New to credit cards

Anon121

Hi I'm wanting to purchase an iPad and have seen the 0% 12 month offer they have on at the moment with Apple, however it's only through PayPal credit which I'm unsure whether to use, I have a PayPal account that I use but never gone for the credit option. Wondering whether I'd be better getting a 0% card and getting the iPad only on it then paying the card off monthly as if I was directly paying Apple and not using the card for anything else. I only really need 12 months as it works out £39 a month which is manageable and I'd rather get it paid and out the way sooner rather than spreading it over even longer.

So is it correct that once the 0% period ends on the card that that's it then and I'd be charged interest on any other purchases (I imagine if not paid by the statement date) so would I then just close that card and go for another one if I want to make another big purchase?

We're getting married in 18 months so going to be an expensive time, I'm hoping we will be able to pay everything upfront but it's in the back of my mind should I hunk about getting a card as a fall back just in case. But if I take a card out now I hunk it's too early as we don't need to pay anything yet so would I just take another it nearer to the time? How many cards can you have at once? Although i should be done with the card I'd take out now bbthen anyway as it will be cleared in 12 months.

I do have a Dorothy Perkins card which I didn't realise but is a MasterCard, I only took it out about 3 months ago thinking it was a store card fr Dorothy Perkins but turns out I can use it anywhere but no nterest free, balance has to be paid within a couple of weeks of the statement, I've inly spent £100 on it and cleared it off right away when got statement, but that's the only experience I have with credit cards! Sorry for all the questions and Tia :-)

grumbler

Anon121 wrote: »

So is it correct that once the 0% period ends on the card that that's it then and I'd be charged interest on any other purchases (I imagine if not paid by the statement date)

Yes, buy the due date that is ~20 days after the statement date.

so would I then just close that card and go for another one if I want to make another big purchase?

You can go for another without closing as it's convenient to use a CC for day-to-day spending too, not only for big purchases.
It's a different question whether you'll be given another card. This depends on your income, credit history and other credit used and available. Without a history you may find it difficult to get a CC with perks, including with 0% on purchases.

We're getting married in 18 months so going to be an expensive time, I'm hoping we will be able to pay everything upfront but it's in the back of my mind should I hunk about getting a card as a fall back just in case.

Well, you don't sound convincing as now you don't have money saved even to by a pitiful iPad.
Feel free to ignore MHO, but I think it's better to start saving instead of buying toys on credit.

I do have a Dorothy Perkins card which I didn't realise but is a MasterCard, I only took it out about 3 months ago thinking it was a store card fr Dorothy Perkins but turns out I can use it anywhere but no nterest free, balance has to be paid within a couple of weeks of the statement, I've inly spent £100 on it and cleared it off right away when got statement, but that's the only experience I have with credit cards!

Well this is a bit of history.

Anon121

I'm not sure if you meant it too but you came across quite rude in your response, perhaps true to your name.... Hey ho. Anyway in actual fact we do have a little saved in an isa but not wanting to touch it hence it being in an isa! we have a mortgage maybe that would help towards credit history and also have 2 mobile phone contracts in my name for the past 5yrs.
I consider myself to be fairly careful in not getting into debt and saving etc hence never having a credit card until low at nearly 30 yrs old. thanks anyway.... And merry Christmas

SnowTiger

Anon121 wrote: »

Hi I'm wanting to purchase an iPad and have seen the 0% 12 month offer they have on at the moment with Apple, however it's only through PayPal credit which I'm unsure whether to use, I have a PayPal account that I use but never gone for the credit option. Wondering whether I'd be better getting a 0% card and getting the iPad only on it then paying the card off monthly as if I was directly paying Apple and not using the card for anything else. I only really need 12 months as it works out £39 a month which is manageable and I'd rather get it paid and out the way sooner rather than spreading it over even longer.

Perhaps using the PayPal offer would be better than using a credit card because it would encourage you to pay it off within twelve months.

Using a 0% credit card you'd find the minimum monthly payment is a lot less and you might not pay off the balance before the 0% period ends, then start paying interest on it.

For example, purchase price is £468. Using the PayPal offer your first month's payment would be £39. Using, say, Barclaycard your first month's payment would be £11.70 (2.25% of outstanding balance). If you chose the credit card option it would be easy to pay the £11.70 minimum and promise yourself you'd pay extra next month; or, carry on paying the minimum and promise yourself you'll pay the remaining balance at the end of the 0% offer. Then fail to do so.

Anon121

That's great thank you, very helpful :-)

bigadaj

Anon121 wrote: »

I'm not sure if you meant it too but you came across quite rude in your response, perhaps true to your name.... Hey ho. Anyway in actual fact we do have a little saved in an isa but not wanting to touch it hence it being in an isa! we have a mortgage maybe that would help towards credit history and also have 2 mobile phone contracts in my name for the past 5yrs.
I consider myself to be fairly careful in not getting into debt and saving etc hence never having a credit card until low at nearly 30 yrs old. thanks anyway.... And merry Christmas

That's good, however saving in a cash isa is a pretty poor deal, unless it's a help to buy one.

Savings are best held in interest paying current accounts now, assuming you have the discipline not to spend if at the earliest opportunity.