Using 0% cards - one after the other

book12

I have one 0% purchase card. I am nearly half way through the interest free period. The direct debit is set to minimum instead of paying in full every month. I do sometimes make additional payments.

My plan is to do the following in this order:

1. Use my savings to pay off the amount near the end (or at the end) of the interest free period. I do have enough savings to do this.
2. Close 0% purchase card.
3. Open another 0% card with the same bank or different bank.

Reapeat those steps for the forseeable future.
How would this affect credit history? Would it be bad?
Would I save more money by using 0% purchase cards all the time?

Or do the following:

1. Use my savings to pay off the amount near the end (or at the end) of the interest free period. I do have enough savings to do this.
2. Continue to use the card after the interest period ends, and change the direct debit to pay in full every month.

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I do not want to do balance transfers.

Suggestions/advice appreciated.

saver861

.... or you could get a 0% balance transfer and transfer the balance at the end of the existing 0% to the new card. Keep paying the monthly minimum and keep your savings in the bank getting interest.

That won't be bad for your credit history - main thing that affects credit history is missing payments or having to much maxed out credit.

Candyapple

Either plan works. If you stick with the first one, bear in mind that some credit card companies require you to wait a certain time period before you are eligible to reapply again for one of their cards.

It would only affect your credit history in that say you are going for a mortgage in the near future and you had £10k on various 0% cards, your mortgage offer might be reduced by £10k to take this into consideration.

Paying off a credit card monthly on time is never a bad thing.

I use 0% cards all the time. They are great for stoozing.

If you with your second plan, nothing wrong with this again, however if you are going to do this, why not do it on a card that gives you something back? Such as a cashback card (Amex), or a points card (Nectar, Tesco etc.)