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Buying big items on a credit card interest free
batvink
Posts: 129 Forumite
I posted this on another thread, but I think it's worth posting in a more general area.
If you want to buy a large item on a credit card, you will generally find that they will charge a 2 - 3% fee, effectively passing on the cost of the credit card company fees. There is a nifty way around this if you are prepared to wait a while for your purchase. I did it with a car, which has a natural waiting time, so it worked well.
This isn't anything new. If you read this site, you already know this trick. This is just thinking laterally to extend the tricks a little bit further.
Get a card that offers an interest free period, preferably 12 months or more.
Do your normal spending on it for a month or two before you make your purchase.
Use the cash in the bank that is required to pay the credit card off to pay for the purcahse via switch / cheque / cash, without the 2% fee of a credit card.
Repay yourself into a savings account for the length of the interest free period.
Voila - credit card payment for a vehicle or other large purchase - no interest or fees!
As is always recommended, I would set up a standing order into your savings account to make sure you have the cash when the card needs to be paid off.
I hope this helps somebody somewhere - I have a nice shiny new car by giving myself an interest free loan :T It gave me so much more bargaining power too.
If you want to buy a large item on a credit card, you will generally find that they will charge a 2 - 3% fee, effectively passing on the cost of the credit card company fees. There is a nifty way around this if you are prepared to wait a while for your purchase. I did it with a car, which has a natural waiting time, so it worked well.
This isn't anything new. If you read this site, you already know this trick. This is just thinking laterally to extend the tricks a little bit further.
Get a card that offers an interest free period, preferably 12 months or more.
Do your normal spending on it for a month or two before you make your purchase.
Use the cash in the bank that is required to pay the credit card off to pay for the purcahse via switch / cheque / cash, without the 2% fee of a credit card.
Repay yourself into a savings account for the length of the interest free period.
Voila - credit card payment for a vehicle or other large purchase - no interest or fees!
As is always recommended, I would set up a standing order into your savings account to make sure you have the cash when the card needs to be paid off.
I hope this helps somebody somewhere - I have a nice shiny new car by giving myself an interest free loan :T It gave me so much more bargaining power too.
Thanks in advance,
Steve V
Steve V
0
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