Newbie Question

Gruff_Mckenzie

I've never had a credit card before and have just got my first yesterday so am starting the slow stooze at present.

I just want clarification of finer vocab points.

If I pay of a bill (in this case a water bill) with my CC does this counts as a 'purchase' or a 'transaction' and does it amount to the same thing considering the 0% interest: I won't get charged because it's not 'buying' something?

Thanks, I just don't want to make a silly mistake with anything.

MissEyre

I would avoid paying bills with your credit card-I think it is considered a cash advance if you do this, and so wouldn't qualify for the 0% deal. Am happy to be corrected by the experts on here though! x

belfastgirl23

** bump** I'm wondering about this too....

edit - it appears this is right, see this thread
http://forums.moneysavingexpert.com/showthread.html?t=774799

NickX

I have paid utility bills on a CC before now and they have been simply processed as purchases - check with the CC company card beforehand to be sure.

Gruff_Mckenzie

Well I just phoned the CC (again) and my bill payments will be fine.
The Card is a Tesco one. I'm still a bit peeved that because it's 0% on all purchases for 3 months and 0% on all Tesco purchases for 3 Months I have to pay the whole balance after three months. I wouldn't have really known this except for a couple of nagging doubts that prompted me to ask.

When I just spoke to the woman on the phone it sounded like the same would be true if I had put any Balance Transfers on the card (also 0% 13mnths). Surely this can't be the case, can it?:huh:

Cheers

Wyndham

Gruff_Mckenzie wrote: »

Well I just phoned the CC (again) and my bill payments will be fine.
The Card is a Tesco one. I'm still a bit peeved that because it's 0% on all purchases for 3 months and 0% on all Tesco purchases for 3 Months I have to pay the whole balance after three months. I wouldn't have really known this except for a couple of nagging doubts that prompted me to ask.

Well, you can leave the balance there, but it won't be 0%, it will go to whatever the interest rate is so I'm not recommending it, but the 0% is only for 3 months.

Gruff_Mckenzie wrote: »

When I just spoke to the woman on the phone it sounded like the same would be true if I had put any Balance Transfers on the card (also 0% 13mnths). Surely this can't be the case, can it?:huh:

If balance transfers are 13 months then you have 0% for 13 months on that, but if you've already spent on the card it gets complex and difficult to stooze. I'd advise not to do both on the same card.

I should stress that I'm not talking from knowing the specific terms and conditions of your card, just basing it on what you've said.

Gruff_Mckenzie

Wyndham wrote: »

Well, you can leave the balance there, but it won't be 0%, it will go to whatever the interest rate is so I'm not recommending it, but the 0% is only for 3 months.



If balance transfers are 13 months then you have 0% for 13 months on that, but if you've already spent on the card it gets complex and difficult to stooze. I'd advise not to do both on the same card.

I should stress that I'm not talking from knowing the specific terms and conditions of your card, just basing it on what you've said.

I'm only using it it for a slow spending stooze and don't have any balance transfers there but it is something I've learnt for the future.

NickX

Gruff_Mckenzie wrote: »

Well I just phoned the CC (again) and my bill payments will be fine.
The Card is a Tesco one. I'm still a bit peeved that because it's 0% on all purchases for 3 months and 0% on all Tesco purchases for 3 Months I have to pay the whole balance after three months. I wouldn't have really known this except for a couple of nagging doubts that prompted me to ask.

When I just spoke to the woman on the phone it sounded like the same would be true if I had put any Balance Transfers on the card (also 0% 13mnths). Surely this can't be the case, can it?:huh:

Cheers

This is where the credit card companies are complete Bar Stewards !!! Also why Martin suggests that you keep Balance Transfer cards separate from Spending Cards. Basically they want to keep the Ballance Transfer and the Spending promotional rate deals separate so that you end up with a balance that is trapped and that you HAVE to interest on. Only by very careful planning can you avoid it. I would say that you should keep the two separate unless its very carefully thought out. But do think about these poor Credit Card companies, they are loosing millions to the stoozers who are simply utilising 0% deals to their own ends - they got to make the cash back somewhere !!

CannyJock

Gruff_Mckenzie wrote: »

I'm only using it it for a slow spending stooze and don't have any balance transfers there but it is something I've learnt for the future.

I'm using the HSBC card for my 0% purchases at the moment - 12 months at 0% and stooze my own cash. Once you clear the Tesco card in a couple of months, might be worth looking into it.