Certainly not worth getting into credit card debt over, and there's no guarantee that you will continue to be approved for 0% cards.

A word of advice - DONT DO IT!!

YorkshireBoy

If you don't pay your statement in full each month you'll be charged interest.

Fortunately, during the introductory period the interest rate is 0%.

So make your purchase, make (at least) the minimum payment shown on your statement each month, and either settle in full before the 0% end date or BT any residual balance to another card.

RuthnJasper

I think the term "the balance" means a full payment which covers everything spent on the card.

For example, if you use the card to buy £200-worth of stuff, on receipt of your credit card statement you repay the full £200 from your bank account to the credit card provider before the due date then you won't be charged any interest.

If you only repay £125 of the £200 then, on the next month's credit card statement it will show £75 as the "outstanding balance", with interest added on the £75 still outstanding from the due date on the previous statement...

Hope this helps!

gb12345

Cashboss wrote: »

Hi there,

I'm looking to purchase solar panels for my house and have been pointed in the direction of getting a couple of credit cards with long 0% interest rates and pay the minimum each month and then once the 0% period is up, transfer this onto another card and do this again. Now, I have got some literature through from RBS and it clearly states in there T's & C's that I will not be charged any interest at all so long as I pay the balance in full. Is the balance the minimum amount? or is it something else.

If you could give me a working example that would be very helpful.

CB

Assuming you were initially able to get 0% cards for purchases (not balance transfers) then you would need to pay the minimum off every month and then the total balance would need to be cleared when the 0% period ends.

You will be taking a risk though, as what will happen if you don't get approved for a fresh 0% card when the existing one expires - would you have the money to pay off the balance? If not you'll then be stuck paying interest on the cards.

Also, assuming you were able to get a further card, there is usually a transfer fee for balance transfers to 0% cards, which can be a few % of the amount.

Cashboss

Cheers you guys - I'll have the loan paid off in 2-3 years, so I only need to find 3 more offers. If need be, I can pay the full amount off, but this seems to be quite a good way of doing it and paying the card off purely of what the panels make.
As for if it is worth doing, the cost of solar panel installation, the quality of yield and the increase of the cost of electricity makes this a real no brainer.

So thanks for your advice onwards and upwards as they say.

CB

Katzen

Just to be clear re: paying the balance in full. If you borrow £200 on the card, pay off £199.50 by the payment date, your next statement will show 50p outstanding balance plus interest on the whole £200. I know this seems a bit out of order but that is what the term 'no interest charged if paid off in full' means. Hope that helps

roonaldo

Just make sure when the 0% finishes your balance is nil. If there is any balance just make sure you transfer it to another 0% in good time before it ends.

Hominu

Cashboss wrote: »

Cheers you guys - I'll have the loan paid off in 2-3 years, so I only need to find 3 more offers. If need be, I can pay the full amount off, but this seems to be quite a good way of doing it and paying the card off purely of what the panels make.

You think your solar panels will generate sufficient income via feed in tariffs to pay off the panels in 2 - 3 years?