akashgoswami_’s Twitter Archive—№ 4,725

0% CREDIT CARDS EXPLAINED ✨ 💸 ✨ Here's a rundown of what 0% credit cards are and how you can use them to your advantage! THREAD BELOW 🧵
On twitter.com ♻️ 3 Retweets ❤️ 2 Favorites 2021 Jun 2 Mood +4 🙂

…in reply to @akashgoswami_
What is a 0% credit card? 0% credit cards give you a larger time frame to pay back your balance without paying any interest You've likely already seen this with Buy Now, Pay Later schemes This is useful for large purchases but there are also some things to be aware of like...
Permalink On twitter.com 2021 Jun 2 Mood +3 🙂

…in reply to @akashgoswami_
The number of interest-free months you get 📆 It varies but usually, it's between 6-24 months You need to pay at least the monthly minimum every month & if you don't, you'll have to pay a missed/late payment fee ⚠️ Warning - You will ALWAYS pay interest on cash withdrawals
Permalink On twitter.com 2021 Jun 2 Mood -2 🙁

…in reply to @akashgoswami_
Here's an example ✨ You spend £1000 on a 6 month 0% credit card, pay off £300 and have a balance of £700 left to pay off at the end of the 6-month interest-free period Interest would start accruing on the remaining £700 in the 7th month at the card's interest rate (APR) is 📈
Permalink On twitter.com 2021 Jun 2 Mood +3 🙂

…in reply to @akashgoswami_
Be aware of other fees like: • Late payment fees • Balance transfer fees • Foreign currency fees • ATM withdrawal fees Please don't use a credit card to make ATM withdrawals ❌ I recommend paying off the entire balance before the end of the 0% promo period (see below)
Permalink On twitter.com 2021 Jun 2 Mood +3 🙂

…in reply to @akashgoswami_
Managing repayments 🎯 • Plan what you'll use the card for 🤔 • Take your balance and divide it by the number of 0% interest months you have ➗ • Pay off that amount each month 💰 If done correctly, you can pay off the entire balance without paying any interest
Permalink On twitter.com 2021 Jun 2 Mood +1 🙂

…in reply to @akashgoswami_
Ok, but when would you use a 0% interest credit card? • When you are making a large planned purchase (e.g. a sofa 🛋️) • In an emergency, e.g. for a car repair or if you need to pay a vet bill 🐾 • When you need to move a balance from one card to another (more on this below)
Permalink On twitter.com 2021 Jun 2 Mood +1 🙂

…in reply to @akashgoswami_
On that note, there are two main types of 0% credit cards: 1️⃣ Purchase credit cards 2️⃣ Balance transfer credit cards Purchase credit cards are used for buying things directly on the card either instore or online and then paying back what you borrowed at a later date 🛍️
Permalink On twitter.com 2021 Jun 2 Mood 0

…in reply to @akashgoswami_
A balance transfer credit card is used to transfer the balance from a credit card with high interest to a card with 0% interest This is helpful in situations where you're trying to pay off your existing debt without adding more interest to your balance at the same time
Permalink On twitter.com 2021 Jun 2 Mood +2 🙂

…in reply to @akashgoswami_
So, why do creditors offer 0% interest promotions on new cards? • To attract new customers • They make money via interest charged after the 0% promo ends from people that didn't pay off their balance • People continue using the card after the promo period (interchange fees)
Permalink On twitter.com 2021 Jun 2 Mood -1 🙁

…in reply to @akashgoswami_
What 0% credit cards can you get? This will vary based on your credit score and other financial circumstances Creditors want to see that you'll be able to pay back what you borrow and that you're reliable You can use comparison websites to see what cards you'll be offered
Permalink On twitter.com 2021 Jun 2 Mood +2 🙂

…in reply to @akashgoswami_
Should you sign up for a 0% interest credit card? This will really depend on your personal circumstances and what your goals are The reasons I've mentioned above might be why you use a 0% credit card (planned spending, emergencies, balance transfers)
Permalink On twitter.com 2021 Jun 2 Mood +1 🙂

…in reply to @akashgoswami_
It can be really easy to overspend and find yourself unable to pay off the debt before the 0% promo ends This is often how creditors make their money as people overestimate their ability to pay back the debt in time I know this because I've seen it happen to friends before
Permalink On twitter.com 2021 Jun 2 Mood -5 🙁

…in reply to @akashgoswami_
Let's recap 🧢 • You get a certain number of interest-free months 🔢 •Watch out for other fees 💸 • Pay off your balance before the promo ends and pay at least the minimum monthly payment each month (or more if you can) 🎯 • Plan your purchases and don't overspend 🛍️
Permalink On twitter.com 2021 Jun 2 Mood +3 🙂

…in reply to @akashgoswami_
I cover other personal finance topics in my newsletter @akashandmoney Subscribe to get those sent directly to your inbox 📬 Like this thread? 1. Retweet the 1st tweet above ♻️ 2. Follow me @akashgoswami_ for more threads I'll be dropping soon 🧵
Permalink On twitter.com 2021 Jun 2 Mood +2 🙂

…in reply to @akashgoswami_
You can read the unrolled version of this thread here: typefully.app/u/akashgoswami_/t/8NW9vDs2QE1y
Permalink On twitter.com 2021 Nov 23 Mood 0