Barclays Initial - Benefits of 0% on purchases

alcapone93

Good morning

What does exactly 0% on purchases for first three months allow me to do ? My basic understanding is that I don't have to pay my balance for first three months. However would that not count as missed payments ?

Thanks
Al

eddddy

You'll need to pay just the 'minimum payment' each month. (Your statement will tell you how much that is.)

And you will pay 0% interest on remainder of the balance.

If you don't pay the 'minimum payment' - then you will have 'missed payments', and Barclaycard will cancel your 0% deal.


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Edit to add:

According to B'card website, the minimum payment is 2.5% of your balance (with a min of £5)

So if you spend £300, you have to pay a minimum payment of £7.50 at the end of the month, but you are borrowing the the remaining £292.50 interest free.

alcapone93

eddddy wrote: »

You'll need to pay just the 'minimum payment' each month. (Your statement will tell you how much that is.)

And you will pay 0% interest on remainder of the balance.

If you don't pay the 'minimum payment' - then you will have 'missed payments', and Barclaycard will cancel your 0% deal.

Thanks for that. Would my credit rating benefit more from making full payments instead of minimum ones ?

PeacefulWaters

alcapone93 wrote: »

Thanks for that. Would my credit rating benefit more from making full payments instead of minimum ones ?

Always pay £1 over and above minimum.

CLAPTON

If your aim is to improve your credit worthiness the use the card regularly and pay in full (preferably by DD so you never forget) very month.
Don't ever draw cash and don't go too near your limit (so you never accidently go over).
As already said, if you don't pay the card in full always pay a little more than the minimum.


It's up to you but three months at 0% isn't much use unless you have a specific short term cash flow problem.

alcapone93

CLAPTON wrote: »

If your aim is to improve your credit worthiness the use the card regularly and pay in full (preferably by DD so you never forget) very month.
Don't ever draw cash and don't go too near your limit (so you never accidently go over).
As already said, if you don't pay the card in full always pay a little more than the minimum.


It's up to you but three months at 0% isn't much use unless you have a specific short term cash flow problem.

I have set direct debit for full amount right at the beginning so I guess this whole 0% offer isn't for me. Thanks guys