New Credit Card Barclaycard

krippo

Hello everyone!

I’m new to credit cards and have a few questions. I’ve come across a Barclays card that offers up to 22 months interest-free, and I’m wondering about the best way to use it.

1. Can I use this card to pay for building service charges, car insurance, or even council tax?
2. Besides everyday purchases and airline tickets, what other expenses make sense to pay with this card to maximize its benefits?

Also, as I understand, if I pay the minimum amount due each month, the 22-month interest-free period remains intact. Am I correct?

Thank you in advance for your advice! 😊

TadleyBaggie

Yes, assuming this is a purchase 0% card. Be aware that with some cards, the purchases have to be made within a short time of opening (e.g. 60 days).

Brie

Not sure you can pay council tax with a credit card.  Have you checked with your council if this is an option?  If yes then great!  But as Tadley says this is assuming it's a 0% on purchases.  So it would work on anything you can normally purchase on a CC.  Car insurance for sure.  Not sure about your building charges.

What you use it for depends on the exact T&Cs.  So my guess is that it will be a 0% on purchases for maybe 3 months and then interest free continuing on that for the remaining 19 months.  On this basis it's best to do big value items - your full year of car insurance, your big holiday and then your daily spending to the end of the 3 month period.

After the end of the 3 months it's likely that you will be charged full interest from day 1 of any new purchases because the T&Cs likely say that's what happens when you haven't cleared your balance in full from the previous statement.   So after 3 months you need a different card or go back to using your debit card or cash.

DO set up a DD for the minimum amount because missing a payment will mean interest will be charged from that point.  Better yet set up a DD for a bit above the minimum as it means you look like a better money manager and clears the balance a bit quicker.  So if your minimum payment is £49, set your DD for £50.  That also helps you with budgeting as you know how much that bill will be every month.

Brie

If the offer is for money transfers then that would mean transfering a large amount to your bank account and paying bills from there. 

If the offer is for balance transfers then that's assuming you have a balance on another credit card that you want to move to 0%.

All the other things about spending & DDs apply.