Zero card - offered 0% on purchases

Make-it-3

We have a Zero card that we keep just for use abroad, but just been offered 0% on new purchases till June 2014.

Is this a no-brainer? The letter doesn't go into much detail - so don't want to get caught out. Can I assume we would then have to avoid using the card for cash withdrawals overseas or incur interest on the whole balance.

Anyone else been offered this and found out more?

marywooyeah

I'd double check as there may be a foreign transaction fee for using it on purchases abroad.

YorkshireBoy

marywooyeah wrote: »

I'd double check as there may be a foreign transaction fee for using it on purchases abroad.

The whole point of this card (when launched) was zero fees, hence it's name.

YorkshireBoy

Make-it-3 wrote: »

Can I assume we would then have to avoid using the card for cash withdrawals overseas or incur interest on the whole balance.

You won't be charged interest* on the "whole balance", only the cash advance element.

However, if you overpay the cash element you'll probably find that there won't be any residual interest charged the following month. See your T&Cs (or at the very least, your summary box) and check the allocation/order of payments section.


* Well, you will...but the interest rate on your purchases will be 0%.

chattychappy

I regularly get BT offers from Zero. Usually 12 months, 3% fee. I generally don't take them up and keep the card for foreign ATM withdrawals. I put foreign purchases on either NW Select of Post Office Mastercard.

Hope I get your offer too! I have some big foreign spend coming up in January.

Agree with YB's answer to your question. Bear in mind that once you have a purchase balance, you will have to wait for your cash withdrawals to appear on a statement before paying them off, else your payment will be applied to your purchase balance first.

So, the "cost" of taking up their offer is that you might have to pay up to a month's interest on your ATM withdrawals (more if you wait until the "due by" date - eg if you wait for a DD to happen). Still good value though.

Make-it-3

Thanks all, we don't have any foreign trips planned at the moment, so think will use it as our main card for purchases and then deal with the cash advance issue if/when it arises.

Chattychappy, bit surprised to get this offer and no idea why as I say we normally only use it when overseas so not their best customers.

planteria

that is probably why. they are trying to tempt you to use the card.