Help with 0% purchase credit card

CapitalJ

Hi

We're getting married in the summer and I plan to use a long term 0% purchase credit card to pay for some of the items, effectively using it as a short-term loan. I've used 0% purchase cards in this way for many years and never had a problem paying them off before the promotional period ends.

Currently I have 6k on a Natwest credit-card (with a 10k limit), but the 0% promotion ends in November. What I'd like to do is get another 0% card to use for wedding purchases, perhaps the Halifax (17 months) or Tesco (16 months). What is the best strategy for maximising the likelihood of me getting accepted for a new 0% purchase card? Is it to pay off the existing Natwest card now (which I can do) and close the account, wait a few weeks and then apply for one of the above cards? Or am I better just to apply for the card now with the debt still outstanding?

In terms of my financial history, I think i'm in good standing - I have no other debts aside mortgage, I have one other Sainsburys Gold credit card that I pay £5 / month for which gives me free worldwide travel insurance and I pay that off in full every month.

Any advice would be greatly received!

[Deleted User]

What's the limit on the Sainsbury card - and what is your income?

CapitalJ

Thanks for the reply - 10k limit on the Sainsburys card and self-employed but about 45k

CapitalJ

Can anyone help me out?

[Deleted User]

I don't think there's anything wrong with applying now. But when do you intend to make the wedding purchases? You'll only get a 3 month window or so normally in which to make qualifying purchases - so you need to consider the timing.

CapitalJ

Thanks again for the reply zx81 - sorry if I'm being dim, but what do you mean you only get a 3 month window or so? I'm talking about about applying for a 16 or 17 month 0% on purchases card. Honeymoon needs booking soon and it's this I'd like to put on the card, plus the final balances for a lot of things which will need paying around the time of the wedding in August.

StuC75

That although the interest free period will be for 16months, some have a limit for when when the purchases can be made on that deal - say first three months.. afterwhich they are just regular transactions..

CapitalJ wrote: »

Thanks again for the reply zx81 - sorry if I'm being dim, but what do you mean you only get a 3 month window or so? I'm talking about about applying for a 16 or 17 month 0% on purchases card. Honeymoon needs booking soon and it's this I'd like to put on the card, plus the final balances for a lot of things which will need paying around the time of the wedding in August.

CapitalJ

Oh really??! I never even realised this. I'd always just got the top one that's recommended on MSE at any time and assumed the whole period was interest free for anything purchased! Will look into this now - thanks for the heads up!

[Deleted User]

Apologies - you're correct, the 0% interest period appears to be the same as the period for making those purchases on both Halifax and Tesco from what I can see.

Normally, although you get a 0% rate that lasts for 16-17 months, you normally only have a short period in which to make those purchases (ie the first 3 months after account opening) edit - as better explained by Stu above. But that doesn't seem to be the case here.

CapitalJ

Ahh phewpf - I've been doing this for years and never run into a problem (I always set up a direct debit to pay off the minimum amount each month on the same day I get the card). I've always gone with the ones recommended on MSE so I assume it would be made explicit on the recommendation if the period was actually shorter than advertised.

So, to my original point - pay off my existing card, close down the card and then apply for a new one (probably the Tesco one, bearing in mind I've had a Tesco one before which will I always paid off in full which will hopefully work in my favour, and that I mainly shop in Tescos), or just apply for a new one now and not worry about paying the old card off just yet? I just want to maximise my chance of getting accepted since if this doesn't work, I'll probably go the traditional loan route (which I'd rather avoid if I can).

[Deleted User]

Personally, with 6k debt, 20k limts and 45k income, I'd probably apply now.

But if you want to play safer, then clear the 6k now, leave it a month or so and then apply. But if you need to start buying wedding stuff right away, then just go for it.

So. Door A? Or Door B?