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Forums Payment cards Other payment cards 0% interest – testing my theory

  • DTR 114 posts

    Hello all

    I have a 0% card until the end of next year. I’ve almost maxed the spend at around 10k and have a direct debit to pay the minimum – 2.5% a month – meaning £250 goes to pay it.

    I’d rather keep the full 10k on there. I will be able to pay it off, but would like to keep the max on there as long as possible.

    Can I just put another £250 a month of spend on there, which the minimum payment will then cover, and then keep the balance at a standstill? The rules say the highest interest purchase get paid off first, so surely that means as long as the payment covers the additional spend, and I don’t go over my limit, I can in effect keep the balance stationary?

    Could someone please check my logic and tell me if you can think of anything I might have missed?!

    Has anyone done similar?

    Thanks in advance

    Rui N. 877 posts

    Yes, as long as the 0% promo is still running you can do that.
    Just need to make sure the actual promotion period to make the purchases was not a smaller period (eg 3 or 6 months) than the full period where you don’t pay interest.

    DTR 114 posts

    Ah – the 0% period has finished… And I’d forgotten that, of course, any purchase would immediately be subject to the interest rate as I’ve not paid the balance of in full. So no can do. Thanks!

    ee 49 posts

    For cards with a shorter purchase promotional period I cut the top corner off as a physical reminder not to use the card!

    AndrewT 170 posts

    Sounds a bit unnecessarily drastic. Most cards can be frozen these days, or simply keep them in a different drawer.

    BA Flyer IHG Stayer 2,355 posts

    For cards with a shorter purchase promotional period I cut the top corner off as a physical reminder not to use the card!

    Which really isn’t a good idea.

    An in person retailer could regard the card as damaged and some may refuse it or even retain it when you do come to use it.

    janed9388 64 posts

    Ah – the 0% period has finished… And I’d forgotten that, of course, any purchase would immediately be subject to the interest rate as I’ve not paid the balance of in full. So no can do. Thanks!

    But the repayment SHOULD go to paying off the purchase first before the interest free loan, so your interest free balance won’t reduce.

    MF176 206 posts

    How do I cut the corner off a card in my Apple wallet?

    I joke, but who still uses physical cards!?

    BA Flyer IHG Stayer 2,355 posts

    I do!

    AndrewT 170 posts

    Why would you put a card you don’t want to use in your wallet (of any type) in the first place?

    While mobile payments are undoubtedly increasing rapidly, simple observation in any shop shows that most people use physical cards.

    BA Flyer IHG Stayer 2,355 posts

    Indeed it’s an accident waiting to happen.

    You stop spending to delay generating say a 2-4-1 voucher or triggering a cash back offer yet inadvertently take the card out pay for some shopping and oops you’ve got your voucher 6 months too soon etc

    Even @Rob says he puts cards in a drawer to prevent that happening.

    JDB 4,802 posts

    How do I cut the corner off a card in my Apple wallet?

    I joke, but who still uses physical cards!?

    Physical cards are still widely and sensibly carried by young and old! What are you going to do if you lose your mobile or it’s stolen and may have your train ticket home as well as all your cards. I’m surprised that some people keep their cards in a case with the mobile.

    I find that sometimes card machines don’t like Apple Pay and a physical card works fine. It helps you remember your PIN if you use it from time to time. In some countries contactless/Apple Pay isn’t that commonplace. In China, if you use a physical card or even Apple Pay, they consider that seriously primitive.

    John 1,084 posts

    Once the promo period is over there’s no reason to use the card again so I don’t see what the problem with cutting it up is.

    DTR 114 posts

    True, but I’d be paying interest before the minimum payment left…or trying to time things which would be tricky. Which I feel would kind of defeat the object for me.

    (In response to janed988)

    Rui N. 877 posts

    How do I cut the corner off a card in my Apple wallet?

    I joke, but who still uses physical cards!?

    I do.

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