Would this work?

UnknownSamm

Hi everyone,

I'm currently in debt of £400 with Aqua. I have been successful with Capital One where I get 0% interest for the first 6 months on balance transfers. However my limit is only currently £200. I am transferring the £200 or slightly less including the BT fee to the Capital One card, I should have £200 left (or I will pay off more using my savings to leave me at £200).

I get paid on Friday, now I can't afford to pay off the remaining £200 as I don't earn much so that has to last me the month. At the minute I'm paying about £50 a month to pay off the card however lots of that is interest as it is at an extortionate rate so it's only going down slightly.

Now Aqua have a "pay back the balance in full each month and you don't pay interest" so I was thinking, if I pay off the £200 on Friday to clear the debt on Aqua, can I use the card to make all of my normal purchases I would use that £200 for, but pay it back in full next pay day without paying interest and keep repeating each month?

Basically, I use my credit card in the same way as my debit card and pay it off in full next pay day (so still sticking with the budget) and not pay interest. This cycle would end next year when I get made permanent (I'm on an apprenticeship) and my wage will triple so I can afford to pay it all off.

With the Capital One card, I will pay off the £50 I would have spent payin off the Aqua card so I will have zero debt before the 0% ends.

I am trying to easily reduce my debt and improve my credit score which is awful and I feel both of these will benefit me however I wanted others opinions.

Thank you
Sam

bigadaj

The principle you're following is fine, but to get the interest free period on the card you have to pay it off, after you do this the first time you have a little trailing interest and then it shouldn't incur interest.

Moving to a 0% card is good but make sure you pay the minimum each month so you don't lose the deal.

Can you do anything now to get the extra money to pay off the card, overtime, a bar job?

If you're credit rating is ok then look at the bank switching deals, they have monthly pay in amounts but you can hit those by transferring money several times between your accounts.

UnknownSamm

bigadaj wrote: »

The principle you're following is fine, but to get the interest free period on the card you have to pay it off, after you do this the first time you have a little trailing interest and then it shouldn't incur interest.

Moving to a 0% card is good but make sure you pay the minimum each month so you don't lose the deal.

Can you do anything now to get the extra money to pay off the card, overtime, a bar job?

If you're credit rating is ok then look at the bank switching deals, they have monthly pay in amounts but you can hit those by transferring money several times between your accounts.

My credit score is terrible, especially after taking out the Capital One, so there is no option for 0% elsewhere as I'd never get accepted. I'm happy to pay the additional interest for the month after as I'll be saving a lot more in the long run.

My apprenticeship is full time 9-5 and as you can imagine I would like some time when I'm not working so I'd rather go down this route as financially I'm sound if I do it like this, obviously if it works.

Thanks

[Deleted User]

UnknownSamm wrote: »

My credit score is terrible, especially after taking out the Capital One, so there is no option for 0% elsewhere as I'd never get accepted.

Don't use your credit score as a guide to anything. Being accepted for a 0% offer, even with Cap One, is good start.

Try an eligibility checker to see if you have any other options. If not, look again in a couple of months.

What is your file like? Littered with defaults, or just not much on it?

UnknownSamm

Deleted_User wrote: »

Don't use your credit score as a guide to anything. Being accepted for a 0% offer, even with Cap One, is good start.

Try an eligibility checker to see if you have any other options. If not, look again in a couple of months.

What is your file like? Littered with defaults, or just not much on it?

Thanks I'll try an eligibility checker. I've never missed a payment however I have gone over the limit a couple of times due to the interest rate but paid back the amount I went over by straight away. No defaults or anything.

My file on the free Clear Score app shows 5 positives and 2 negatives, the negatives are that my credit limit is low and I have utilised nearly all of it. Funnily enough, it says I've never been over the limit on my record and it's actually a positive.