0% credit card to cover employment gap? good idea??

i.love.baking

Would really like your advise on this please!

So, in a couple of weeks I'm going to have a short gap in employment and so will not have any income for a few weeks- I'm a teaching assistant and am going from working through an agency to starting on a contract in September, so won't have any money coming in until end of september. Money isn't a huge huge issue as I can go stay at my parents for a large part of the school holidays. But obviously there's going to be some neccessary spending in this time- food, petrol, rent etc. I have some savings, but I would like to keep the majority of this in the bank account if possible. I have a small interest free overdraft. plus I have saved a bit extra in the last few weeks to cover a bit of this gap as I knew that I was going to have a payment gap in the holidays.

The idea I have is to apply for a 0% credit card to cover essential spending in this time, paying the minimum until the money comes in? and then upping it once I get my wage. I've never had a credit card and never been in debt (apart from a student loan and a bit of an overdraft while I was a student) and I really don't like the idea of debt at all- I've been brought up to only buy what I can afford and when you have the money to buy outright.

Any advise? Is this just a recipe for disaster?

bigadaj

You're unlikely to get a 0% offer on a first card, maybe try and application with the bank you hold your current account with as they have a record of your spending. If this I rejected then try for a poor credit starter card, something with initial in the name or vanquis, Aqua etc.

Easiest thing is try on the acceptability checker on this site to give an idea of your chances.

Even without a 0% deal then cards are useful as you get 1-2 months free credit before you have to pay a statement so that can tide you over. Not paying in full after that time means you incur interest but it's better than a payday loan or being stranded.

In your situation then whilst you ideally pay in full, even if you can't then you will incur interest but so long as you pay as soon as you get your salary then the interest is unlikely to be huge, probably looking at 2-3% per month.

You need to have some discipline and not spend excessively when you get a card, but having a credit card and putting your normal soend through it has benefits, it builds your credit file and will help in time in getting a mortgage for example. Once you have had one for a while you can get cards with cashback or other perks, and section 75 means that if you buy soemthing larger and have problems with the supplier then you can also claim from your card supplier as an alternative.

Thrugelmir

Will your LL accept payment by CC?

i.love.baking

Thanks for your help,I hadn't realised that all cards come with 0% for the first couple of months so thanks for that info! I had a look at the ones through my bank and they all seem to have an annual fee which defeats the point!
had a look through the eligibility checker on here and there's one that has a 95% acceptance for it so may give this a try rather than my bank and then go for a credit builder one if rejected.

YorkshireBoy

i.love.baking wrote: »

Thanks for your help,I hadn't realised that all cards come with 0% for the first couple of months

You misunderstood. Most cards have "up to 56 days" interest free credit providing you pay the bill in full. You won't be doing so (reading between the lines), so if you can't get a card with an introductory 0% offer you will pay interest...likely to be quite high on a first card I'd imagine.

bigadaj

i.love.baking wrote: »

Thanks for your help,I hadn't realised that all cards come with 0% for the first couple of months so thanks for that info! I had a look at the ones through my bank and they all seem to have an annual fee which defeats the point!
had a look through the eligibility checker on here and there's one that has a 95% acceptance for it so may give this a try rather than my bank and then go for a credit builder one if rejected.

As abive on a normal card you get 4-8 weeks before interest is charged, if you don't pay the statement in full then you get charged interest from the date of purchase. On a starter card this could be 3% per month which is high but can help you out of a hole in an emergency, so long as you pay in full the next month.

[Deleted User]

Aqua are a good 'credit builder' cad. They are giving 0% for 4 months via totally money (you have to go via link https://www.totallymoney.com/credit-cards/credit-cards-bad-credit/card/aqua-0-on-purchases/?m=ext&cam=cardalertjuly1&csrc=362) - so you could pay the minimum each month then clear it within 4 months.

As a first card you're unlikely to get a massive limit, so even if you don't get a 0% card, the interest will only be < £20 per month realistically - a lot cheaper than a Payday loan, especially if it gets you out of a tight spot.

Run your details through that eligibility checker - I like the MSE checker, but different sites check different cards so work a look (it still won't affect your credit rating). Also that 4 months 0% appears to be an exclusive via that site.