How does 0% Credit Card work?
I am looking at getting a credit card now, just to tie up some loose ends on a house i am moving out of. Shouldn’t be much over £150. With the 0% interest for 6 months on a credit card for exmaple, does this mean i have twelve months before i have to pay any money, or will there be minimum payments? I intend to have the money by the end of the month (25th June).
I am very confused about how to deal with money on cards of this description.
Thanks
This will be for purchases only, not balance transfers.
There are minimum payments on 0% RATE. Notice in your text you said the deal was for 6 months. You would need to make the minimum payments for the 5 months and pay off the balance before the 6 months to get the 0% rate. Otherwise you will be subjected to an interest rate payment. Depending upon how the agreement reads the interest may start at the time of the first transaction 6 months back!
Used wisely the 0% rate might work but read the agreement carefully. Most are based on balance transfers and there is a 3 to 5% finance fee up front. So it really isn’t 0%.