Paying catalogue with CC

marcsshell

Possibly a silly question but if I pay my catalogue with DH 0% CC will we be charged anything?

System

Catalogue?

If you buy something on a 0% CC you will be charged whatever that item cost, eventually.
You will have to pay at least a minimum payment and watch the 0% timescale.

[Deleted User]

It depends if what the merchant classes the transaction as.

If it’s a purchase, and the CC in question is a 0% purchase card then yes - but then the minimum payments on the CC need to be met.

If they class the transaction as a money or cash charge then no it won’t be covered under the 0% promo

Enterprise_1701C

I paid Very by cc, the first of three payments and then paid the last two thirds of the payment together. I was not charged by my card, I paid off the card in full on time on both occasions.

marcsshell

Thanks for replies.

I have a balance on my catalogue that I am paying off 100.00 a month on buy now pay later. This is due to finish soon which is why we where thinking of using the CC to pay it but we can't afford to pay this off in full each month.

May be better to make minimum payments on CCs and throw the excess money at Very and then up CC payments. 2 of them are 0% the other one will be paid off this month.

[Deleted User]

marcsshell wrote: »

Thanks for replies.

I have a balance on my catalogue that I am paying off 100.00 a month on buy now pay later. This is due to finish soon which is why we where thinking of using the CC to pay it but we can't afford to pay this off in full each month.

May be better to make minimum payments on CCs and throw the excess money at Very and then up CC payments. 2 of them are 0% the other one will be paid off this month.

And if you haven't already, post a SOA on the DFW board if you're having to rely on buying stuff on credit/finance, especially catalogues who charge 20% more on items usually compared to high street prices

marcsshell

!!! wrote: »

And if you haven't already, post a SOA on the DFW board if you're having to rely on buying stuff on credit/finance, especially catalogues who charge 20% more on items usually compared to high street prices

Already have a debt free diary. Ran up debts last year by being stupid. Haven't used catalogue or CC since last August but made that fatal error of thinking "oh it's ok it's buy now pay later so I have plenty of time to pay it back" Then we gets to just before they start charging interest and hardly anything paid off.

LuSiVe

marcsshell wrote: »

Thanks for replies.

I have a balance on my catalogue that I am paying off 100.00 a month on buy now pay later. This is due to finish soon which is why we where thinking of using the CC to pay it but we can't afford to pay this off in full each month.

May be better to make minimum payments on CCs and throw the excess money at Very and then up CC payments. 2 of them are 0% the other one will be paid off this month.

Buy Now Pay Later payments for Very have always been classes as a credit card purchase for me.

(Anything I put on BNPL I always pay off in equal installments over the interest free period so I don't end up in your situation....)

Stuart_W

CC payments off catalogue accounts are treated as purchases by the credit card company. It is DEFINITELY worth paying off the BNPL balance on almost any credit card you can get - even if you can't get a 0% one.

With Littlewoods for example, every £100 on a 3 year (156 week) repayment plan with 1 year BNPL will actually lead to £143.61 interest being added immediately on the day the BNPL period ends, and £1.57 weekly payments begin for 3 years. The interest is back dated to the purchase date and front-loaded based on the repayment schedule.s

Even if you can only qualify for a rubbish 49.9% APR credit card or loan, you will still save significantly. Every £100 on a 49.9% credit card, paying back at £1.57 per week (which is £6.80 a month) will be paid off in full in after 1 year and 9 months rather than 3 years! A total of £41 interest rather than £143.61 for every £100.

So yes, pay it off in full from the catalogue before the end of the buy now pay later period with the lowest rate loan or credit card available to you (provided you stick to your repayments and don't get sucked in to the minimum repayment on the cc)

If you have an interest-bearing catalogue account (like Very)the interest is still backdated for the BNPL period, but then also added to each statement as an outstanding balance. Same principle applies though, even if the cc has the same rate as the catalogue account as you save the backdating of interest at least.