Question about 0% cards

askid

Hi all.
I am going to buy new PC, and i was thinking to pay for it with cash from taken loan. My friend suggest me to have a look and took one of this credit cards with 0% on all purchases. I have started read about them and i have few doubts.
I've read in summary box that Interest Free Period is 56 days, so how that works to 24 months?
If i spend 2k from credit card at once on my new computer, i will have 24 months to pay it with no interest, paying back minimum demanded amount of money each month?
Is this affect my credit score in bad way?

Thanks

saver861

askid wrote: »

Hi all.
I am going to buy new PC, and i was thinking to pay for it with cash from taken loan. My friend suggest me to have a look and took one of this credit cards with 0% on all purchases. I have started read about them and i have few doubts.
I've read in summary box that Interest Free Period is 56 days, so how that works to 24 months?
If i spend 2k from credit card at once on my new computer, i will have 24 months to pay it with no interest, paying back minimum demanded amount of money each month?
Is this affect my credit score in bad way?

Thanks

Special introductory deals such as 0% on purchases for 24 months means anything you buy within that 24 month period will not have any interest incurred on it. After the 24 months is up then it starts to accumulate interest at a whopping rate every month.

So if you are going to buy a PC and you can get a card that will give you 0% on purchases for a period of time then that is the best way to do it. You pay off the minimum amount each month, around 5% and then either pay the full amount off when the 24 months is up or do a balance transfer to another card.

You need to ensure you always make the monthly payments and you need to ensure you can either pay it off or transfer the balance at the end of the special intro period.

You say you are paying for the PC from a loan already taken - does that mean you have already taken out the loan - in which case you might pay a penalty for early repayment.

You need to check out all the ins and outs first.

YorkshireBoy

saver861 wrote: »

You pay off the minimum amount each month, around 5%

Many providers stipulate 1% (plus interest, of which they'll be none during the intro period) these days, so the big danger here is that you pay £20 a month back on your £2K purchase and still owe over £1,500 at the end of a 2 year 0% on purchases offer.

askid wrote:

Is this affect my credit score in bad way?

Yes of course it will. You have a debt of £2K and a credit limit of £2K+...on top of what you already have.

saver861

YorkshireBoy wrote: »

Many providers stipulate 1% (plus interest, of which they'll be none during the intro period) these days, so the big danger here is that you pay £20 a month back on your £2K purchase and still owe over £1,500 at the end of a 2 year 0% on purchases offer.

Indeed. Of course for stoozing the smaller the minimum monthly payment the better. However, I always say that playing the CC's is only for the most diligent.

If someone does allow that to happen and have £1500 of debt after the two years then they were not right for stoozing anyway. Really OP would need to ensure he puts away enough so that he has the money to pay off the balance at the end of the two years.

He may decide to do a Balance Transfer at the end of the two years but still should have the discipline to have the £2k debt saved ready to pay off the card at any time.

YorkshireBoy

saver861 wrote: »

Really OP would need to ensure he puts away enough so that he has the money to pay off the balance at the end of the two years.

Best way of doing that is to pay each month what the loan repayment would have been, not the minimum shown on the statement. But many don't!

saver861

YorkshireBoy wrote: »

Best way of doing that is to pay each month what the loan repayment would have been, not the minimum shown on the statement. But many don't!

Precisely.

I've said before that I have done immensely well out of 0% cards in the 90's and 00's. However, between all my friends, family and work colleagues, there is only one work colleague that I recommended stoozing.

Just about all others would not have had the diligence and attention to detail necessary to make it work.

askid

I cant edit first post. I dont have any loan. I was thinking to take one for pc mainly to improve my rating since i never had any loan or card. Friend advise me to get credit card.

Is still unclear for me if stoozing affect rating in bad way.

saver861

askid wrote: »

I cant edit first post. I dont have any loan. I was thinking to take one for pc mainly to improve my rating since i never had any loan or card. Friend advise me to get credit card.

Is still unclear for me if stoozing affect rating in bad way.

It depends on your circumstances. If you have never had a loan or credit card before then you have limited means of building a credit history.

You can check your credit ratings for free on Noddle or Clearscore. That does not mean these are definitive but they will give you an indication.

I think you need to get a better understanding of credit rating etc as you seem to be confused about the concept.