Low interest cards

in Credit Cards
6 replies 659 views
I'M very new to credit cards and whilst I understand the basics theres something I'd like a bit of help with. I recently applied for a loan of £5000 which got accepted but the interest rate came back as 17% instead of the 4.5 advertised. Fair enough, i kind of expected it. So my main issue here is I need the £5000 for a new car but naturally im not over the moon about the prospect of paying around £2000 interest. I was looking around and came across the 0% credit cards. Now lets say I get this card with the 0% interest, spend £5000, then start paying it off (i guess i should mention here, the card im looking at has 0% fixed for 27 months and debt to be repaid after 34) at the end of the 27 interest free months, that would leave me with 7 months to pay off the remaining balance. Now lets say I needed more than 7 months, could i extend it or take out another 0% card and transfer the balance? It all sounds a bit obvious so im not sure whether im reading into it correctly

Replies

  • zx81zx81 Forumite
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    You won't be able to extend it, but you look to transfer it elsewhere, assuming you can get accepted.

    However, with a thin file, it's unlikely you will get a 0% card.

    If you take the loan, remember you can always overpay and reduce the interest.
  • SncjwSncjw Forumite
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    I don!!!8217;t understand how you have 27 months 0% but then an extra 7 months on top to pay the debt off?
  • Sncjw wrote: »
    I don!!!8217;t understand how you have 27 months 0% but then an extra 7 months on top to pay the debt off?

    It was just an example of a card I was looking at which was 34 months to repay the debt off with 27 of those months being 0% interest, which would mean 7 of the months id be paying interest
  • zx81zx81 Forumite
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    btwJohn wrote: »
    It was just an example of a card I was looking at which was 34 months to repay the debt off with 27 of those months being 0% interest, which would mean 7 of the months id be paying interest

    You'll have read that wrong.

    Once you're out of the promo period, you have as long as you want to clear the debt, subject to making min payments.
  • Craig1981Craig1981 Forumite
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    to be fair, if loan quote was 17% on advertised rate of 4%, you will probably not get the offer rate of 27 months at 0% either, if accepted.
    the advertised 27 months is best case scenario, but subject to your individual cricumstances
  • Craig1981Craig1981 Forumite
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    id suggest using comparison section on cards in Noddle, Clearscore or Moneyclub... thi ill tell you the likelihood of being accepted for a card
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