Understanding correctly?

ClaytonR

Hi everyone, I was reading this article on credit cards, small loans, etc, (article is on this website, title: cheap credit card loans)

and I just joined this forum to get some insight from the community. I'm researching this because I need $11,000 for education. I have applied for student loans already and it'll take around 3-4 months to be processed(I live in Canada), so I'm looking for alternatives. I also understand that this is a UK site, but I still want advice from this community. I appreciate the help!

Do I understand the following correctly? If I get a credit card like sainsbury nectar, 28 months, 0% interest free, 18.9% APR, and I spend $2000 with the card, does that mean if I don't pay off that $2000 for 12 months, does that $2000 get charged interest?

Or a more extreme example. If I max out the credit card ($5000) and don't pay it off for 27 months, would that $5000 get charged interest? Or would it get charged by 18.9% after 28 months have gone by?

Also in the same article, it says you MUST make the monthly repayments or you lose the 0% interest. Why? If I spend $2000 on the card, I have to make a monthly payment till it's paid off?

This is how I understand it, am I wrong? Thanks in advance! :beer:

Ben8282

I will start by pointing out that as a non-UK resident you have ZERO chance of obtaining such a card and that, even should you become resident in the UK in the future, you will not be able to obtain such a card until you have built up a credit history here and have a reasonable income coming in.

That said, you are basically correct that there will be no interest during the promotional period provided that you follow the rules.

If you obtain a Balance Transfer card then you may transfer the balance of another credit card to this card and, provided that the balance transfer is done within the specified timeframe, you will pay no interest on the balance transfer amount for the period specified . If the balance transfer is not repaid by the end of the specified period you will be charged interest from the date that the promotion ends at the normal interest rate applicable to the card.

If you obtain a Purchases card you may make unlimited purchases (but obviously may not exceed your credit limit) within the specified timeframe and will not be charged interest on these purchases for the period specified. If the purchases are not repaid by the end of the specified period you will be charged interest from the date that the promotion ends at the normal interest rate applicable to the card.

Some cards offer both types of promotion.

You must make the at least specified minimum payment each month.

meer53

You should be researching whats available in Canada.