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how do they work

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axlandslash44x
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2006/07/15 14:52:08 (permalink)
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how do they work

credit cards

i have an application form for nationwide

its 0% for first 9 months

see i thought this meant i could spend up to my limit.. and not pay a penny untill my 9 months up... then i could simply transfer the balance to andother company offering 0%

i take it im very wrong
#1

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    axlandslash44x
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    RE: how do they work 2006/07/15 14:54:11 (permalink)
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    form reading ther terms

    it looks like i have to pay minimum payment every month... even in the 9 months... which is about 5 quid...

    then after this im going to be paying the 5 quid.. but interest will be added

    basically i plan on spending 2k... not paying a penny for 9 months... (but saving in a different account....) then after 9 months swich it to another comapny with 0% for a furhter year... then after that year.. ill have the 2k to pay it all off

    is this not possible

    god i work for a finacncial company.. im terrible ha
    #2
    Play
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    RE: how do they work 2006/07/15 14:58:58 (permalink)
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    Thats right mate you can do that . I was doing it , they plan on you using it after the 9th month.

    I transfered my balance over to them and cut the card up straight away and paid it off in 9 month. When card was renewed after a year i started using it for some reason
    #3
    axlandslash44x
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    RE: how do they work 2006/07/15 15:11:10 (permalink)
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    but what im saying is

    can i get the card.. use it.. not pay them anything what so ever for the 9 months?
    #4
    TRAMP
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    RE: how do they work 2006/07/15 15:13:35 (permalink)
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    I think you still have to pay each month, just no interest. If you don't pay the monthly payment you will end up getting CCJs
    post edited by description - 2006/07/15 15:14:35
    #5
    Jax Demon
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    RE: how do they work 2006/07/15 15:14:08 (permalink)
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    you will have to pay the min each month
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    PartyBoy
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    RE: how do they work 2006/07/15 15:15:36 (permalink)
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    You still have to pay a minimum payment each month - say 3-5% £5 minimum. But that payment of course comes off your oweing balance. So yeah, apart from this small repayment you don't have to pay it back until nearing the end of the free period.

    However, if you wish to transfer the debt onto a new 0% deal, the new card provider will likely charge you 2% at the outset. This 2% over 9 months (so roughly 3% over a year is still sh1t loads cheaper than raising funds on a traditional loan.

    #7
    axlandslash44x
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    RE: how do they work 2006/07/15 15:18:02 (permalink)
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    ok so it said 3 percent of the balance every month minimum

    so say balance is 1800

    im lookin at 54 a month minimum... i guess it goes down after time as the balance goes..

    and this 54 wouldnt be paying of the interest coz there is none.. it wud be taken of the balance?
    #8
    PartyBoy
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    RE: how do they work 2006/07/15 15:21:48 (permalink)
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    yes

    #9
    woot
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    RE: how do they work 2006/07/15 15:47:47 (permalink)
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    Your right lots of people transfer balances to avoid having to pay interest but CC companies are now often charging a 2% balance transfer fee to make it less beneficial.

    Even if you don't pay a credit card company money on interest (by transferring balances all the time) they still make money from the Retailers. They charge anything from 0.5% to 2.75% for each transaction made.
    #10
    axlandslash44x
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    RE: how do they work 2006/07/15 15:57:20 (permalink)
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    do u mean that some of them are now saying .. if you transfer.. you have to pay 2percent interest every month>
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    Stone
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    RE: how do they work 2006/07/15 16:04:28 (permalink)
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    I remember a guy who done this at my old workplace, this was about 3-4 years ago. I heard from one of his other friends that his credit rating has lowered but not sure if its right.

    Hazard a touch of narcissism without shame.
    There is no room for junk food in any diet whatsoever, leave the junk in the bin.
    #12
    woot
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    RE: how do they work 2006/07/15 16:08:29 (permalink)
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    ORIGINAL: axlandslash44x

    do u mean that some of them are now saying .. if you transfer.. you have to pay 2percent interest every month>



    No I mean they charge you for transferring a balance - normally 2% of that balance.

    Say Card 1 is about to start charging interest so I get a new card (card 2).
    When I ask Card 2 to take on my balance they take the debt and add an extra 2% on top of that.

    For example:£2,000 balance will be a £40 charge.
    #13
    woot
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    RE: how do they work 2006/07/15 16:09:44 (permalink)
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    That £40 is a one-off charge
    #14
    axlandslash44x
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    RE: how do they work 2006/07/15 16:48:59 (permalink)
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    aaa i see

    not so bad then

    thanks fellas
    #15
    jess1eb
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    RE: how do they work 2006/07/15 18:10:34 (permalink)
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    the o% will only be for ballance transfers and perhaps purchases. they will charge you as normal for cash advances so stopping you from saving the money and earning the interest.
    #16
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