0% 18 month

sophiegreenwood

I'm looking to make a one off purchase of £3000.
I've been looking at the Tesco 0% for 18 month card.

I was hoping to make the one off payment, cut up the card and pay the 3k off in 17 whilst its 0% months with monthly direct debits of about £180 - which I can happily afford.

Scrolling through the cards terms, it says -

Repayment details -
Interest free period - 51 days

The card is 0% for 18 months though so what does this mean?

Can anyone shed light on this?

[Deleted User]

it means you pay no interest for 18 months,but after that deal any further use will attract interest after 51 days(max)

YorkshireBoy

sophiegreenwood wrote: »

Scrolling through the cards terms, it says -

Repayment details -
Interest free period - 51 days

The card is 0% for 18 months though so what does this mean?

Can anyone shed light on this?

Why start a new thread, when you could have simply bumped your other one?


But to your question, your purchases are only interest free for up to 51 days if you settle your bill in full each month. If you don't settle your bill in full you're charged interest from the date of the transaction(s).


Fortunately, during the first 18 months the interest rate is 0%...not 18.9%.


Clear?

sophiegreenwood

Didn't know bumping was possible - sorry.
Thanks for your help.

So ultimately, because I'm not paying off the 3k within 51 days, I will be charged interest BUT the interest is 0% so effectively I'm not being charged any.

After the 18 months, I will be charged interest after 51 days but I will have cleared balance by then so it's ok?

Sorry, I know I'm being really daft. Never had a cc and want to be absolutely sure of what I'm doing so as not to get in a pickle!! Hence my laymans terms. I know it's probably frustrating to those in the know though, so I apol!

YorkshireBoy

sophiegreenwood wrote: »

So ultimately, because I'm not paying off the 3k within 51 days, I will be charged interest BUT the interest is 0% so effectively I'm not being charged any.

Exactly.

After the 18 months, I will be charged interest after 51 days but I will have cleared balance by then so it's ok?

You'll be charged interest at your standard rate from the day your 0% intro period ends, so best to ensure you have a zero balance on this date...but you say you will so it won't affect you.

zerog

If you are disciplined with your money then you should make the minimum payment each month (about £30) instead of paying £180, and put the rest in a savings account.

Then pay the remaining £2500 off in 18 months' time (or learn to stooze so it can stay in your savings account indefinitely).

scootw1

Personally i wouldnt cut up the card. Keep using it afterwards and accumulate the points to use in tesco or exchange for deals. But pay it off in full every month if you do this.

Mulder00

scootw1 wrote: »

Personally i wouldnt cut up the card. Keep using it afterwards and accumulate the points to use in tesco or exchange for deals. But pay it off in full every month if you do this.

That's a slippery slope into massive amounts of debt.

scootw1

Mulder00 wrote: »

That's a slippery slope into massive amounts of debt.

Rubbish. If you discipline yourself to pay it off very month IN FULL as advised by Martin and only spend what you would normally on day to day spending you can reap rewards. If you cut up the card the amount of available credit is still there so would be on your credit file.

bigadaj

zerog wrote: »

If you are disciplined with your money then you should make the minimum payment each month (about £30) instead of paying £180, and put the rest in a savings account.

Then pay the remaining £2500 off in 18 months' time (or learn to stooze so it can stay in your savings account indefinitely).

I'm not sure but wouldn't it be worthwhile paying a little more than minimum payment to ensure there are no markers on the credit file that might indicate credit stress, even though it's a 0% deal?

ricky_v

bigadaj wrote: »

I'm not sure but wouldn't it be worthwhile paying a little more than minimum payment to ensure there are no markers on the credit file that might indicate credit stress, even though it's a 0% deal?

I personally always pay the min payment +£1 on 0% cards for that reason, however I don't think I've ever seen this theory confirmed.

No harm in paying £1 above min payment anyway.