Help Needed

FocusRS

Hi,

I could do with some help on 0% credit cards,

I've got my Cashback Amex so i know how credit cards work and the payment cycle etc.

But i'm having a real hard time understanding how 0% interest on purchases cards work

Reason being i am due to pay a bill that equates to nearly £4000 at the end of august, but i can't get my hands on anywhere near that money until October/November.

So my understanding is a 0% interest CC would mean i would be able to pay the minimum repayment (or slightly more) and then pay it off completely in November.

Am i along the right lines here or have i missed something important,

i feel getting that size of a bill has kinda shocked me and im not taking in information as well as i should do.

One more thing would any card object to such a large purchase? like the 4k in a single transaction?

I also know the company who requires payment accept mastercard and visa cards, however not amex (fun) hence being in this situation

Thanks anyways for reading,

cdavies1960

It's simple. You buy your stuff. Then you setup a fixed monthly amount with the credit card company and you do not pay any interested for the minimum time.

You can pay it off and then buy more stuff on 0% as long as you still have time left on your offer (i.e some credit cards are 0% for 3 months, others are upto 15 months).

Its effectively a loan... but without the interest... Just remember Cash withdrawals are most likely excluded from the 0% and will also most likely incur an additional 3%.

plumber2009

Whenever you spend on the card you will pay 0% interest on the balance until your 0% term has expired.

So if you had an 18 month 0% offer this would mean that you wont pay any interest for 18 months no matter how many times you use the card.

You will be required to pay at least the minimum payment each month shown on your statement.

Don't miss a payment or you will lose your 0% interest free term and will be subject to interest payments at your standard rate.

cos_2

Agree with above posters.

Also, if your CC provider has given you a limit over the £4000 that you need then the transaction should be allowed. It's possible they might initially block it, then call you to verify it.