Sense-check for 0% purchase card

ircE

Hi all. I'm pretty sure I've got this right but I would like some reassurance since it's my first time with doing this sort of thing.

I recently successfully applied for the Nationwide Member credit card, specifically the All Rounder offer. It offers 0% on purchases and balance transfers for 15 months, as well as fee-free spending abroad. I was accepted for a credit limit of £3,000. I do not plan to use the balance transfer function as my only other credit card debt is my day-to-day spending which I fully repay every month from my salary.

The plan is to use the card for spending on holidays - both booking them while I'm here, and as a back-up card while I'm abroad. My first holiday is going to be a short break to Eastern Europe over Christmas (~ £400 in total). My next one, and the main reason I got the credit card, is going to be a longer break to South East Asia next spring for around 2 weeks (~ £1,500 in total). I haven't yet planned further holidays after next spring but will probably be using the card if I do, especially if it's within the 15 months, but leave that aside for now.

I have all the money saved up that I intend to use for booking both breaks in existing savings accounts. I.e I could just pay for it from my current cash savings if I wished.

I want to book everything for both breaks now on the card, and use my savings to pay back only the minimum payment every month for the first 14 months, until the 15th month, at which point I'll pay off the entire remainder - pocketing the resulting interest. 

Does this make sense as a way of using the card to maximise my net gain? Have I missed anything or misunderstood how it works?

Additionally, is there a way for me to exploit the 0% balance transfers?

Many thanks in advance.

molerat

Your understanding is correct.  You could also add other day to day spending on the card, pay off the minimum from your pay and put the remainder of that spend into the savings account to pay off the balance at the end of term.  You just need to be aware of the actual end date of the offer, it doesn't always correspond to a statement or other payment date.

NorwichMan

Check out "stoozing", including the mse article, for suggestions on optimising interest gains on 0% money from credit cards, including balance transfers and spending. 

ircE

molerat said:

Your understanding is correct.  You could also add other day to day spending on the card, pay off the minimum from your pay and put the remainder of that spend into the savings account to pay off the balance at the end of term.  You just need to be aware of the actual end date of the offer, it doesn't always correspond to a statement or other payment date.

Great, thanks. I'll give Nationwide a call at some point to double check when the 15th month ends and set a reminder to pay off the balance accordingly.

molerat

ircE said:

molerat said:

Your understanding is correct.  You could also add other day to day spending on the card, pay off the minimum from your pay and put the remainder of that spend into the savings account to pay off the balance at the end of term.  You just need to be aware of the actual end date of the offer, it doesn't always correspond to a statement or other payment date.

Great, thanks. I'll give Nationwide a call at some point to double check when the 15th month ends and set a reminder to pay off the balance accordingly.

Some cards will put the end date on statements, not sure if NW do as never been with them.

ircE

molerat said:

ircE said:

molerat said:

Your understanding is correct.  You could also add other day to day spending on the card, pay off the minimum from your pay and put the remainder of that spend into the savings account to pay off the balance at the end of term.  You just need to be aware of the actual end date of the offer, it doesn't always correspond to a statement or other payment date.

Great, thanks. I'll give Nationwide a call at some point to double check when the 15th month ends and set a reminder to pay off the balance accordingly.

Some cards will put the end date on statements, not sure if NW do as never been with them.

Good point, I'll wait until my first statement, might save me time from being on hold to customer service.

Nasqueron

ircE said:

molerat said:

ircE said:

molerat said:

Your understanding is correct.  You could also add other day to day spending on the card, pay off the minimum from your pay and put the remainder of that spend into the savings account to pay off the balance at the end of term.  You just need to be aware of the actual end date of the offer, it doesn't always correspond to a statement or other payment date.

Great, thanks. I'll give Nationwide a call at some point to double check when the 15th month ends and set a reminder to pay off the balance accordingly.

Some cards will put the end date on statements, not sure if NW do as never been with them.

Good point, I'll wait until my first statement, might save me time from being on hold to customer service.

NatWest do put the end date on the statement (at least for the BT card I have) - it's at the bottom, says "promotional rates" with your end date