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If a credit card deal has 0% on purchases for 12 months, does that mean that I will accrue no interest in that period and I can spend up to the credit limit just paying the minimum payment amount
Yes, that's how it works. They're gambling on you forgetting or being unable to pay it off after the 12 months.
Nick.Earthloop
@hugo7
Probably a stupid question, but I just wanted to write it out and have someone double check my understanding.
If a credit card deal has 0% on purchases for 12 months, does that mean that I will accrue no interest in that period and I can spend up to the credit limit just paying the minimum payment amount.
ie
Credit Limit = £1,000
Minimum payment = £10
Interest = 0% for 12 months
I make purchases of £1,000 on day one. Each month up to and including month 10 I repay the minimum payment:
10 X 10 = 100
1,000 less 100 = 900
On month 11 I repay £900.
Month 12 I have £0 owing. Therefore there are no extra charges.
Basically I think that I might need a sort of bridging loan in the next 1-6 months to cover purchases and thought a 0% credit card would be the cheapest way of doing it rather than taking money from savings.
Cheers.