All these rates confuse me!

Lauraaaah

I recently got my first credit card from RBS which has an introductory rate of 0% on Purchases for 6 months and 0% on Balance Transfers for 13 months. I haven't used it yet, but I've now decided to book a flight to Canada for Christmas.

I can easily pay this flight off within 3 months, but before I book it, does that mean that I pay no interest for the 3 (planned) months of me paying off the account? Or are they going to catch me out somewhere?

I have no plans of using it after paying for this flight, unless it's an emergency like I planned to have it for.

Thanks!

YorkshireBoy

Just pay at least the minimum payment each month by the payment due date, and make sure you clear the balance to zero before the 0% runs out (6 months?), and you will pay no interest.

Do not withdraw cash on the card.

Lauraaaah

Thanks! :beer:

I only ask because my Mum was concerned about the flight cost getting extreme amounts of interest added onto it each month, so I thought I'd just check it out on here to make sure I don't need to pay more than what I've used.

Kevina_2

why shouldnt you withdraw cash?

AceCobra1

You should withdraw cash because of the charges and interest - you should go read about it. It is called cash advances - think it is 3% so if you withdraw say £1k, thats £30 in charges alone and of course the interest rates are quite astronomical, 25% certainly is not uncommon. You need to either be very desperate or an idiot to do that so don't.

Example:
[FONT=Arial, Helvetica, sans-serif] on Cash Advances at a standard variable annual rate of 24.9% if your APR is 16.9%(variable), 25.9% if your APR is 19.9%(variable); and

That means that if you withdrew £1k in cash, your interest will be £249 [/FONT][FONT=Arial, Helvetica, sans-serif] + [/FONT][FONT=Arial, Helvetica, sans-serif]in the 1st yearsince they add the interest in every month
[/FONT]
With regards to the 'catch' you will be charged by the airline company for paying by credit card isn't? I think normally is like 2/ 2.5% isn't ?