0% credit - Car insurance

Luke1329

Hello All,

I'm looking to take out a 0% Credit Card to pay off my car insurance ONLY and wont be putting anything else on the card.

I have been offered one from Tesco for 19 month 0%, however it says that for 6 months "Initial Buy now pay later" is free on purchase transactions, and after the 6 months it it 1.8%.

Does this mean I pay no interest on the insurance for the first 6 months, and then I pay 1.8% interest for the next 6 months?

Thank you for you help.

Luke Rogers.

joroshe

Tesco Bank no longer offer Buy Now Pay Later. The card that you have been offered means that you will pay no interest for 19 months on any purchases you make

fred246

You just have to pay the minimum at least for the first eighteen months and make sure it's all payed off before the 19 months. You will of course get clubcard points. I have made a lot of money over the years with cashback, points promotions, 0% for x months etc. I always feel sorry for people taking out payday loans at thousands APR and I might have £20K on 0% at the end of 18 months. As long as you are sure you can pay it off by the end great. Avoid it if you think it will tempt you to spend money you don't have.

Luke1329

joroshe wrote: »

Tesco Bank no longer offer Buy Now Pay Later. The card that you have been offered means that you will pay no interest for 19 months on any purchases you make

So just to be 100% sure.

If I put the £1000 insurance on the 0% Card, and pay £100 a month for 10 months, I wont pay ANY interest.

Thank you,

fred246

Sounds good. Some insurance companies may charge a little extra for paying by credit card (as compared with debit card) but it will be cheaper than paying for car insurance monthly. (assuming they don't do 0% on paying by installment).

fred246

You make the most money by putting all your spending on the card, paying the minimum payment and then saving lots of money in as high interest as you can get account. Make sure the savings has more than is owed on credit card. At end of term withdraw savings and pay off card. Interest rates are so low you earn very little now but before the crash I made a lot like this.