0% APR Credit Card

Matt1982Chatham

I've had the idea to get a 0% interest credit card for two years and buy everything on it and pay it all off after the two years is up. This way I can save the cash needed to pay the debt in a bank account and make about £100 in interest. My question is will this affect my credit rating, I have another credit card with £13K limit with nothing on, the limit for the 0% card is @5k.

Cheers

[Deleted User]

Why would you pay it off after the 2 years is up? You would start accruing interest on the balance.

No it won't affect your credit rating since one does not exist

Nebulous2

Lots of people do, or have done similar. Look at the stoozing sub-forum.


Do it if it is of any value to you. Don't worry about your score, particularly if that means costing you money. If you need credit further down the line and it proves difficult you can always pay it off then.



Remember to pay the minimum payment, on time, every month.

Matt1982Chatham

So once you clear balance does credit score return to 'normal' straight away? If it gets affected at all?

[Deleted User]

No. Credit scores tend to drop with every change, so paying off the debt will make it drop.

That's why they're not used or seen. Ignore it.

You only need to be concerned with how lenders view you, not the CRAs.

touch1337

!!! wrote: »

Why would you pay it off after the 2 years is up? You would start accruing interest on the balance.

You dont pay it off after 2 years, you pay it off at the end of the 2 year interest free period.

Say you spend 300 per month on your credit card. Rather than pay off the balance at the end of the month, you put that 300 into an interest earning savings account.
After 2 years, you've got £7200 (£300 x 24months) + interest in the savings account and a bill of £7200 on the credit card.
Use the balance to pay off the card before the 0% period ends, pocket the interest.

*maths is simplified a little, you'll obviously need to pay the minimum on the card each month.