When does the 0% period on a new credit card start?

funkyspaceman

Hi,

I am going to buy a used car, and am going to finance it with a credit card.

The card I am thinking of getting is the Tesco 18 month Clubcard Credit Card. I am confident I will be able to meet more than the monthly minimum payments and have it cleared within the 18 month 0% period.

I do have a question though: Assuming i'm successful in applying for the card - when does the 18 month 0% period start? Is it when the card arrives in the post, or will it be when I first spend on it (i.e. pay for the car)?

The reason I ask is because I haven't yet seen a car that I am interested in buying, but I am hoping to find one soon.
So - if I apply for the card and am successful and it arrives in the post, if the 0% period starts straight away and it takes me longer to find a car than I thought - say a month or two, then I have effectivly wasted a month or two of the 18 months 0% period.

So do I apply for the card before I find a car in the hope that the 0% period won't start until I actually buy a car, or do I find a car, and then apply for the card and hope that the car doesn't sell before I can buy it?

Reading that back it sounds confusing, so I hope somebody understands!

Thanks for any replies

Savedotmoney

funkyspaceman wrote: »

Hi,
I do have a question though: Assuming i'm successful in applying for the card - when does the 18 month 0% period start? Is it when the card arrives in the post, or will it be when I first spend on it (i.e. pay for the car)?

The reason I ask is because I haven't yet seen a car that I am interested in buying, but I am hoping to find one soon.
So - if I apply for the card and am successful and it arrives in the post, if the 0% period starts straight away and it takes me longer to find a car than I thought - say a month or two, then I have effectivly wasted a month or two of the 18 months 0% period.

So do I apply for the card before I find a car in the hope that the 0% period won't start until I actually buy a car, or do I find a car, and then apply for the card and hope that the car doesn't sell before I can buy it?
Thanks for any replies

The 0% period will start when you receive the card through the post. That's when you technically have the card at your disposal to begin spending. You're probably best to find a car then apply for the card and hope the car isn't sold by time you get the card through the post! Put a small deposit down on it.

bengal-stripe

Make sure you find a used car dealer who will accept Credit Card (and without a surcharge).

Not many dealers do!

[Deleted User]

It will generally start from when the account is created - so around a week or so before you get the card.

silvasava

If you are worried about having the card before you find the car you like you can always save the monthly repayments and pay all of them as soon as you spend on the card.

Atidi

funkyspaceman wrote: »

Hi,

I am going to buy a used car, and am going to finance it with a credit card.

The card I am thinking of getting is the Tesco 18 month Clubcard Credit Card. I am confident I will be able to meet more than the monthly minimum payments and have it cleared within the 18 month 0% period.

I do have a question though: Assuming i'm successful in applying for the card - when does the 18 month 0% period start? Is it when the card arrives in the post, or will it be when I first spend on it (i.e. pay for the car)?

The reason I ask is because I haven't yet seen a car that I am interested in buying, but I am hoping to find one soon.
So - if I apply for the card and am successful and it arrives in the post, if the 0% period starts straight away and it takes me longer to find a car than I thought - say a month or two, then I have effectivly wasted a month or two of the 18 months 0% period.

So do I apply for the card before I find a car in the hope that the 0% period won't start until I actually buy a car, or do I find a car, and then apply for the card and hope that the car doesn't sell before I can buy it?

Reading that back it sounds confusing, so I hope somebody understands!

Thanks for any replies

You need to check the details in the terms, or in this case the summary document will do

http://www.tescobank.com/assets/sections/credit-cards/pdf/tesco-bank-cc-pur-summary-box.pdf

funkyspaceman

Thanks for your replies, some great answers/advice there!

I think i'll look for a car and as suggested, put a small deposit down if I find one and then apply for the card.

Thanks again

Fruit_and_Nut_Case

funkyspaceman wrote: »

I am confident I will be able to meet more than the monthly minimum payments and have it cleared within the 18 month 0% period.

Why would you want to do that? Consider paying the minimum (or maybe £1 over the minimum) each month and sticking any spare cash in a savings account. Use it to pay off the balance in month 17 and buy yourself something nice with the interest you've earned.

Ebe_Scrooge

A top suggestion there by Fruit & Nut.

But as was mentioned in an earlier post, check very carefully whether the car dealer will accept a card. Many won't, or if they do, they'll pass on to you the surcharge that they get charged by the card issuer - typically 2 - 3% or so. If you're spending a few thousand on a car, this will be a significant amount.

ic

When buying a car last year from a main dealer, they allowed a fee free deposit of up to £1000 on credit card, then a further part payment of up to £1000 - beyond that they wouldn't accept credit card, certainly without passing on the fee so worth asking. Don't tell them why you want it on card, after all you're giving away some bargaining power on the price. Also remember you could push them to give a better value on your trade in, a discount on the car or perhaps throw in extras, instead of pushing to remove the fee. It might just be something they "have to" charge as per company rules, so work around it.

forgotmyname

How will you pay for the car if the cards limit falls way short of the balance?

How many weeks will the dealer wait whilst your card application is processed and you get the card in your hand?