Understanding 0% Purchases on CC

allycatraz

Hello All,

I was wondering if you could help with understanding the 0% Purchases on the Halifax card for example.

I'm thinking of getting a new car (used) and paying 50% cash/cheque and 50% on credit card (hopefully the halifax 0% purchases for 12 months card).

Am i right in thinking that if I put £3000 (assuming thats the limit i can get) on this halifax card, that i wont be charged interest until this 12 month 0% purchase introductory offer has finished?? (assuming that at least the minimum balance is paid off each month)

So...
Purchase made of £3000 on 1st Jan
Min balance per month (3% of original purchase) = £90 per month

Aim...
To ensure the card is paid fully before the 12 month offer runs out, i need to pay £250 per month. (3000/12) So i'll pay the minimum balance by Direct debit and then make up the remainder £160 by cheque or debit card.

Based on that scenario, as long as the £3000 is paid before 12 months is up (£250 or more per month) I wont get charged interest??

Any info would be great!!

Thanks guys!!
AJ

YorkshireBoy

Just two points...

1. The dealer will probably charge you 2-3% for the privilege of paying by credit card (simply because they will incur costs for processing the transaction). If they offer to waive this fee, you didn't negotiate hard enough on the price!

2. I believe the Halifax minimum payment is only 2%.

Other than that, your plan looks OK.

Fortunately, HBoS statements show the 0% end date from day one, so you'll have a constant reminder of when to clear the balance to avoid interest.