Basic Credit Card Question

lion-o

I have just bought a house and after all the stamp duty etc. we hardly have any money left for furniture.

I was just wondering if I got a credit card with 0% on purchases for 12 months etc. Could I make my purchases, pay them off within 12 months and it wouldnt cost me anything extra? All I would pay is the original cost of the goods?

Also, if I bought the goods in month 1 and paid the balance off in month 10. Would having an outstanding balance for that amount of time affect my credit rating at all?

grumbler

lion-o wrote: »

I was just wondering if I got a credit card with 0% on purchases for 12 months etc. Could I make my purchases, pay them off within 12 months and it wouldnt cost me anything extra? All I would pay is the original cost of the goods?

Yes provided that you don't fail to make minimum monthly payments in time. Set a DD for this.

Also, if I bought the goods in month 1 and paid the balance off in month 10. Would having an outstanding balance for that amount of time affect my credit rating at all?

I don't think so, but reportedly making just minimum payments can indeed affect it negatively. It's advised to pay just a fraction more.

CLAPTON

in principle, getting a 0% purchase card will allow you to buy things: if paid off before the promotional period ends then you pay no interest.

your credit rating is affected by most things you do with credit but using a credit cards sensible usually enhances your credit rating: probably best to pay a little more than the minimum each month