credit card cheques?

A way to get the gullible to owe them more money.

They're "cheques" frequently treated as a cash withdrawl against the credit card account.

That's the point, indeed. Use 'em and you'll get charged interest immediately, just like a cash withdrawal. Tear 'em up unless you're really desperate.

Tiddy Ogg.

"Tiddy Ogg" wrote

... unless they say (eg) "0% interest for 9 months" etc, and you can get more on the loot elsewhere (eg an offset mortgage).

All the cheques they send me seem to have zero- or low-rate interest for a period/life.

Yes but you know what the catch is, don't you?

"Andy Pandy" wrote

The 'small fee' ? Even if it is 3%, spread over 9 months with

0%pa interest is only equivalent to about 4%pa interest.

The possibly higher interest on the 'fee'? Even that only adds a few tenths of a % to the effective rate.

The fact that it reverts to standard rate at the end of the period (if not fixed for life) ? Just make sure that you pay it off before the cheap rate expires!

Or were you thinking about another "catch" ?

The fact that it has to be paid off at all seems to catch quite a few people unawares.

Thanks for the replys guys... Think I wont use them after all!

They do say I don't have to use them if I don't want to, just distroy them.

Nope.

Nope.

Nope.

Yes.

The fact that almost invariably, any payments you make to the card will go towards paying the lower interest items first.

So if you spend say 1000 on the card, then write one of these cheques for 5000, then pay 1000 when your statement comes, that 1000 will be put towards the "cheque" balance, not your spending. So you'll pay the normal rip-off rate on that 1000, and your low rate "cheque" balance will go down to 4000. And you won't be able to pay off your

1000 "spending" balance, on which you get charged the rip-off rate, till you've completely cleared the low rate "cheque" balance.

Of course I'm sure you knew about that already, and can come up with some convoluted reason why you didn't mention it above, in your usual style when someone points out something which you didn't know or understand.

"Andy Pandy" wrote

"Andy Pandy" wrote

"Andy Pandy" wrote

"Andy Pandy" wrote

Yes, of course (except for Nationwide!).

That's why I'd pay off any outstanding amount before using a cheque.

"Andy Pandy" wrote

Yep, you need to pay off the 1,000 first *then* use the cheque (after waiting a few days to ensure the payment is correctly received!).

"Andy Pandy" wrote

Yep...

"Andy Pandy" wrote

Eh? I merely forgot to mention it. From your comment, do you seem to think that I deliberately missed that out?

"Andy Pandy" wrote

Eh? We've already established, that I *did* know & understand that. I just forgot to mention it. So what? How many different "catches" was I expected to list?!

When I get them they're always on the bottom of the statement (although I tear off the bottom bit of my statement before filing them so I have to shred these cheques. Annoyingly they're not perforated in the same place as the statements without a cheque so I have to try and tear along the crease without it separating at the perforations in order for the statements to fit in my file)

Although I wish they wouldn't send them, it's all the junk mail with my address on it (sometimes multiple times when there are pre-filled in forms) that annoys me more. I always try to tear any addresses off before putting the paper in for recycling so that there's never anything that shows my address together with a company I have a relationship with.

I wish that this junk stuff would a) arrive with the address on a blank sheet of paper showing through the envelope window. b) didn't have the address printed on anything else in the envelope (if companies want to save the person having to fill their name and address in, the front sheet could be a peelable label that could be peeled off the "address page" and stuck onto the form.

But as all this is going to cost the junk mailers I don't hold much hope.

(I don't object to things like bank statements, utility bills etc having my address on them as I'm going to file or shred them anyway. It's all the other stuff I don't want and didn't ask for)

Tim.

Yes - but I don't think Nationwide issue CC cheques. I've never had any off them.

Indeed - and of course not use your card for spending while you have the low rate balance outstanding.

"cheque"

rip-off

balance.

received!).

Well at least you admit that much...

No, I'm just somewhat surprised that it didn't immediately spring to mind when I asked you if you know what the catch is.

The (by far and away) most significant one. The one you listed were fairly trivial, hardly what I'd describe as a "catch".

Not being aware of the "order of payments" catch could cost a large amount in interest. That is THE catch which I was referring to.