Some advice please?

Sweet_Girl_x

Terry_Towelling wrote: »

You used the words, 'back-up' and 'emergency' in your opening post. Does that mean you don't actually plan on using the card for spending whilst on your trip and that you will only use it when checking into hotels (where a card swipe may be required) and if you run into an emergency?

Hello Terry, yes no shopping is intended but it is New York! In all seriousness though my first reasons for the card is for preauthorisations and emergencies (non shopping related :rotfl:)

Terry_Towelling

Sweet_Girl_x wrote: »

Hello Terry, yes no shopping is intended but it is New York! In all seriousness though my first reasons for the card is for preauthorisations and emergencies (non shopping related :rotfl:)

I think the italics in your post say it all - have fun!

From the wording you have supplied in other posts it does indeed look like you'll pay no interest on purchases for the first 2 years of holding the account. The 0% Balance Transfer offer will also last for two years from the opening of the account as long as you transfer the balance to the account within 90 days of opening - there will be a fee for transferring the balance by the look of it - don't know how much but maybe a couple of percent of the amount transferred. The fee will also be interest free.

So, you should probably transfer the Capital One balance sooner rather than waiting until next year when the 0% transfer offer will have expired (if the transfer fee is acceptable to you). If there is any room left on the Lloyds card after the transfer (plus transfer fee), you can use that to make your 'emergency' purchases in NY and use the empty Capital One card for the hotel check-ins - but try not to put any spending on it unless you can pay it off in full when you get back.

You will of course have to pay at least the minimum payment before the due date each month in order for the Lloyds offers to remain valid - one slip and they will start to charge you interest at whatever the prevailing rate is.

Willing2Learn

Sweet_Girl_x wrote: »

So let's say my credit limit is £1000. If i spend £995 on it the first day, I don't pay any interest for 2 years?

Correct. Just please make sure you budget for any shopping spree in New York, so that you have a workable repayment strategy. Otherwise you could end up with having a CapitalOne balance plus a Lloyds balance outstanding at the same time! A doubling of debt in 24 months.

Sweet_Girl_x wrote: »

I was planning early next year to transfer my balance of my capital one card (of which the APR is around 29.9%) as if there is no interest for a year I have more chance paying it back quicker over the 2 years. Can I do that or is it saying if I want to balance transfer I only have 3 months.

You have only 90 days from the new card account opening. There will most likely be a transfer of around 3%. After the 90 days expire the interest rate will go up.

I hope you have a lovely time in New York.

Edit: Just remembered, When you are in New York, every transaction will incur a 2.95% non sterling foreign transaction fee. (Unless you have an Lloyds Avios Reward card)

Emily_Joy

Sweet_Girl_x wrote: »

Hello Terry, yes no shopping is intended but it is New York! In all seriousness though my first reasons for the card is for preauthorisations and emergencies (non shopping related :rotfl:)

Considering the GBP/USD rate and foreign transaction fees it would be wiser
1. Transfer balance from Capital One to Lloyds, cut the Capital One and close the account now, before any spending, to take advantage of 0% balance transfer offer.
2. Do your shopping in London after coming back from NY - you will get the same stuff cheaper and it will be within promotional period on purchases.

guesswho2000

Sweet_Girl_x wrote: »

So let's say my credit limit is £1000. If i spend £995 on it the first day, I don't pay any interest for 2 years?

TL;DR - but just wanted to add, in case it hadn't already been covered, if you spend £995 on day one, remember you still need to make minimum payments every month for the two years, despite the fact you're not being charged interest - miss one, and your interest rate will be hiked to whatever it is!