Completely new to credit cards, need some help.

golty

Thought i'd never touch credit cards but just been tempted by 0% purchases credit cards.

I'm only 19 but I am in full time employment and am currently financially sound with no debts and no monthly bills, done a few applications for these cards and the best I have been offered is a 23.9% APR rate with a 19 month 0% purchases rate from Tesco bank.

I would use a credit card very rarely and only to make one off purchases on big ticket items, spreading the cost seems a lot better than paying it all in one big go.

So with a 19 month interest free period does this mean I could say buy something costing £800 and pay back £42.11 for 19 months and not incur any interest charges? basically borrowing money for free? (£42.11 * 19 = £800)

Or is it more complicated than this?

grumbler

golty wrote: »

... done a few applications for these cards and the best I have been offered is a 23.9% APR rate with a 19 month 0% purchases rate from Tesco bank.

APR is irrelevant, even when 0% expires, if you pay the balance in full every month.

So with a 19 month interest free period does this mean I could say buy something costing £800 and pay back £42.11 for 19 months and not incur any interest charges? basically borrowing money for free? (£42.11 * 19 = £800)

Basically yes, but make sure that you pay more than the minimum payments and do it on time. To make your life easier set up a DD for minimum payments and make extra payments if you wish right after the minimum payment is taken.

Also, just to clarify, 19 months 0% is a one-off introductory offer for all your purchases within the first 19 months. If you make a purchase, say, in the month 15, it will have only 4 0% months.

golty

Ok thanks for that, so after the 19 months if I were to buy something I would have to pay it back within the 51 days interest free period or I will get charged interest?

grumbler

golty wrote: »

Ok thanks for that, so after the 19 months if I were to buy something I would have to pay it back within the 51 days interest free period ...?

Yes, but 51 days is the maximum you get if you make the purchase at the start of the billing month. The minimum will be ~20-21 days.

golty

oh ok thanks, think I may get a credit card just so I have one. With the tesco card if I don't use it I won't be billed anything will I?

My last question is after the 19 months if I had no remaining balance on the tesco card could I just cancel it and take out a new deal with someone else?

Thanks for all the help so far.

grumbler

Yes, you can cancel it or keep without using.

nearlyrich

If you transfer a credit card debt to another card you will more than likely incur 2 to 3% charge on the amount transferred.

grumbler

nearlyrich wrote: »

If you transfer a credit card debt to another card you will more than likely incur 2 to 3% charge on the amount transferred.

Stop confusing the OP. They didn't ask about transferring the balance.

nearlyrich

grumbler wrote: »

Stop confusing the OP. They didn't ask about transferring the balance.

I was responding to this bit of the OP's last post..

golty wrote: »

My last question is after the 19 months if I had no remaining balance on the tesco card could I just cancel it and take out a new deal with someone else?

grumbler

Have you missed the word "no" twice?

... if I had no remaining balance...

Specsavers...?

bengal-stripe

golty wrote: »

With the tesco card if I don't use it I won't be billed anything will I?

You will get a monthly bill, showing you the minimum payment required and the date that amount is due.

You will have to pay the minimum (usually 1% or £ 5.00) every month without fail and on time, otherwise the CC might revoke the interest-free deal.