I will probably seem really dim here but...

cattattat

My boyfriend has just applied for the first credit card that either of us have ever had, so we don't really have a clue about all the ins and outs.

It's the Halifax All In One card, which offers 0% on purchases for 10 months. The paperwork came through for him to sign today and although in one table it confirms that purchases are 0% for ten months, later on it says that the interest free period is 'maximum 59 days for purchases if you pay the balance in full and on time'.

Please be patient with me - to anyone who knows anything about credit cards, I probably seem completely thick, but what I want to know is does this mean that we're not being given the full ten months interest free?

Thank you in advance!

CLAPTON

normally you pay no interest is you pay in full each month i.e. you have a maximum of 59 days etc.
however, with the special offer he will pay no interest for the first 10 months as long as he:-
pays the minimum amount on time each month (best to set up a DD to pay the minimum )
doesn't draw cash

NickX

No, the maximum 59 days interest free period is standard - if you make a purchase just after your statement date, then you have nearly a month before your next statement when the purchase shows, then you have up to another 4 weeks to make the payment, hence by timing payments carefully you can always benefit from up to 59 days of interest free period. Note that this only applies if you always settle your statement in full and before the payment due date.

However, for the first 10 months only, you have a special 0% interest promotion on your purchases. This means that no interest will accrue on purchases for this period. So, you can make minimum payments only and you will still not pay any interest.

However, do clear your balance in full before the 10 month promotional period expires to avoid paying interest, otherwise you will end up on the standard variable rate which can rise to some quite extortionate levels.

Garetha

cattattat wrote: »

...0% on purchases for 10 months.
... the interest free period is 'maximum 59 days for purchases if you pay the balance in full and on time'. ...

You get your bill once a month and are allowed 2 or 3 weeks to pay - this is the 'up to 59 days'
As long as you only purchase (no cash) you get the 0% offer for 10 months

cattattat

Thank you! :beer:

We were hoping it would be something like that, but were having a bit of a panic just in case!

One more question - does the ten month period usually start from the date of issue or the date of the first purchase?

NickX

cattattat wrote: »

One more question - does the ten month period usually start from the date of issue or the date of the first purchase?

Usually Date of Issue, but I would advise phoning them and requesting the precise date of the expiry of the 10 months so that you know exactly when to clear you balance by.

cattattat

Thanks everyone, I wasn't expecting such quick replies. You've all made me feel miles better! :j

YorkshireBoy

NickX wrote: »

Usually Date of Issue, but I would advise phoning them and requesting the precise date of the expiry of the 10 months so that you know exactly when to clear you balance by.

In my experience (with several Halifax cards), the end of promotion date is shown on every statement they send you. There really is no excuse for missing it.

As far as I know, Halifax are the only provider to do this.

methusala_2

One point to be careful about. Many people see the end of promotional date as say May 10th. Remember if there is a balance on May10th then that balance will attract interest untill its paid in full. So to avoid any interest you will need a 0 balance on may10th requiring you t make a payment before that to 0 the card before the promotional date ends. Even waiting till your payment date of maybe May 29th would incur some interest from May 10th to May 29th. Make sense???