We need a new car. I've got savings which could pay for the car but they're currently in a share scheme that is doing very well and predicted to do even better going forward. I can sell them at any time but I'd rather not at the moment.
My credit card has an offer on at the moment of a 0% cash transfer for 18 months. There is a fee, 1.9% but otherwise it's interest free. The card currently had a zero balance. So I'm thinking of just transferring what I need for the car (nothing wildly expensive, about 5k) and using this to buy the car. I'll then set up a direct debit so it'll be cleared at the end of the 18 months.
It seems really simple and sensible to me but I've a habit of thinking that about things and then realising (too late!) that I'd missed a vital point. So sorry if I'm being really thick!
Can't see a problem if you're happy to pay the fee but might be cheaper to get a new credit card with 0% on purchases and save the fee - assuming you're buying a car from somewhere that accepts credit cards?
Apart from the annual fixed fee our credit cards are free to use if paid off in full on 15th of the following month so realistically they give us between 15 and 45 days' free money. In times of short term cash flow problems we have put decreasing monthly amounts on the cards until we were back to normal.
Absolutely fine OP as long as you're clear what you're doing... BUT we've all heard the stories of spiralling debt due to pure bad luck.
I kept seeing adverts for car finance at 7 or 8% so I thought I must he missing something but I guess not everyone gets the same offers on cards and some people pay ££££s for cars so maybe would be outside Cc limits (I'm not a car person so something cheap and reliable that I can fit the dog in will do fine for me!)
So long as you are sensible and not the type to dip into the CC again before it's paid off, credit cards on 0% are the best kinda debt because there's no charge for overpaying or paying it off early, but likewise if you have a tight month you can drop back to minimum payment. If you can trust yourself to stick to the repayments its basically a free loan!
There is no catch! they make their money from people who aren't sensible and don't pay it off before the 0% rate ends.