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How does interest free credit for first 6 months work with credit cards?

  • 30-09-2014 6:17pm
    #1
    thewheel2.0
    Registered Users, Registered Users 2 Posts: 1,066 ✭✭✭


    I'm considering getting a credit card and availing of 6-8 months of interest free credit on purchases.

    Can you sign up for a credit card and put approx €700 on it and pay it back in 6 months with no "cost of loan"? Is this possible or will there be charges like "Late payment fees" and other hidden charges (aside from government duty)?

    Edit: Also does this screw up my credit rating? How serious does this get?


Comments

  • #2
    jameshayes
    Registered Users, Registered Users 2 Posts: 3,772 ✭✭✭jameshayes


    Yes, you can do that - and that is what the CC want you to do in hope that you will remain a customer past the 6 months and pay them interest on amounts not repaid.

    Its not ideal because the huge temptation to spend the 'free money'.. unless you have a huge amount of self control that is.. but its a dangerous game to play with.. at the end of the month you'll find yourself with no money and instead of just staying in one night you'll say, 'ah sure, I've space on the card, I can just use that'


  • #3
    Padraig Mor
    Registered Users, Registered Users 2 Posts: 9,610 ✭✭✭Padraig Mor


    thewheel2.0 wrote: »
    Can you sign up for a credit card and put approx €700 on it and pay it back in 6 months with no "cost of loan"? Is this possible or will there be charges like "Late payment fees" and other hidden charges (aside from government duty)?
    ?

    No. You will still have to make the minimum payments to the card - usually 2.5 - 5% of the balance per month. You will get charged the usual fees if you do not make these. It's not clear from your post, but if you plan on doing a balance transfer at 0%, just watch the T+Cs, because any purcahses you subsequently make may be charged interest until you clear off the balance transfer.


  • #4
    thewheel2.0
    Registered Users, Registered Users 2 Posts: 1,066 ✭✭✭thewheel2.0


    Padraig Mor wrote: »
    No. You will still have to make the minimum payments to the card - usually 2.5 - 5% of the balance per month. You will get charged the usual fees if you do not make these. It's not clear from your post, but if you plan on doing a balance transfer at 0%, just watch the T+Cs, because any purcahses you subsequently make may be charged interest until you clear off the balance transfer.

    No it's my first card so no balance to transfer. I have no idea how credit cards work...


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