can someone explain credit cards?

The TRANSFER rate means money you move to that bank from another credit card. The amount you charge for you insurance WILL be charged interest. Interest (you should check and see what the interest rate is) will be charged on the amount that is not paid at the end of each billing cycle (monthly). Typically not a great way to pay bills unless you are POSITIVE you will pay it off soon. Hope this helps.

First, read the fine print. Assuming your friend gets the 0% card, then you have to figure out if the insurance premium qualifies as a balance transfer or a new charge. If it is a new charge, you then have to figure out if it qualifies under the 0%. Assuming it qualifies under the 0%, expect there to be a balance transfer charge (usually 3%). This gets added on to your balance right away. Once the balance has been transferred, you will get a bill. You have 16 months to pay the balance without incurring finance charge. You may have minimum payments to make each month - if you miss one of these payments, the 0% deal goes out the window, you get charged back finance charges from the transfer date and your interest rate skyrockets. If you make at least the minimum payments, no interest is directly added to each bill. If you pay off the entire balance within 16 months, all the interest is waived. If it takes you 17 months or longer, all of the back interest is added back into the balance, so if you can pay it off within a few months, do so.

Hope this helps

paying your car insurance with a credit card would not be considered a 'balance transfer'

you would want to see what the normal or introductory apr is.

for the sake of answering your question, pretend that the introductory apr is 0% for 16months.

this means that any purchase you make with the card will be interest free IF paid off in full within the first 16 months of having the card.

difficult to explain but I will try APR is the annual percentage rate. however it is a "theroetical" figure. if you borrow £100 and pay 2% a month you would think thats 12x2% = 24, but it isnt because you pay 2% on each previous 2%. jan borrow 100 - 2% = 102 owed feb 102 owed - 2% = 104.04 mar 104.04 owed = 106.1208 .... .... by the end of december you owe 126.8242 - so APR is 26.83% however - it still gets more complicated, because each month you pay an amount off your outstanding balance., so if you just borrowed the 100 and paid off 2.5% then your outstanding balance reduces and by the december you have paid £23.29 in actual interest so the rate would only be 23.29. rates are usually quoted assuming that every month you make the minimum payment, but then spend that amount bringing it up to the first example. so now that has totally confused you, i know it did me and I'm typing it, the best advice is , LOWER THE BETTER. watch out for changes though, because a lot quote their "typical" rate but you will find it only gets offered to people earning over 400K a year, with completely clean credit history and no current borrowings.

Best way to use a credit card is to pay the balance off in full every month, otherwise you get charged whatever extortinate interest they charge you.

They shouldnt be called credit cards-they should be called debt cards