Credit card interest

[Clarkvcr]

Is a period of 0% on credit card purchases any good if you don't pay off the full balance.
eg: balance of £2000 a transfer rate interest of 0.5%/month.
If I purchased a TV at £1000 and was offered 0% on purchases for 10 month, how would the company take my monthly payments off, and would the telly ever be paid off before other balance.
Cheers.

[Wicked_and_Crazy]

Depends what the offer is. IF its 0% an purchases for a period of time then its as it says.

If its 0% on balance transfers then generally they work on the basis that if you pay any money into the account, the amount comes off of the the transfered amount first. Therefore you get charged interest on the items youve purchased since the transfer took place.

I've used these facilities before, i had a 0% on puchases for 9 months, so i maxed that out in 6 months and then applied for a card that had 0% on balance transfers for 9 months and transfered the balance but then didnt use the second card at all. I just let it sit there and then paid it off in month 9. You can make money doing this but you have to be careful as one slip and you get an interest payment which wipes out all of your profits, and to make the profits you obvioulsy have to keep the cash youve spent in a savings account to make it earn for you.

[brundles]

Without more details on the offer in question it's difficult to be sure of how this would end up.

If it's a 0% credit offering over 10 months you sign up for when you buy the TV then typically they are 0% for 10 months and then if you don't pay the balance to clear it you get hit with a high interest rate for a continued period of (for example) another 26 months taking the overall credit offering to 3 years.

If it's a credit card it's going on to then your payments go first towards interest accrued during that billing period (if any) then on to the oldest debt. So if you have £2,000 on the card first and put the £1,000 for the TV on it then all payments for that first 10 months would go towards the £2,000 - unless you paid more than that off.

Hope this helps

[Clarkvcr]

Got it, I think.
£1000 0% purchase would sit in the account without accruing interest while I try and whittle down the £2000 balance. If I did that in less than 10 month I would start paying off the telly purchase. Okay if it can all be done in ten month for after that the telly would go onto standard rate purchas of about 20%. (the £2000 is a low rate balance transfer deal)
Difficult to explain, I know.
They'll get us one way or another!
Cheers.

[LSainsbury]

£2000 for a TV??? Must be a monster - or they saw you coming.....

[Acathla]

Even though you will be on an interest free period, you will still have to meet your monthly payments, usually around 3%-5% of the balance. If you had to pay 3% for minimum monthly payments, your first payment would be £60, then £58.20, etc, etc

If you were on 12 months interest free, and you met all your minimum payments on a 3% minimum repayment plan, your balance would be around £1,430.

if my maths is correct ;)

---------- Post added at 10:53 ---------- Previous post was at 10:41 ----------

i just re-read what you were asking - ignore my sillyness :(

[Clarkvcr]

LSainsbury,
£1000 for the tv, the 2k is an existing balance. and the figures were examples only.
I don't know people with 2k tellys.
As others on he forum may know I've bored the **** of them asking about tellys in the £500 to £700 brcket.
While you'r reading this, Samsung LE-32R87BDX, what do you think.
Cheers

[Nidge]

Is a period of 0% on credit card purchases any good if you don't pay off the full balance.
eg: balance of £2000 a transfer rate interest of 0.5%/month.
If I purchased a TV at £1000 and was offered 0% on purchases for 10 month, how would the company take my monthly payments off, and would the telly ever be paid off before other balance.
Cheers.

Why not ask the shop if they do interest free for 12 months like what's been mentioned above, when the 12 months are up just pay it off, it save all the hassle with the credit card.