Booking a flight

[Deleted User]

angwyn said:

Ebe_Scrooge said:

angwyn said:

Ebe_Scrooge said:

As esbanker says, with little or no previous credit history, the chances of being accepted for a 0% card are slim.  An "ordinary" card is well worthwhile if you can get one with a high enough credit limit, for the added protection it gives you (although do remember, the Section 75 protection offered by credit cards is no substitute for proper dedicated travel insurance - this really should be high on your list of priorities).

If you do decide to pay by card, and it's an ordinary interest-bearing card, then don't be planning to "pay it off gradually" - doing so will incur some fairly hefty interest charges.  By all means use it to buy the tickets, but pay it off in full when the statement arrives.

Thank you.
The one I've applied for is 0% on spending for 15 months.
Does that mean I can make multiple purchases over 15 months but pay the statement in full every month?
Or can I pay for my flight and then have 15 months to pay it back with 0% interest.
Many thanks for your input

Assuming your application is successful - then you'd buy the flight and pay it off over 15 months, with no interest.  Two important points to bear in mind.  Firstly, you absolutely must pay at least the minimum amount each month, on time.  If you don't, you'll have broken the terms & conditions, and the 0% offer will be revoked, and you'll start paying their standard APR.  Set up a Direct Debit to make sure you never forget.  Secondly, make sure you clear the balance at the end of the 15 month promotional period, otherwise any remaining balance will begin to attract interest at the card's standard APR.

In terms of making further purchases, you need to check the T&Cs carefully.  Some cards will charge no interest on any purchases made during the 15 month promotional period.  But it's more common to have a time limit - for instance, no interest on any purchases made during the first 90 days or something like that.

Thank you so much, I don't want to make other purchases. I can definitely meet the terms regarding paying the right amount each month within the time. I just thought I must be missing something otherwise why would they give me basically a free loan?
Cheers

because they'll hope you use it and that earns them fees from the merchant. Credit card issuers make plenty of money of users whether they pay off in time or not

Ebe_Scrooge

Deleted_User said:

angwyn said:

Ebe_Scrooge said:

angwyn said:

Ebe_Scrooge said:

As esbanker says, with little or no previous credit history, the chances of being accepted for a 0% card are slim.  An "ordinary" card is well worthwhile if you can get one with a high enough credit limit, for the added protection it gives you (although do remember, the Section 75 protection offered by credit cards is no substitute for proper dedicated travel insurance - this really should be high on your list of priorities).

If you do decide to pay by card, and it's an ordinary interest-bearing card, then don't be planning to "pay it off gradually" - doing so will incur some fairly hefty interest charges.  By all means use it to buy the tickets, but pay it off in full when the statement arrives.

Thank you.
The one I've applied for is 0% on spending for 15 months.
Does that mean I can make multiple purchases over 15 months but pay the statement in full every month?
Or can I pay for my flight and then have 15 months to pay it back with 0% interest.
Many thanks for your input

Assuming your application is successful - then you'd buy the flight and pay it off over 15 months, with no interest.  Two important points to bear in mind.  Firstly, you absolutely must pay at least the minimum amount each month, on time.  If you don't, you'll have broken the terms & conditions, and the 0% offer will be revoked, and you'll start paying their standard APR.  Set up a Direct Debit to make sure you never forget.  Secondly, make sure you clear the balance at the end of the 15 month promotional period, otherwise any remaining balance will begin to attract interest at the card's standard APR.

In terms of making further purchases, you need to check the T&Cs carefully.  Some cards will charge no interest on any purchases made during the 15 month promotional period.  But it's more common to have a time limit - for instance, no interest on any purchases made during the first 90 days or something like that.

Thank you so much, I don't want to make other purchases. I can definitely meet the terms regarding paying the right amount each month within the time. I just thought I must be missing something otherwise why would they give me basically a free loan?
Cheers

because they'll hope you use it and that earns them fees from the merchant. Credit card issuers make plenty of money of users whether they pay off in time or not

This is actually more like the correct reason.  Yes, of course they make money from people who don't repay in full each month, and who pay interest.  But this is peanuts compared to their main source of income which, as Farfetch says, is the fee the retailer has to pay each time you use the card to pay them.  It's also the reason why some (usually small) retailers simply refuse to accept credit cards, because of the fees they get charged.

So once you've made use of your "free loan", if you then go on to use the card for everyday purchases, the card company will be (indirectly) making plenty of money from you - even if you personally pay nothing in interest.  It's also the reason why a card that's left unused for an extended period will usually be closed by the issuer - it costs them to keep your credit facility available, and if you're not generating any income for them, they'll usually close the card.