Advice on 0% credit card

consumers_revenge

right then boys and girls......time for what might be a dumb question and please forgive in advance.


were looking at having some DG windows replaced and its about 2.5k


so I was thinking of bunging this on one of those 27 month 0% credit card things ( I do have 1 other card that's paid off in full every month ). how does this work? do I just apply and if accepted pay for the DG on the 0% credit card then just pay the minimum payments then just pay the outstanding balance at the end? Can I do it another way and just roughly divide the 2500 by 27 and pay that so theres nothing at the end or even early finish?


as I said might be a REALLY dumb question but I only ever use and pay my current card month by month.


Cheers.


CR

[Deleted User]

Yes to either approach.

Assuming the supplier accepts cards and doesn't charge a prohibiltive fee.

consumers_revenge

prohibiltive fee.?

Ebe_Scrooge

A lot of suppliers ( notably car salesman ) pass on the 2 - 3% fee ( or whatever it is ) that they get charged by the credit card company. So you end up paying for it, often negating any benefit of the 0% interest.


But assuming there's no fee then your plan is sound. The best way of doing it is to work out how much you need to pay each month - as you say, divide the 2500 by 27. Pay the minimum to the card each month, and pay the balance into an interest-paying instant-access savings account ( if such a beast still exists these days !! ). Then just before the 0% deal expires, use the savings to pay the card off in full. No interest to pay, and you'll have earned enough interest on your savings to buy a pint of shandy :rotfl: