How does the 0% actually work on credit cards?

grumbler

rash.m2k wrote: »

Also whats the difference between '19 months' shopping with no interest to pay' and 'Up to 55 days' interest free credit':

55 days is for normal use without any extra offers.
0% for 19 months overrides it.

audigex

Kittycat1981 wrote: »

If you was paying £5000 over 19 months the payments would be £263.16 per month to completely pay it off.

I would pay the minimum payment of £125 +£1 a month onto the card and pay £136.16p into a higher interest current account or savings accoun to earn a little bit of extra interest (which can go towards the cost of the credit card fee), then on the 19th month transfer over the outstanding balance of £2587.04 + £125+£1 minimum payment.

This is excluding the fee of between £75-£150

Or take this a step further and pay £125/month from your regular budget into the credit card, then spend the £125 on your regular monthly shopping (food etc) using your credit card.

That way you can put all £263.16 "Car Money" into a high interest savings account. Then pay off all £5,000 after 19 months.

This means you gain interest on an average of £2,500 over the 2 years, rather than an gaining interest on an average of £1,250 with the other £1,250 sitting on your credit card doing nothing.

That should get you £75 interest at 3% over 2 years.