Interest Free Credit Card Question

DeafCassette

Hi everyone,

Just a question I'm hoping for a bit of guidance on, so any comments much appreciated in advance.

Some background: I've had a good experience purchasing a bed on interest free credit. The money was in the bank to pay it up front, but I thought - why hand it all over if they are offering the facility to pay interest free over a year? - So that's what I did, fantastic.

My old TV from 2004, as good as it was back then is showing its age.. It isn't even HD!!!

So, I need the whole shebang as follows:
TV Unit: £350
TV: £1000
Soundbar: £300
Playstation to go with £350

We are talking 2 grand bang on the money... I must be bloody mad, but it should all last me a good 10 years (fingers crossed)...

As before, the money is in the bank, earmarked for the purchases, but I've recently heard about the interest free credit cards

My question relates to the interest free time period. Does it start from your first purchase, or does it start from when they send it to you?

I want to budget for monthly repayments in the same way as when I bought the bed - initial outlay divided by however many months in the interest free period equals monthly repayments.

Also, how does it work if you purchase products say 3 months apart? Well, I suppose you pro rata the payments.

Thanks for your comments.

eco_warrior

I suppose it can vary from card to card but in my experience the interest free period usually starts from when the account is opened and has a fixed end date. Some banks may have a window during this fixed period when the purchases must be made i.e. first 3 months etc. Others may let you make purchases throughout the interest free period.

You'd really need to research the cards with these offers to find one that does what you want it to.

ViolaLass

The card will have a minimum payment, detailed to you when it's sent. Why pay more than that? Save the rest up and pay it off at the end.

DeafCassette

Thanks guys, I'll research the best, I think Sainsbury's do a 32 month period which looks good.

ViolaLass - many thanks for the tip there. I've already got the money saved, and am just looking at a way to smooth out the repayments, but I can see how that would work too, and would allow me to keep more in capital saved back. I'll give that due consideration too.

Dobbibill

Be mindful that the end date of offers with some cards is in between statements because it goes from account opening date which will be different to statement date. Try to aim to have it paid off by the statement before.

DeafCassette

Thank you Dobbibill, will watch out for that.

Sainsbury "Purchase Credit Card" is in the bag.

dresdendave

DeafCassette wrote: »

Hi everyone,



So, I need the whole shebang as follows:
TV Unit: £350
TV: £1000
Soundbar: £300
Playstation to go with £350

Somewhat dubious use of "need", "want" would be far more appropriate.


However in this instance the OP does have the money saved up and is choosing to spread payments, unlike those who get into serious debt due to not understanding the difference between "needs" and "wants".

zzzt

DeafCassette wrote: »

I've had a good experience purchasing a bed on interest free credit. The money was in the bank to pay it up front, but I thought - why hand it all over if they are offering the facility to pay interest free over a year?

I did this when buying white goods from AO.com. I thought if I can pay nothing for a year then why not stick that money in savings?

Turns out in the small print there is a fee if you want to repay it after a year instead of continuing with the loan.

If you are going to put it all on a credit card instead, then I think you still have to pay the minimum repayment amount each month (which won't be much, maybe £20). You just don't pay interest for the period, and then when the period is over, you should pay it all off to avoid accruing interest.

Coveredinbees!!!!

or balance transfer to another card if you making more interest than the fee to do the transfer. It is suggested that you make more than minimum payments, for instance minimum plus a pound, as it theoretically looks better on your credit file than just making the minimum payment.