From: "MrCheerful" 
Newsgroups: uk.finance
Subject: Re: Credit Card Cheques 0% interest for 6 months
Date: Tue, 03 Jul 2007 09:16:09 GMT
Bytes: 2358


"Tim Rogers"  wrote in message 
news:5elblsF38bdp3U1@mid.individual.net...
> Every now and then I get some credit card cheques from Lloyds TSB. Got 
> some the other day and the offer was 0% interest for 6 months albeit with 
> a 3% handling fee.
>
> Therefore if I write a cheque for £500 then I'll only pay £15 initial fee 
> (on which interest is payable)
>
> Now what interests me is this. I am the sort of person who pays his credit 
> card bill off in full every month usually about £1000???
>
> If I write a cheque for £500 then do my usual spend of £1000 then I should 
> get a bill for £1500 + £15 for writing a cheque.
>
> Now if I pay my bill off as normal say I pay £1020 (£1000 for my normal 
> bill and £20 to cover the £15 admin + interest) then what will my next 
> months bill be?
>
> 1. Will it be £500 with no interest
>
> 2. £500 + Interest on the £1000 from the previous month because I didn't 
> pay off the bill in full??
>
> More interested rather than have a proposal to use these cheques?
>
> Tim

On the back of the statement there is usually an explanation of how the 
payments are applied.  The general rule is to never spend (purchases) on a 
card with a zero BT deal, as it usually means that you lose.