Best Card for Occasional Use??

DaftBat_2

I don't currently have a credit card, so no balance to transfer, but I decided to get a credit card again, just to use on the odd occasions when I want to buy something on-line and the site doesn't accept debit cards.

On the spur of the moment, while I was in my bank (NatWest) I asked about a credit card and applied and was accepted. At the time I asked the guy to confirm that if I paid off the balance in full each month I wouldn't have to pay interest, and he did confirm this.

On reading the small print later, I find that interest will be charged from the day of purchase and if you pay the bill off in full then the interest will be credited the following month. As far as I can see, that means that if I don't use the credit card for several months then NW have use of the amount of interest that they've credited me with from my previous bill. :mad:

Is that normal practise now? Is there a card that doesn't do this? I'd rather cancel the NW one now and get one that won't cost me anything!!

skyrider007

I think you've heard the wrong information. If you pay off your bill (current and previous month) in full every month then you should not be charged interest on any purchase transaction.

Here's a quote from NatWest website:

Enjoy an interest free period on purchases made with your Classic Credit Card - up to 56 days - if you pay your current and previous month's balance in full and on time. Please see Summary Box for details.

http://www.natwest.com/personal/day-to-day/credit-cards/g1/classic.ashx

DaftBat_2

Yes skyrider007, it does say that on the contract too:

2(C)(a) Your statement will show a balance and a payment date. If (1) you pay the full balance by the payment date and (2) you also paid the full balance shown on the previous month's statement by the relevant payment date, we will not charge you interest on the purchase transactions shown on the statement (see 2(C)(g) below for more details).

But then it also says:

2(C)(c) For any purchase, balance transfers and advances we will charge interest, from the date of the transaction, on the amount of the transaction.

and

2(C)(g) Interest is applied to your account on the statement date. An adjustment to the interest applied will be made on the next statement, if, as explained in 2(C)(a) above, you are entitled not to pay interested on a category of transactions.

Do you think i've misinterpreted it then? (That would be good!!)

DaftBat_2

Anyone else?

YorkshireBoy

Interest does indeed accrue daily for purchases, but they waive it if you pay the bill by the payment due date.

If you don't pay in full by the due date, then they apply the interest from the date the transaction(s) were debited to your account.

skyrider007

Read the following clause again.

DaftBat wrote: »

2(C)(a) Your statement will show a balance and a payment date. If (1) you pay the full balance by the payment date and (2) you also paid the full balance shown on the previous month's statement by the relevant payment date, we will not charge you interest on the purchase transactions shown on the statement (see 2(C)(g) below for more details).

i.e. 2(C)(g) will NOT apply if you've met the condition of 2(C)(a)(1) and (2).

DaftBat_2

Ok, thanks