Credit card question

(5 Posts)
Feellikearightungreatfulcow Sun 07-Aug-16 22:18:22

OK so I have had 2 credit cards ever, each time using the 0% period to 'borrow' a (rental) house deposit and then pay it back when the old deposit is returned.

I have never bought things on a credit card. I say this only to indicate my little knowledge about the 'day to day' rates and charges, as have never used it regularly

I have a balance on my credit card at present which is 0% until March 17. I pay a dd monthly to get this cleared by end of year.

I also have a 0% deal on cash/balance transfers until the end of 2017/beginning 2018 (will check exact details before making decision) and am considering borrowing a few hundred more on cc which will be interest free (except 2.5/3% fee of course) for some costs which I will definitely be able to repay in oct/Nov pay packet.

If I borrow say £300 and then pay off £300 when I'm paid in October, will the remaining balance 0% deal end in march 17, except the £300 which I will have until end 2017/early 2018 to repay (at 0%) - is that correct?

Obviously I'll check with cc company but they are not open until tomorrow and am playing with figures on spreadsheet now

I guess its because it seems as long as I have the limit left on my card (currently only using about 15%) it seems an 'easy way to extend 0% deadline' for much longer
I mean I'm not doing it for that, just short term borrowing, but I guess they don't care as they still get the 2.5/3% transfer fee, and I guess if I kept doing it to extend when I repay by they would stop offering the 0% rates

DISCLAIMER - I don't intend to take over a year to repay it, I'm just considering how it works so used actual dates as an example of the earlier/later deadline

monkeysox Sun 07-Aug-16 22:41:12

The payments get allocated to the 0% bit first though so be careful.

Think I understand what you mean.

SomedayBaby Sun 07-Aug-16 22:42:27

I have a balance on my credit card at present which is 0% until March 17

That will stay at 0% until March 17, regardless of what else you put on the card.

I also have a 0% deal on cash/balance transfers until the end of 2017/beginning 2018

So yes, you're right - if you transfer £300 to the cc now (or spend £300 cash), you'll have until the end of 2017/beginning 2018 to pay it off with 0% interest - your pre-existing balance will continue as interest free until March 17.

Fluffsnuts Sun 07-Aug-16 22:43:40

Read the small print. Most cards ensure any payments pay off the cheapest balance first, so that you pay interest back as quickly as possible.

Also bear in mind that whilst some credit risk is a good thing, taking out credit/ loans etc can negatively affect your credit rating.

Feellikearightungreatfulcow Sun 07-Aug-16 23:14:48

The payments get allocated to the 0% bit first though so be careful.

Both bits are 0% though, that's what is confusing me slightly, just the current balance 0% ends before the ' new balances ' iyswim

Most cards ensure any payments pay off the cheapest balance first, so that you pay interest back as quickly as possible.

This is why i just wanted to check the order it's paid off, in case the equivalent was to pay off the 'new balance' (0% til 17/18) before the existing balance (0% til Mar 17) for the same reason, so they can charge interest sooner (in the event of me not clearing the full balance by March 17)

Thanks for the tips re borrowing too. Am mid 30s and struggled when I first wanted a credit card as I had wrongly assumed it was a good thing to have never had one when I was younger, when in fact I'd have been better having had one and repaid regularly

Will check with bank and t&cs.

Wouldn't normally borrow on it but had unexpected household costs which I can repay from what I would ordinarily 'save' in October/November pay (august/September 'savings' are earmarked hence short term borrowing on cc)

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now