You pay no interest on your accumulating balance until one day after the interest free period ends. You then pay interest on the outstanding balance.

Check when your interest free period actually ends by phoning your cc company if you are not absolutely sure. The reason is

1 January 2007 your interest free period starts. That is also month one. 1 February is month two.

In the real world month one is 1 February.

Hi,

I am new to the forum and am after some advice/guidance on purchasing a car with a 0% on purchases credit card.

The car is for sale for £5895 and I have about £4000 cash that I can pay off the card immediately. I am hoping to knock the seller down to £5500 which would leave £1500 outstanding on the credit card.

My current car is worth (according to parkers.co.uk) between £985 (poor condition: private) and £1450 (good condition : private). I reckon it's somewhere in between, so call that £1200, so I'd have about £300 left to pay on the credit card.

I can afford to pay about £70 a month back onto the credit card. So in theory the card would be clear in about 4 months, well before the 12 month 0% period on the card I am looking at expires.

Does this sound about right!?

Also does the 0% on purchases mean there'd be no interest to pay on the outstanding £300, as this bit confuses me!?

Any help/advice greatly appreciated!!!