Interest free credit card

Hi all

I'm new and would really like some advice please. I've never had a credit card before but am planning a one off purchase of £1,500 which I would prefer not to spend outright. My plans were to get a 0% credit card and pay this off in equal instalments having it fully repaid by the time the 0% interest rate expires.

I'm afraid of getting into debt and just wondered if anyone has any words of wisdom or can foresee and problem with this?

Thanks so much
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  • grumbler
    grumbler Posts: 58,629
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    No problems if you can make the payments you plan.

    However, you might find it difficult to get a card with 0% on purchases as your first ever credit card. If the bank you have a long standing current account with offers such card, start with this bank.
  • Would it matter that I plan to make above the minimum payments?

    I'm afraid of breaching the rules and losing the 0-% interest deal?
  • Cycrow
    Cycrow Posts: 2,639 Forumite
    you will only lose the 0% if you pay less than the minimum, as long as you are paying at least the minimum it should be fine.

    The main issue is wether you will be able to be accepted for a card or not, as the 0% deals tend to be aimed at those with better credit histories
  • You will be fine with min payments although as others have said it would be very hard to get a big enough credit limit for the first card and with 0% ...... but you will never know until you try.
    Marriage is hard. Divorce is hard. Choose your hard.
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    Life will never be easy. It will always be hard. But you can choose your hard.
  • As others have said, the only issue may be being accepted for a 0% card with little credit history.


    If you do get accepted then your plan is sound. Just ensure that you pay at least the minimum every month. If you miss a payment then most cards will stop the 0% deal and put you onto their standard APR - as well as the fact that you'll have a "missed payment" marker on your history.


    The best plan is to set up a direct debit. You can set this up for the minimum each month, or a fixed amount each month. That way there'll be no danger of you missing a payment.


    If you do this, for the first couple of months keep a close eye on your account - it's not unknown for the first DD to not happen, in which case you need to make a manual payment ( before the "payment due" date ).


    If you want to maximise the advantages of a 0% card, then what you do is pay the minimum each month, then put the rest aside into an interest-paying account. You'll earn a little bit of interest on your money, and have it available to pay the balance off when the 0% runs out. For example, let's say you calculate that you need to pay £100 per month to clear the balance by the time the 0% expires. But your minimum payment is £10. So you pay £10 each month to the card and £90 each month into a savings account. Then just before the 0% expires, you use your savings to pay off the remaining balance.


    Hope this helps.
  • You could try the <MSE credit card eligibility checker> to see what your chances are.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Thank you all very much for the great advice!
  • Hey everyone, so I'm just getting around to doing this now! I checked the eligibility checker and my chances are
    Very low. So I checked in my husbands name and he has 80%, so I think he will apply for one. However I am so afraid of him getting rejected and damaging his credit score.

    Can I just ask, can I make two separate purchases on the credit card, or what way does it work to trigger the 0% interest rate?

    Thank for your help everyone
  • grumbler
    grumbler Posts: 58,629
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    Bambi01 wrote: »
    However I am so afraid of him getting rejected and damaging his credit score.
    Rejections aren't recorded. 1-2 credit searches recorded have too minor and short-lasting effect to call it 'damage'.
    Can I just ask, can I make two separate purchases on the credit card, or what way does it work to trigger the 0% interest rate?
    Typically it's all purchases made during first N months - read the card-specific T&C.
  • grumbler
    grumbler Posts: 58,629
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    Last month I have a shopping experience at *** They can accept credit card payment. There are over 6000 famous brand items in this store. And now some of their items are 50% On Sale. If we pay by western union, money gram or bank transfer, They are willing to offer 10% discount. I decide to place another in the 3 days for Christmas.
    What a pathetic spam...

    Yeah, "western union, money gram or bank transfer" are very respectable ways of paying that inspire confidence, especially when buying from China. LOL.
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