0% Spending Card - What happens after?

phillw

23HomeRenovation said:

@Deleted_User - Ohh.. thank you! This is really helpful. I thought once the 0% interest period was over the card was essentially useless going forward but not necessarily the case for those on top of their finances.

Its also another direct debit, which you can turn into cash by opening current accounts that pay you money for having a certain number of direct debits.

maxximus75

Are you looking to get a 0% purchase card, initially?

Be wary and read the small print as some will only give you 0% on purchases made within say, the first 90 days (of account opening) for X months.  Purchases made after this date, will attract interest and only the ones made in the first 90 days will be at 0%

It's the same with 0% balance transfer cards.... they are usually in the first 60-90 days (of account opening) that they are 0% for X months.  Any transfers after will attract interest.  Carefully study the terms and conditions before you make the application.

I hope I've made some sense?

Jami74

23HomeRenovation said:

I'm looking to utilise this one by supporting everyday purchases to maintain/build my credit score and have 0% interest spending on larger purchases (not looking to max the card out - will utilise at 30%).

Do you have any larger purchases planned? If not, it might be worth waiting until you do and getting a separate card for the larger purchases. If you pay off the credit card in full every month (best by direct debit) then you don't pay any interest. A 0% credit card is useful for regular spending if your income is a bit up and down but if you can afford to pay it off each month, that is the best thing really. For large purchases, get another 0% credit card, make the purchase and then treat it like a loan by paying off a set amount each month to have it cleared before the 0% ends. It's not really a great idea to make a large purchase on a credit card and then just keep transferring the debt when the 0% ends, it's better to have a plan to pay it off. Some people just pay the minimum each month and put the rest in a savings account and then pay it in full before the 0% ends. If you are not paying it off in full each month make sure you have the direct debit set up to make the minimum payment, you always have to at least make the minimum payment, missing it looks bad on your credit history.