Credit card advice please.

[Clare85 11]

Sorry to sound dumb but I have never dreamt of having a credit card before, or even thought of it.

 

I want to buy something for £700. I don't have £700. Someone told me a credit card is the best option, then I can pay back when I can (with a monthly minumum payment) with no interest like you would have if you got a loan.

 

So I'm looking now....there is 0% this, 0% that, but then it says something about interest on balance transfers? Huh so it is not 0%? Ooooh too confusing, help! I was looking at an M&S one recommended on Moneysavingexpert.

 

Thank you!

[Andy 10]

What you're looking for is a card which offers 0% on purchases for, say, six months.

 

Normally with a credit card you have to pay the balance off in full when you receive your statement otherwise you'll be charged interest. Sometimes credit card companies do special promotions for new customers where you pay 0% on purchases for a set period. This means so long as you repay the £700 back before the promotional period ends you won't pay interest.

 

You can ignore balance transfers - a balance transfer means transferring money you owe on one card to another. Again sometimes companies will let customers do this as a special promotion, but as you don't have a balance it won't help you.

 

Just be sure you fully understand the terms, that you make at least the minimum payment each month (otherwise you'll be charged fees and probably lose your 0% promotional deal) and be sure you pay enough each month to have the £700 cleared before the promotional period ends.

 

I'm can't comment on individual cards but I would stress that you must make sure you understand the rules before you make the purchase.

[Guest sibon]

You could have a look at these deals to see whether anything suits.

 

If youy take a 16 month 0% deal to buy your £700 item, you will need to repay about £50 per month to pay it off without any interest. Do be careful though, if you keep on using the card for other stuff, it will cost you quite a lot of interest.

 

Make sure that you understand the terms before taking on the debt and have a firm plan to pay the money back.

[dvp82 10]

Quite a few credit cards out at the minute doing between 12 - 15 months interest free on purchases. So it's just like getting a interest free loan. Tesco credit card are currently offering 16 months interest free on purchases.

 

Just as the other poster said read and understand the T&C's. There will most likely be clauses like if you miss or are late with a monthly payment within the interest free period, the interest free period will end and you will start to get charged interest.

[Jeffrey Shaw 90]

Yes. Most cards have similar terms and conditions. Some have additional benefits- e.g. Capital One gives annual cashback on purchases (@0.5%) and Nectar/Tesco cards give points.

[Leah-Lacie 10]

I got a credit card about 18 months ago, with a £600 limit. It had 0% on purchases as long as I cleared the balance of said purchase within 56 days or something (8 weeks) then I got charged interest. I didn't pay within the time limit, and now I pay about £16 each month to clear it off, including interest, and to be honest, I haven't used the card again and have no idea what the current balance is. I shall check and post back. Interest is something ridiculous like 29% APR though.

[Jeffrey Shaw 90]

So it's always best to clear the outstanding balance in full each month, as most c/cards then charge 0%.

[Leah-Lacie 10]

So it's always best to clear the outstanding balance in full each month, as most c/cards then charge 0%.

 

I agree thats always the best way - But if the OP is going to buy something at £700, and they can't afford to buy it , they won't be able to afford to pay the balance off in a month. They need to find a card with a long 0% on purchases offer, more than a month or 2. preferably at least 6 months.

[Jeffrey Shaw 90]

That's true, too.

And anyone who trips-up and pays late (or not at all) stores up one black mark on his/her credit file.

[Leah-Lacie 10]

That's true, too.

And anyone who trips-up and pays late (or not at all) stores up one black mark on his/her credit file.

 

Mine's paid via DD every month, at £16 which I can handle, just not sure how quickly the balance is getting cleared! I'm trying to find latest bill now, I can't check online any more - It was a PayPal Santander card and they've stopped doing them, and my online account doesn't work.

[dvp82 10]

I got a credit card about 18 months ago, with a £600 limit. It had 0% on purchases as long as I cleared the balance of said purchase within 56 days or something (8 weeks) then I got charged interest. I didn't pay within the time limit, and now I pay about £16 each month to clear it off, including interest, and to be honest, I haven't used the card again and have no idea what the current balance is. I shall check and post back. Interest is something ridiculous like 29% APR though.

 

Most if not all credit cards are interest free if you clear the balance off every statement. A credit card with a APR as high as 29 is ridiculously expensive if you carry any sort of balance over each month.

 

The OP is wanting a credit card that is interest free even if you carry a balance over each statement, which as I posted there are several cards out with offers of 12+ months interest free periods.

[Leah-Lacie 10]

Just found a bill, my limit was actullay £650, and the cards been defunct since about March. I think I got it last April and used it to buy a new pram and other baby stuff, maxing it out. I've paid £16 a month since, and according to latest bill, I still owe £560 on it, this months bill of £16 includes £10 in interest, so the balance is clearing VERY slowly. I'll maybe start making bigger payments on it actually!